Stocks are taking off! Nel, RENK, Walmart partner MiMedia! Is the tariff chaos coming to an end?

MiMedia: Time for a revaluation?

Investors in MiMedia shares can speculate on a breakout from the sideways trend. The cloud insider tip's stock has impressed with relative strength in recent weeks and has been largely unaffected by the tariff chaos. If yesterday's deal between the US and China is indeed the beginning of a broad settlement of the tariff disputes, the stock market lights would be green.

This should finally reward MiMedia's quantum leap in operations on the stock market. The operator of an innovative cloud platform for media content based on artificial intelligence has entered into a partnership with the Walmart Group and aims to grow strongly in the current year. Scaling would then enable gross margins of over 80%. This means that MiMedia shares are ripe for a complete revaluation.

Background: MiMedia gained Walmart Latin America as a strategic partner in the first quarter of 2025. The US retail giant's subsidiary operates more than 4,000 stores in Mexico and Central America and is a major player in the local telecommunications market with its "Bait" brand. In Mexico, Bait has risen to become the third-largest provider in just five years, with over 18 million customers, and is now challenging the number two spot.

Walmart, therefore, opens up huge revenue potential for MiMedia. Under the partnership, the MiMedia app will be pre-installed on all smartphones sold by Bait in Mexico. The app will be installed on the Android devices of over 18 million existing customers via an over-the-air update (OTA). Overall, MiMedia will become an integral part of the Bait Cloud platform. Walmart appears to have big plans for the Bait Cloud platform in Latin America and intends to promote it further through extensive advertising campaigns. Walmart already operates very popular applications in the region, such as "Cashi" (for digital payments) and "Salud" (for health topics). Integrating MiMedia content is intended to increase user loyalty and revenues further.

The Walmart partnership should cause MiMedia's user numbers to explode in the current year. The high-margin, recurring revenues should develop accordingly. And let's not forget MiMedia's US business. The Company expects potential gross revenue of more than USD 125 million from existing device contracts alone. With a market capitalization in the low double-digit million range (CAD), this is crying out for a revaluation.

There could be some momentum as early as next week. On May 21, MiMedia CEO Chris Giordano will present at the virtual IIF conference Click here for free registration.

Nel: All or nothing?

Nel shareholders are used to emotional rollercoasters. And once again, there is bad news, but also a glimmer of hope.

First, the negative news: Statkraft has cancelled its order for the delivery of an alkaline electrolyser with a capacity of 40 MW. The contract, which was signed in early 2023, was worth NOK 120 million. However, Nel had already classified the order as "significant risk" in its contracts. "Statkraft has been deeply committed to the development and financing of a hydrogen project in Mo for several years. Despite these efforts, we have not been able to develop a viable business model for the project under the current market conditions. We must therefore adjust our plans accordingly and cancel our order with Nel," said Bjørn Holsen, SVP for Hydrogen at Statkraft.

On the other hand, Nel could benefit from EU plans. The EU Commission, led by Danish Energy Commissioner Dan Jørgensen, is pushing ahead with plans to completely phase out Russian gas in the future. According to these plans, companies in the EU will no longer be allowed to sign new gas supply contracts with Russia from the end of 2025.

The purchase of gas on the spot market is also to be prohibited. By the end of 2027 at the latest, imports of Russian gas into the EU are to be banned entirely. Such a phase-out should give the hydrogen industry a boost. However, the impact of political decisions on the industry's growth has been greatly overestimated so far.

RENK: Fall height increases

Is the growth of the defense industry also being overestimated at present? The share prices of Rheinmetall, RENK, and Co. certainly reflect enormous expectations. RENK's share price alone has shot up from EUR 20 to EUR 60 in the current year. The Company will report on its performance in the first quarter tomorrow. The focus is likely to be on order intake and the outlook. Unlike a cloud company such as MiMedia, Renk cannot scale at the same pace, which makes delivering on expectations more challenging. Analysts expect RENK to generate more than EUR 270 million in revenue in the first quarter of 2025. For the full year, RENK forecasts revenue of over EUR 1.3 billion and adjusted EBIT of between EUR 210 million and EUR 235 million.

Yesterday showed that peace negotiations - or even the prospect of peace - between Ukraine and Russia could lead to heavy profit-taking in defense stocks. RENK shares fell by over 6%. German industry leader Rheinmetall dropped by a similar margin, and Hensoldt shares even fell by double digits.

Analysts are also becoming increasingly cautious. Although most recommend buying RENK shares, the average price target is EUR 50. There is therefore little upside potential.

MiMedia is facing a revaluation. Next week, the IIF could bring an update on the Walmart partnership and overall user growth. In contrast, there is still no compelling reason to buy Nel shares. Hopes for a political boost have so far failed to materialize. RENK, meanwhile, has been anything but disappointing in the current year. However, the potential downside for the share price should not be underestimated, even if the long-term prospects remain strong.