LikeFolio Weekly Roundup

The market experienced significant volatility this week, primarily due to developments in the AI sector. DeepSeek, a Chinese AI startup, released its latest reasoning model, DeepSeek-R1, which rivals leading U.S. models like OpenAI's ChatGPT. This release led to a substantial sell-off in U.S. tech stocks, with major companies losing over $1 trillion in market value. 

Andy and Landon broke down by the initial selloff was an overreaction on the Founders Call.

Midweek, the Federal Reserve opted to maintain the federal funds rate at its current range of 4.25% to 4.50%. This decision was anticipated by markets, given recent inflation data showing an increase from 2.4% in September to 2.9% in December.

A stronger than expected report from Apple (led by its services revenue) and inflation data on par with expectations sparked a rally at the end of the week.

Stocks are closing out January with gains, with the Dow posting its best start to the year since 2019 and the S&P 500 and Nasdaq marking their strongest January since 2023. Historically, a positive January increases the likelihood of further gains, with the S&P 500 averaging a 9.4% increase over the next 11 months when January is positive, compared to just 2.1% when it declines.

Infinite Hold Update

• We also saw a nice move to the upside from Tesla (TSLA) after a compelling earnings call from Musk and promises of growth. We broke down our Bullish thesis in detail here.

• Amazon (AMZN) has earnings on deck next week as the stock trades near all-time highs.

• Bitcoin ended the week up just over half a percent, but proved to be fuel for Tesla’s bullish move.

Portfolio Update

Here’s an overview of the biggest movers in our portfolio through the close on Thursday, Jan. 30:

Stride Inc. (LRN): +12%
LRN surged after beating fiscal Q2 estimates across the board. Revenue came in at $587.2 million, well above the expected $569.25 million, while earnings per share hit $2.03, topping estimates of $1.94. The online education provider continues to benefit from rising demand for flexible learning options and macro trends shifting in favor of universal school choice. 

On its call, leadership noted, “for three consecutive years now, we have seen increasing growth in our business. And also for three consecutive years, we see continued in-year strength in demand. The macro environment for our business is as strong as ever.” 

We see a tremendous growth runway from here.

Shopify (SHOP): +10%
No major company news, but SHOP moved higher as tech names rebounded from Monday’s DeepSeek-fear-driven-selloff. In the last week, reports also surfaced that Shopify is cutting customer support roles and shifting toward AI-driven automation, a move that could boost long-term margins. 

Shopify web volume continues to rocket, hitting its highest growth rate in the last 3 years in the month of December: +31% YoY.

Reddit (RDDT): +9%
No official news from the company this week, but RDDT shares climbed as interest grows in the platform’s potential as a data goldmine for AI training. Investors are watching how its partnerships in this space develop. Jeffries raised its price target for Reddit to $230 on strong ad growth. Our bullish position has already posted +40% gains in less than 2 months and we see continued upside from here.

Paysafe (PSFE): +8%
PSFE shares are gaining momentum a few weeks after releasing its annual ‘All the Ways Players Pay’ report, which detailed trends among 4,300 online sports bettors. The report highlighted growing demand for faster, more secure payments—an area where Paysafe is well positioned. Paysafe web growth crossed +40% YoY in November and continues to hold above that level. The company reports earnings in just over a month.

Payoneer (PAYO): +7%
PAYO moved higher after Cantor Fitzgerald released a bullish outlook, forecasting earnings of $0.35 per share for 2025. Investors are watching closely as cross-border payment volumes continue to rise. For instance, Visa reported a 16% increase in cross-border volume in its recent earnings report. These trends highlight the growing demand for efficient international payment solutions, positioning companies like Payoneer favorably in the market. 

On Holding (ONON): +5%
ONON edged higher after Morgan Stanley reiterated its ‘Buy’ rating and set a $65 price target. The Swiss sneaker brand has been gaining market share in the U.S., and analysts see more upside ahead – we agree. Our bullish position has logged nearly +200% in gains since entry.

SoundHound (SOUN): -11%
SOUN tumbled after filing for a $500 million mixed shelf offering, including a $250 million at-the-market sale. Investors didn’t like the dilution risk, sending shares lower despite continued growth in AI-driven voice technology. We’re not concerned.