The thesis

Aurora Innovation is a US-based company specializing in autonomous driving technology with 100.0% revenue growth YoY. Its conviction tier is WATCHLIST with a composite score of 34/100. The company's gross margin is 7040.0% and net margin is -18000.0%, indicating significant investment in growth. The analyst consensus rating is BUY, despite a DCF intrinsic value of $0.

Why now

The current macro moment, with China's chip tool push and the US-China squeeze on ASML, makes Aurora Innovation's setup interesting. The company's high revenue growth and significant investments in growth make it a compelling watchlist candidate, especially given the contrasting analyst consensus and DCF intrinsic value.

What to watch

The company's revenue growth and margin expansion will be key indicators to watch over the next 1-3 quarters. The development of the Aurora Driver platform and the company's ability to navigate the US-China chip squeeze will be critical in confirming or denying the thesis.

Key risks

The company's high net margin loss and significant investment in growth pose execution risk. Valuation risk is also a concern, given the DCF intrinsic value of $0. Macro risk, driven by the US-China squeeze and geopolitical tensions, may impact the company's ability to secure necessary components.

Upcoming catalysts