Kim Bolton Astera Labs ALAB-Q BUY May 22, 2024

Stock price is too high. Wait for it to fall before buying. 

There's a halo effect to all recent IPOs, and prices are too high. ALAB is up 91% in six months. Wait for this to come down.

Hasn't moved, but he thinks it will. Makes hyperscalers run faster and more efficiently, and most of them own it. 

Not very big at $8B market cap. Main product optimizes data transfer and processing within the cloud. Cornered the market. Hyper-scalers love it. Terrific place to buy. He added last Friday. 12-month price target is $90.

Still really likes it. Once it went through $38, its IPO level, he got out. Since then, convinced some investors to get back in. Employee options skewed supply/demand on the stock and, hence, its price. Fantastic company, enhances data movement and processing efficiency of hyperscalers.

It's actually snapped back. Got all the way to just below its IPO price, now around $51. The story is so solid because all the hyperscalers love it. Very smart and well managed. Not cheap. Still believes it can get back to the $80 level. A lot of the insider trades have already happened.

People started paying attention to this, because of the hyperscalers use ALAB to make them more efficient in the cloud. He's sold two-thirds of his holding by now. He has a stop loss at $118-120. Don't buy here, but maybe at $100.

Quite the ride. There were so many stock options to sell, that stock went below IPO price. Then stock rocketed up, but got caught up in tariffs. Hold on, but you have to respect the price target.

Trades at a good PE compared to peers, offers strong growth and is well-managed. Shares have fallen to an attractive price.