However, that doesn’t mean I blindly hold onto shares, come what may. I will exit a holding if my investment thesis is broken. Or I see better potential opportunities elsewhere.

With this in mind, here are three stocks I recently sold, and why.

A pleasant surprise

The first was British American Tobacco (LSE:BATS). I was surprised when I found myself attracted to this FTSE 100 dividend share early last year. I’d never owned a tobacco stock before, due to falling cigarette volumes.

However, the stock just looked ridiculously cheap to me. In April 2024, I wrote: “We’re looking at a forward price-to-earnings (P/E) of 6.4, with a forecast dividend yield of 10.1%… to me, this high-yield FTSE 100 dividend stock offers exceptional value.”

I’m glad I embraced the risk, as the stock has since returned nearly 80%. And that’s before the juicy dividends!

Obviously, a starting dividend yield of 10%’s fantastic. So why sell? The same risk as above really, which is that cigarette volumes are set to continue shrinking, while there’s evidence GLP-1 weight-loss drugs are helping reduce nicotine cravings.

Plus, with the forward P/E ratio near 12, I feel the stock’s now more fully valued. So I decided to bank the gains and invest elsewhere.

An odd decision?

Another stock I sold was Oddity Tech (NASDAQ:ODD). This is a beauty/wellness company that uses artificial intelligence (AI) to build digital-first brands, most notably Il Makiage (make-up) and SpoiledChild (personal care/supplements).

The company recently beat Q2 revenue and profit estimates. And it raised full-year revenue guidance to as much as $804m, from $790m-$798m previously.

CEO Oran Holtzman struck a bullish tone: “Our business is growing with high profitability, multiple engines, and long runways.”

Oddity is a disruptor in the massive beauty industry and still has a small $3.3bn market-cap. The stock’s done well since I started a small position last year, rising 37%.

Unfortunately, I’ve noticed that some customers have complained online that Oddity’s brands attract them with trial offers, before rolling them into auto-renewing subscriptions that are difficult to cancel. A short-seller report also mentioned this last year. 

Now, the company disputes this, saying its subscriptions are opt‑in and easy to cancel. Be that as it may, I was finding it hard to build conviction with this issue lurking at the back of my mind.

So while accepting I may come to rue my decision if Oddity becomes the real deal, I decided to sell my shares.

The final stock was Toast, which operates an all-in-one cloud platform for payments and online ordering for restaurants. Unfortunately, a lot of US restaurants are suddenly reporting very weak sales.

Is this just temporary consumer spending pressures? GLP-1s again? Or both of these things? I have no idea, but I fear it may suddenly harm Toast’s growth trajectory, so I exited my position.

Cash at hand

Another reason for selling a handful of shares was that I wanted some dry powder. Markets are at record highs and a lot of valuations look stretched. If there’s a sell-off this year, I’ll now have cash spare, ready to take advantage.

The post 3 shares I’ve just sold in my Stocks and Shares ISA appeared first on The Twelfth Magpie.

Here are two slightly unusual stocks in my ISA that are up by double digits in 2025.

eVTOL pioneer

First up is Joby Aviation (NYSE: JOBY), which has risen by just over 16% (more than both the S&P 500 and FTSE 100).

This company is unconventional because it’s attempting to commercialise a brand new industry, namely eVTOLs or electric flying taxis. It has over $1bn on the balance sheet, and is backed by Toyota, Uber, and Delta Air Lines.

Joby’s aircraft, which is getting closer to full regulatory approval, can carry one pilot and up to four passengers at speeds up to 200mph. The firm plans to launch its air taxis in Dubai in late 2025 or early 2026, then the US, Japan and elsewhere.

Of course, the idea of flying in comfort above busy roads for the price of an Uber Black trip, and potentially saving an hour or more of time, is an exciting one. And there have been three bits of news that have sent the Joby share price up 39% in the past month.

As part of a strategic manufacturing alliance, Joby closed the first $250m of a previously announced $500m investment from Toyota.

Next, it announced a deal with Saudi conglomerate Abdul Latif Jameel to explore sales of its eVTOLs, potentially worth around $1bn.

Finally, President Trump signed an executive order earlier this month designed to accelerate the development of drones and eVTOL technology.

Recently, Morgan Stanley analyst Adam Jonas said: “We don’t think investors are prepared for the scope of this revolution…We estimate 1 eVTOL aircraft can generate as much revenue as approximately 15 ride share vehicles.”

Under-the-radar tech firm

The second stock doing even better this year is Oddity Tech (NASDAQ: ODD). It’s up 69%.

Beyond the name, what’s unusual about this direct-to-consumer cosmetics firm is that it uses AI and machine learning to personalise product recommendations. And it’s still growing strongly, despite weakness in the overall global beauty industry.

In Q1, revenue jumped 27% to $268m, powered by double-digit growth for both its brands (IL MAKIAGE and SpoiledChild). This strong performance allowed management to raise full-year guidance to $790m-$798m (up from $776m-$785m).

