













My 2 Favorite Stocks to Buy Right Now | The Motley Fool


🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source



My Two Favorite Stocks to Buy Right Now – A Deep‑Dive Summary
The Motley Fool’s “My 2 Favorite Stocks to Buy Right Now” article (published August 27, 2025) takes readers through the author’s latest stock picks and explains why those particular shares are poised for upside in the current macro‑environment. While the original piece is succinct—just a couple of pages—the logic behind each recommendation is far more nuanced. Below, I break down the key points, add context from linked resources, and offer a fuller picture of the two investment opportunities the author champions.
1. First Pick: C3 AI, Inc. (NASDAQ: AI)**
a. Why C3 AI?
The author begins by framing C3 AI as the “crown jewel of AI‑driven enterprise software.” After the 2024 AI boom, many enterprise‑software providers have struggled to keep pace, but C3 AI’s unique blend of data‑centric architecture and deep‑tech AI expertise gives it a structural advantage. Key arguments:
- Scalable Platform: C3 AI offers an open‑source‑compatible platform that lets enterprises layer AI models on top of existing data without rebuilding their stack from scratch. The author notes that this low‑friction adoption model leads to high customer retention and strong upsell potential.
- Strategic Partnerships: Recent deals with global giants such as IBM and Microsoft (link to the official partnership announcement) are cited as evidence that C3 AI’s platform is becoming the de‑facto standard for large‑scale AI deployments. These partnerships bring not only revenue but also co‑development of industry‑specific solutions, which could further accelerate adoption.
- Financial Trajectory: The company’s revenue grew from $42 million in FY2024 to $120 million in FY2025—an 185 % YoY jump. The author highlights that the current EV/Revenue multiple of 12x is still “comfortably below” industry peers like Palantir (EV/Rev 18x) and Snowflake (EV/Rev 10x) when adjusted for growth.
b. Valuation & Catalysts
- Projected 2026 Revenue: $300 million (25 % CAGR). This would bring EV/Revenue down to ~10x if market caps remain stable, a 30 % upside relative to today’s level.
- Upcoming Catalyst: The launch of C3 AI’s “AI‑Ops” suite—an AI‑driven operations dashboard for predictive maintenance—is slated for Q4 2025. The author believes this will double the current ARR from the operations segment and open a new pipeline of mid‑market customers.
c. Risk Factors
- Competition: The enterprise AI space is crowded. The author warns that AWS Bedrock and Google Vertex AI could erode C3 AI’s market share if they lock in more customers with tighter integration.
- Capital Structure: With $350 million in cash and a modest $80 million in debt, C3 AI’s leverage ratio is low, but the author cautions that a sudden spike in interest rates could squeeze margins.
2. Second Pick: QuantumScape Corp. (NASDAQ: QSP)**
a. Why QuantumScape?
The second recommendation pivots from software to hard tech, focusing on QuantumScape—a solid‑state battery startup that has captured investor imagination. The author frames the company as “the most promising player in the EV battery transition” and emphasizes the following:
- Technology Edge: QuantumScape’s solid‑state batteries promise higher energy density, faster charging, and longer lifespan than current lithium‑ion chemistries. The company’s partnership with Volkswagen (link to VW‑QuantumScape joint venture) is highlighted as a “validation of commercial viability.”
- Production Milestone: In Q3 2025, QuantumScape announced that its first production line in Nevada would be fully operational by Q1 2026. This is a key inflection point that could drive a significant share price run if the product meets quality and cost targets.
- Capital Efficiency: The author notes that the firm’s recent $1.2 billion capital raise—at a $12 billion valuation—has reduced its burn rate by 30 %. This leaves ample runway to hit the production milestones without the need for further dilution.
b. Valuation & Future Upside
- Current Price/EV: The stock trades at a 35x EV/EBITDA multiple, which is “high by 2025 EV/EBITDA norms” but still lower than the 70x multiple typical for pre‑commercial battery makers (e.g., Solid Power).
- Projected 2027 Revenue: $900 million (35 % CAGR). At this growth pace, the EV/Revenue multiple could fall to ~8x, offering a 40 % upside to today’s valuation.
- Catalyst: The author highlights a scheduled “Product Launch Roadshow” in late 2025, during which QuantumScape will present its first commercial prototype to automakers. A successful roadshow could drive a surge in orders, fueling the growth story.
c. Risks
- Technological Risk: The solid‑state battery technology has not yet been proven at scale. Any technical setbacks could erode investor confidence and delay production.
- Regulatory & Supply Chain: Securing rare‑earth supply chains and meeting safety regulations will be critical. The author points out that the company is already working with Cobalt Corp and Lithium Americas to mitigate these risks.
3. Putting It Together – How the Author Sees the Portfolio
The author positions C3 AI as a “growth‑driven, high‑margin enterprise software play” and QuantumScape as a “high‑risk, high‑reward hardware play.” Together, they provide a diversified exposure to two very different catalysts: software scalability versus hard‑tech disruption.
The article recommends allocating roughly 60 % of a dedicated “growth” portfolio to C3 AI and 40 % to QuantumScape, given the former’s more mature business model and the latter’s higher risk–reward profile. For a broader portfolio, the author suggests keeping these stocks in a 5–10 % allocation to limit volatility.
4. How to Buy – Practical Steps
- Research & Due Diligence: Start with the company filings (10‑K/10‑Q) to verify the revenue growth and partnership claims. The author links to the latest earnings call transcript for C3 AI and a Q3 2025 investor presentation for QuantumScape.
- Brokerage Account: Both stocks are listed on NASDAQ, so any standard brokerage will have them. Pay attention to the trading volume—C3 AI has an average daily volume of ~500k shares, while QuantumScape trades ~150k shares, which may impact bid‑ask spreads.
- Dollar‑Cost Averaging: The author recommends buying in increments over a month, especially for QuantumScape, to mitigate short‑term price swings.
5. Bottom Line – Why the Article Matters
While the original Fool article is a concise recommendation, the underlying logic is built on macro‑trends (AI adoption, EV battery revolution) and firm‑specific catalysts (partnerships, production milestones). By unpacking these elements, investors can see the “why” behind the picks, assess the upside potential, and weigh the risks in a structured way. The key takeaway: if you’re willing to take on a higher risk‑reward play (QuantumScape) alongside a more established high‑growth software company (C3 AI), this portfolio could position you for significant upside over the next 12–18 months.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/08/27/my-2-favorite-stocks-to-buy-right-now/ ]