Answers to Lango’s “Apple’s Secret Weapon: The Small-Cap AI Company Poised For 1,000% Gains”

by Travis Johnson, Stock Gumshoe | June 10, 2024 10:45 am

Pretty much every “growth” investor worth his salt is making big promises ahead of Tim Cook’s keynote address to the Apple WWDC today — mostly out of habit, I expect, because every time Apple (or NVIDIA, lately) makes an announcement, the newsletter jockeys use that as a moment to recruit new subscribers by promising some insight… or, really, some foresight.

It almost always works this way: An announcement is coming, a newsletter editor hints that he knows the secret tiny company that will be named by Jensen Huang or Tim Cook as a key partner or supplier, and that this company happens to be publicly traded, and it will naturally shoot higher on the news, making us all rich.

It has happened a few times over the years, though mostly with smallish hardware suppliers to Apple, as the iPhone was really ramping up in volume… but it doesn’t happen often. It’s not usual for these megacap companies to single out a little publicly traded supplier during their big product announcements or software conferences. Not impossible, of course, and I can’t prove a negative until after 1pm EST today — but unlikely.

So with that backdrop, here’s Luke Lango[1]’s pitch for this “secret supplier”… it comes in the form of an ad for his Early Stage Investor[2] ($1,799, no refunds — these “big news coming” ads are almost all for high-cost nonrefundable newsletters, otherwise they’d be swamped with refund requests when it turns out that they were wrong about the day’s big press release or announcement… as they almost always are):

“And we are here today because just hours before this massive Apple AI announcement, Luke is getting ready to make one of the biggest calls of his career…

“In short, he believes Apple’s 100X AI announcement could set the stage for a tiny small-cap tech stock to soar into and beyond the summer…

“Giving you a rare opportunity to capitalize on what Luke believes could be the biggest AI stock winner of 2024.”

And it’s all about Apple improving AI, and ramping up Siri’s capabilities to do real generative AI work, which has been widely reported in the news media — Apple is secretive, still, but not as locked-down as it was when Steve Jobs[3] was in charge, and tidbits leak out to the hundreds of reporters who follow Apple’s every move.

But Lango thinks they’ll do something specific, tying in with a very small company that offers a better product than Apple’s built-in version…

“But according to legendary tech insider Luke Lango, the media is missing the most important part of Apple’s story…

“The story of how a tiny AI company with more than 20 patents holds the key to Apple’s AI takeover.

“While nobody knows for sure what this announcement will be…

“If Apple’s CEO mentions this small cap company’s name on stage June 10th… there’s no telling how high its stock could go…

“We’re talking the potential to double in the matter of minutes…”

Here’s how the ad puts it:

“I’ll show you step-by-step exactly why I think this tiny, small cap company is poised to soar in the coming days…

“Then you can decide for yourself if you think this opportunity is right for you.

“And of course remember, it goes without saying that all investing carries risk.

“But I’m confident that once you see all the evidence I’ve gathered…

“You’ll see why I believe this tiny company could be the biggest winner of Apple’s 100X AI announcement.

“And it all goes down just days from now on June 10th at Apple’s annual worldwide developer conference.

“I think this is going to be huge…

[4]

“Apple is about to turn AI, the whole industry, completely on its head…”

What will the Apple “AI Blueprint be?” Like James Altucher[5] and others, Lango refers to the announcements as preparing for the launch of the first “AiPhone”, with the world’s most popular consumer device turned into a powerful AI tool. And he starts to get into specifics:

“What exactly is it going to be?

“No one knows for sure.

“But I believe it will hinge on one critical partnership between Apple and a tiny tech company that hardly anyone has ever heard of before — and amazingly, I haven’t seen this potential partnership be covered in any mainstream news outlet.

“The world is sleeping on this potential tie-up.
“I’m just speculating here, but If Apple partners with this company and rolls out its tech to its 1.4 billion active iPhone users across the world…

“Or even buys this company out (which it has with over a hundred other small companies in the past)…

“Do you have any idea how much this small cap stock would be worth?

“This company that no one knows about has a market cap of just $1 billion…”

OK, so that’s our first real clue — very small company.