Another unusual aspect about Oddity is that it’s solidly profitable, which is rare for a fast-growing tech firm that only went public two years ago. In Q1, it achieved a net income of $38m and free cash flow of $87m, despite investing heavily in growth.

One risk here is limited brand diversification. If consumer preferences shift or a new rival brand gains traction, growth could slow sharply.

My current pick

For me, Joby stock is getting risky at just under $10, as it puts the pre-revenue firm’s market cap at $8bn. Any regulatory setbacks could delay the upcoming launch, quickly souring investor sentiment.

At $4bn, Oddity’s market cap is half that of Joby’s. Yet the AI-powered beauty firm is set to generate nearly $1bn in revenue by next year, putting the forward-looking price-to-earnings at around 30.

I think Oddity’s most worth considering of the two.

The post 2 unusual picks creating wealth in my Stocks and Shares ISA in 2025 appeared first on The Twelfth Magpie.

However, Nvidia is now a $2.2trn company, the third-largest in the world by market cap. It’ll be difficult for its share price to keep multiplying, in my view, simply due to the law of large numbers.

Therefore, investors like myself chasing higher potential returns might be better off considering smaller companies.

Here’s one exciting AI stock that I’ve been buying recently.

A curious oddity

The stock I’m referring to is Oddity Tech (NASDAQ: ODD). This is an AI-powered firm that sells makeup and skincare online under the fast-growing brands Il Makiage and SpoiledChild.

The share price is down 30% since going public in July 2023.

However, that hasn’t stopped Wall Street taking a shine to the stock.

Currently, 75% of analysts covering it rate it as a ‘strong buy’. Their average price target is $51, which is 41% higher than the current share price of $36.

Of course, it might never reach that target. But this does show that analysts are bullish on this unique cosmetics firm.

A profitable tech innovator!

Oddity’s business is built upon big data and machine learning (a subset of AI). Shoppers use its PowerMatch system to identify precise colour and skincare formulas through their smartphone cameras.

Il Makiage is known for its signature Woke Up Like This foundation, while SpoiledChild’s proprietary AI algorithm recommends skin and hair products tailored to each individual based on their personal profile and data.

This model has seen the tech-savvy firm amass over 50m customers and 2bn data points in just five years.

On 8 May, the company reported first-quarter revenue of $212m, a 28% year-on-year increase. That quarterly figure was almost the same as it generated in the whole of 2021.

What I like here is that unlike many high-growth tech businesses, Oddity is already profitable. It achieved a 23% adjusted EBITDA margin in the quarter and generated $79m of free cash flow, which was a record.

Long term, it is targeting more than 20% annual revenue growth and a 20% adjusted EBITDA margin.

I’m buying

Now, there are risks here. With a $2bn market cap, Oddity is still a small player in the very competitive $600bn+ global beauty industry.

It also has masses of personal user data, which could be compromised by bad actors and damage trust.

Plus, you can have all the AI tech you want, but it means nothing if the products aren’t excellent. This is where Oddity Labs comes in, though. This R&D arm deploys AI for molecular discovery to develop high-quality formulas that meet specific beauty needs.

Management said that its 12-month net revenue repeat rate is 100%. In other words, customers who spent £100 in the first year spent an additional £100 over the next 12 months.

This remarkably high repeat rate demonstrates strong customer loyalty.

Meanwhile, Oddity’s third brand, focusing on medical-grade skin treatments (acne, eczema, etc.) is being readied. This should fuel further growth.

I think Oddity is onto something very powerful here. And with the stock trading at just 20 times forecast earnings, I’m going to keep loading up.

The post Forget Nvidia! 1 AI stock to buy that could rise 41%, according to Wall Street appeared first on The Twelfth Magpie.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Enphase Energy

What it does: Enphase is a US solar energy company leading in facilitating the supply and storage of clean energy.

By Oliver Rodzianko. I bought Enphase Energy (NASDAQ:ENPH) stock in March, and I intend to add to my position in April. I consider this a very rare opportunity to buy the shares at a 67% discount from all-time high prices.

The World Economic Forum outlines a potential compound annual growth rate of 20% for solar deployment until 2050. It claims solar to be the fastest growing energy technology in all history.

However, this is a long-term investment, and I think there could be short-term losses before substantial gains.

Also, the company is highly subject to regulatory shifts. Trump getting into the White House in the upcoming election could see negative pressure on US clean energy companies if he shifts attention toward policy favourable to fossil fuels.

Nonetheless, I consider this one of the best investments in my portfolio. I think it’s truly contrarian, and I believe I’m right about the long-term potential here.

Oliver Rodzianko owns shares in Enphase Energy.

MicroStrategy

What it does: MicroStrategy develops mobile and cloud-based software for the provision of business intelligence services.

