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Here’s What is Happening with Nextnav (NN)

Laughing Water Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Class A interests in Laughing Water Capital returned about 2.5% bringing year-to-date returns to 11.1%. The SP500TR and R2000 returned 4.3% and -3.3% in the second quarter and 15.3% and 1.7% year-to-date, respectively. The strength of the market is now concentrated in a small number of mega-cap stocks. The SP500’s “artificial intelligence”-related equities increased 14.7% during the second quarter, while the overall SP500 fell 1.2%. The firm does not own any of these stocks and focuses on the hidden corners of the market. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Laughing Water Capital highlighted stocks like NextNav Inc. (NASDAQ:NN), in the second quarter 2024 investor letter. NextNav Inc. (NASDAQ:NN) provides next generation positioning, navigation, and timing (PNT) solutions. The one-month return of NextNav Inc. (NASDAQ:NN) was 2.53%, and its shares gained 175.42% of their value over the last 52 weeks. On July 25, 2024, NextNav Inc. (NASDAQ:NN) stock closed at $8.18 per share with a market capitalization of $1.002 billion.

Laughing Water Capital stated the following regarding NextNav Inc. (NASDAQ:NN) in its Q2 2024 investor letter:

“NextNav Inc. (NASDAQ:NN) – Nextnav is our owner of wireless spectrum that is building a next-gen GPS system which is presently not economically viable. In April, Nextnav filed a petition with the FCC asking to swap their existing owned spectrum for similar but contiguous spectrum, and then to repurpose this spectrum for use with 5G. This 5G spectrum could then be monetized by some sort of partnership or lease agreement. It is impossible to handicap how this process will play out, but examining the pieces on the chess board suggests that it is highly likely that Nextnav’s petition will be granted in one way or another in the not-too-distant future.

In brief, the present GPS system has serious shortcomings. This has been known for years, but has become a higher priority issue as the conflicts in Ukraine and Israel/Gaza have demonstrated that the existing, satellite-based GPS system can be easily hacked, spoofed, or otherwise tricked. Additionally, it is no secret that Russia and China have been developing “satellite killing” missiles that could destroy the global GPS system – or that part of it covering the U.S. – in a conflict. The GPS system is not only responsible for powering Waze and other apps that make daily driving easier. It also powers the clocks that tie together the power grid and the financial system, allows for precision agriculture and weather forecasting, and is the backbone of emergency response systems. Essentially, every agency that relies on GPS is anxious to see the development of a backup system, but – unsurprisingly – none of these agencies want to pay for this system…” (Click here to read the full text)

A woman talking on her cellular phone, with a map of a metropolitan area in the background.

NextNav Inc. (NASDAQ:NN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. NextNav Inc. (NASDAQ:NN) was held by 14 hedge fund portfolios at the end of the first quarter, compared to 16 in the previous quarter, according to our database. NextNav Inc. (NASDAQ:NN) reported first-quarter revenue of $1 million compared to $830,000 in Q1 2023. The year-over-year increase was due to a rise in recurring service revenue from technology and services contracts. While we acknowledge the potential of NextNav Inc. (NASDAQ:NN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed NextNav Inc. (NASDAQ:NN) and shared Laughing Water Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

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