And this has to do with Apple’s partnership with OpenAI[6]… more from Lango:

“So recently, Apple announced a big partnership with OpenAI, the creator of ChatGPT[7] and arguably the world’s foremost AI company.

“Some of you may have heard about this partnership. I talked about it in my various research services the past couple of weeks.

“Nonetheless, to recap, the partnership is all about bringing ChatGPT natively to the iPhone via the latest iPhone software update, iOS 18 — which is expected to be officially unveiled at WWDC 2024 on June 10th.

“What exactly does that look like?

“No one knows for sure. But I suspect it means integrating ChatGPT throughout the iPhone, perhaps even replacing Siri and equipping every iPhone with its own unique ChatGPT AI personalized to the phone owner.

“Imagine Siri being actually super smart and capable, booking restaurant reservations for you, or firing off messages and emails that are actually correctly worded, or planning your day, or suggesting TV shows and movies.

“That’s what I think Apple will unveil with iOS 18 at WWDC24. It’s going to be all about upgrading the iPhone with AI features and services.”

And then we get the real clues:

“And I think the biggest component of this OpenAI/Apple AI announcement will be related to the web browser, Safari.

“I’d venture to say that Safari is the most-used app on the iPhone. Just looking at my own phone usage over the past 10 days, Safari accounted for 21% of my screen-time. No other app accounted for more than 8%. I’d bet Safari is the most used iPhone app for most of you out there, too.

“So… if Apple wants to really upgrade the iPhone to be an AI experience… it needs to focus on upgrading the most-used app on the iPhone… the web browser… to be an AI-powered web browser.

“I think that will be center-point of Apple’s AI announcement. The upgrading of Safari to an AI-powered web browser.

“Or, rather, maybe I should say replacement.

“You see — I don’t think Apple is going to equip Safari with AI features. I think they’re going to flat-out replace Safari with a brand-new AI-optimized browser….

“And the owner of this AI-optimized browser — the one that I think could win an Apple partnership — is the tiny stock that I’ve been talking about over the past few minutes.

“That’s the investment opportunity I’m so excited about here.”

A couple other tidbits:

“I’ve internally called this web browser OpenAI’s “favorite” web browser to my team.

“That’s because they’ve built an entirely new AI-optimized web browser powered by OpenAI’s core generative AI technology. In essence, it is a ChatGPT-powered web browser.

“And this company just announced that they are launching the app version of this AI-optimized web browser for iPhones….

“This small company actually has more than 20 approved patents that protect its proprietary technology.”

So that, dear friends, is the oddball little browser company that’s been lingering in the market for years, never really taking off but surprisingly never being acquired or evaporated by the competition — Lango is teasing Opera (OPRA)[8].

Which is an impressive little company, with solid growth and profitability as it keeps introducing new browsers for mobile devices — it’s up to about a $1.5 billion market cap these days, but still trades at only less than 20X forward earnings, with earnings growth that averaged more than 30% a year for the past five years. And they did jump on the AI story last year, which caused the stock to surge for a while, though it came back down and has been a bit more placid this year.

Will OPRA be mentioned in Tim Cook’s keynote address, or shoot higher as their browser is more heavily used on whatever the latest iPhone is? Probably not. And one wonders whether Apple could get an acquisition like Opera through antitrust approval, even if they wanted to, so I certainly don’t expect a big partnership or acquisition announcement at WWDC today… though I suppose anything is possible.

Beyond that, we’re running up tight to the late morning here, and I know lots of folks have questions about this one, so I’ll just pass it back to you and let you discuss it amongst yourselves… expect big things out of Opera, either because it gets mentioned by Tim Cook or just because they’re a reasonably valued tech stock with decent growth? Think they’ll fade back into oblivion once the latest AI mania subsides? Let us know with a comment below… thanks for reading!

Disclosure: Of the companies mentioned above, I own shares of NVIDIA and have stop-loss trades entered for NVIDIA that could trip at any time. I otherwise will not trade in any covered stock for at least three days after publication, per Stock Gumshoe’s trading rules.

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