Remember Our Sleep Number Pick? Three Months Later, It’s Up by 40%

December 12, 4:55 pm

When we highlighted Sleep Number (SNBR) as our "Stock of the Week" three months ago, the stock was trading at $14.30. At the time, we emphasized the company’s alignment with the growing longevity trend, its innovative AI-powered products and promising alternative data insights. Since then, Sleep Number’s stock has seen remarkable volatility, surging to $19.50 within a week, dropping to $11.50, and now rallying to $20.20.

This unexpected volatility reinforces an important lesson: patience and conviction are essential when investing based on alternative data insights.

Promising Alternative Data Insights

In our original article, we highlighted Sleep Number’s relevant alternative data insights. When we originally pointed out web traffic growth, app downloads, and social media engagement as positive indicators, it hinted at a growing wave of consumer interest.

These data points are particularly relevant for a company like Sleep Number, which operates at the intersection of health and technology and leaves a significant digital footprint. Web traffic growth suggests that consumers are actively researching and considering its products, a leading indicator of potential sales. Increased app downloads highlight engagement with the brand’s products, reinforcing customer loyalty and revenue opportunities through its AI-powered smartbeds. Meanwhile, social media metrics provide a glimpse into the company’s brand strength and its ability to connect with a younger, health-conscious audience.

Together, these alternative data signals painted a picture of a company that was building momentum, even if traditional financial metrics, such as quarterly revenue, lagged behind. By focusing on these non-traditional indicators, investors can gain an early edge in identifying trends that the broader market has yet to price in.

The Case for Staying the Course

The recent climb to $20.20 validates our original thesis and highlights why patience is critical. Investors who acted on our recommendation at $14.30 and held through the ups and downs have enjoyed a return of approximately 41% in just three months. This underscores a vital takeaway:

- Alternative data insights often identify opportunities before the market catches on.
- Patience is a necessary component of realizing gains from these signals.
- Short-term volatility shouldn’t deter long-term conviction, especially when supported by strong alternative data.

This outcome reinforces the value of sticking with well-researched stock picks, even when the short-term journey feels uncertain. Sleep Number’s alignment with health and longevity trends, paired with positive alternative data signals, has proven to be a winning combination for investors willing to stay the course.

Final Thoughts

As we wrap up Sleep Number’s journey, it’s worth pivoting to our latest "Stock of the Week" pick: Coinbase (COIN). The cryptocurrency exchange has seen its share of volatility but remains a standout in the evolving digital asset space. Coinbase’s innovative platform, coupled with increasing institutional adoption of cryptocurrencies, positions it as a company to watch.

In our most recent article, we highlight that alternative data signals for Coinbase point to significant potential. From rising web traffic on its trading platform to increasing hype and positive sentiment on social media, the indicators suggest momentum is building. As with Sleep Number, patience will be key. Early signals often precede broader market recognition, and Coinbase’s long-term prospects remain compelling for those willing to stay the course.

Whether it’s a stock aligned with the longevity trend or one leading the charge in digital finance, the combination of alternative data and patience continues to yield rewarding opportunities.

Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial or investment advice. All investments involve risk, and you should conduct your own research or consult a qualified professional before making any investment decisions.

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