By Mark David Hartley. MicroStrategy (NASDAQ:MSTR) shares are up 507% over the past year and 120% this month. CEO Michael Saylor’s bet on blockchain assets seems to be paying off – finally. Many believe such a large investment in a nascent and speculative technology puts the company at high risk, yet he seems happy to take those odds. 

The company became profitable this year for the first time since 2020, with equity that’s increased almost five-fold since March 2023. However, with a price-to-earnings (P/E) ratio of 63.2, the share price is considered heavily overvalued. Some analysts estimate the $1,565 shares to be worth only $388. Others predict a 12-month price target of $1,810.

Opinions on the stock are extremely polarised, with some foreseeing massive gains while others predicting collapse. While I typically err on the side of caution, in this rare case I feel the reward could be worth the risk.

Mark Hartley owns shares in MicroStrategy.

Oddity Tech

What it does: Oddity analyses skin tone and beauty needs through a phone camera and uses machine learning to match consumers with products.

By Ben McPoland. I like the look of Oddity Tech (NASDAQ: ODD) right now. The company operates two fast-growing digital brands: Il Makiage, which sells cosmetics, and SpoiledChild, which focuses on hair and skincare products.

The firm only went public in July 2023 and either or both brands could fall out of fashion as new trends emerge. That’s a risk.

However, Oddity is growing very quickly and is already profitable. In 2023, revenue surged 57% to $509m as the company beat its own guidance in every single quarter. Adjusted EBITDA grew 173% to $107m.

It has collected 2bn data points from over 50m unique customers. From this data, the firm says artificial intelligence produces superior product recommendations versus a human eye. This differs from the beauty industry’s trial-and-error model.

Its proprietary skin health molecule, Fibroquin, showed stronger efficacy than retinol in a clinical trial. Unsurprisingly then, customer reviews are overwhelmingly positive.

Management says both brands are on course for $1bn+ in sales by 2028 and it plans to launch more in different categories.

Trading at 25 times forecast earnings and with a small $2.5bn market cap, I recently bought the stock.

Ben McPoland owns shares in Oddity.  

The post Best US stocks to consider buying in April appeared first on The Twelfth Magpie.

Perhaps, but here’s what my ideal candidate would look like:

• A company using AI in new and potentially powerful ways
• Growing revenue rapidly yet already or nearly profitable
• Very ambitious management team, ideally founder-led
• A share price that isn’t sky-high and ridiculously overvalued
• A market cap under $5bn

I know, I know! A stock that ticks all these boxes has to be as rare as unicorn manure.

Yet, incredibly, I think I’ve found one.

Quite the oddity

The stock in question is Oddity Tech (NASDAQ: ODD). This is an online consumer beauty firm launched in 2018.

Led by brother-and-sister duo Oran Holtzman and Shiran Holtzman-Erel, Oddity uses AI to develop brands and make tailored, data-driven product recommendations to customers.

It currently operates two digital brands: Il Makiage, which sells cosmetics, and SpoiledChild, which specialises in hair and skincare products.

The shares only went public in July 2023. However, at $46, they’re down 11% in this time.

Thankfully then, the AI hype train hasn’t yet arrived at this stock.

Oddity says it is “built to be the most impactful platform of our lifetime“. I’d say that counts as ambitious!

Intriguingly, the company’s market cap is just $2.6bn. For comparison, L’Oréal‘s market value is $266bn, or around 100 times larger.

Growing rapidly

In 2023, revenue grew 57% year on year to $509m while adjusted EBITDA rocketed 173% to $107m.

The firm beat its own guidance in every single quarter last year. And it generated $85m in free cash flow, exiting the year with $168m in cash and no debt.

Looking ahead, management expects Il Makiage to generate $1bn in sales over the next five years. And SpoiledChild, which grew 325% last year, with over half of sales from repeat customers, is on track for more stellar growth.

Meanwhile, its molecule discovery platform, Oddity Labs, is readying brands three and four in different categories. Fibroquin, its proprietary skin health molecule, apparently has a stronger efficacy than retinol (a standard ingredient in the beauty industry). This pricked up my ears.

Ticking all my boxes

Essentially, the company is aiming to disrupt the $430bn global beauty industry by replacing the in-store experience with AI and big data.

It claims – convincingly in my opinion – that 2bn data points from its 50m+ unique customers can recommend products better than the human eye of a beauty consultant.

However, this is still a young company. It only has two brands, so there’s a risk one or both could quickly fall out of fashion.

Also, there’s no guarantee the beauty industry will move mainly online. Look at groceries, for example. My local Tesco store was still packed at the weekend!

However, returning to my laundry list of requirements, we can see that:

• Founder-led Oddity is using AI to try and disrupt a massive market
• It’s growing very fast and profitably
• The stock is trading at 27 times forecast earnings, which isn’t sky-high

I don’t think this exciting AI growth stock will be unknown forever. So I’m investing while it’s still flying under the radar.

The post 1 artificial intelligence (AI) growth stock to buy while it is still in stealth mode? appeared first on The Twelfth Magpie.