Our buy-the-dip call last week played out well, with major indices rebounding sharply and small caps jumping nearly 6%. Nvidia, the biggest company by market cap, lagged as competition concerns and Michael Burry’s comments weighed on sentiment, but the broader market rallied across sectors, including a rebound in crypto stocks. Precious metals surged too, with gold up nearly 4% and silver a whopping 13%.

Markets head into December, historically one of the strongest months of the year, with investors looking for confirmation that improving inflation trends and easing financial conditions can support a year-end rally. This week brings key reads on manufacturing, services, trade, and inflation, alongside closely watched labor data and earnings. Treasury auctions, central-bank remarks, and geopolitical developments will also help shape sentiment into the final month of 2025.

Before diving into this week’s pick, here’s a snapshot of how our picks over the last two months have done since posting them :

Prologis is a global juggernaut in logistics real estate, operating as an industrial REIT (Real Estate Investment Trust) with a massive portfolio of 1.3B sq ft across 20 countries. Its properties include warehouses, distribution hubs, and last-mile delivery facilities used by major e-commerce, retail, manufacturing, and transportation companies. The company benefits from long-term leases, high occupancy rates, and strong demand from tenants like Amazon, FedEx, and Home Depot.

Prologis has delivered steady mid-single-digit annual revenue growth following a sharp increase in 2023. The stock trades at a premium P/E of ~37, higher than peers, but Prologis also holds the clear leadership position in the sector. Its balance sheet is solid, though long-term debt is an area for improvement. Operating cash flow has grown at an impressive ~18% CAGR over the past three years, and the company is at a reasonable 2.2× price-to-book value. A major tailwind is future rate cuts, as lower short and long-term interest rates will decrease capital costs and boost asset values.

PLD just broke out above a key resistance level of $128 after being range-bound between $92 and $127 for over three years. This move is the continuation of a new uptrend since it reported strong earnings in October. If momentum continues, $140 is a solid next price target. If taking a short-term trade, placing a stop-loss at the $124 level is wise to protect against any sharp reversals or a failed breakout attempt back into the old range.

Recursion Pharmaceuticals is an AI-driven drug discovery company that uses automated labs, machine learning, and one of the world’s largest biological datasets to identify and develop potential treatments faster than traditional methods. Its platform, “The Recursion OS”, allows it to run millions of biological experiments and map disease biology at scale. Pharma giants like Roche, Bayer, and Sanofi are now using Recursion’s tech to accelerate early-stage drug programs.

With over 60 petabytes of biological data, Recursion’s edge comes from combining automated labs with powerful AI models, allowing it to test and analyze far more biological data than traditional biotech companies, and aiming to shorten the drug discovery and development cycle by 90%. This is powered by the largest supercomputer in the industry for biological data analysis, BioHive-2, which runs on Nvidia H100 GPUs.

Recursion reported revenue of $5.18M in its Q3 results, and holds ~$785M in cash that will provide runway through 2027. It has about $500M in milestone payments across its partnerships with pharma companies, but is a moonshot play. Most of its drug programs are still in Phase 1 or 2 trials, meaning consistent and predictable revenue is likely years away.

Recursion is still early-stage and highly speculative, and biotech stocks at this phase tend to be extremely volatile. Clinical trial delays, disappointing data, or partner exits could significantly impact the stock. Competition in AI-powered drug discovery is intensifying, and Recursion must prove that its platform can translate AI insights into successful real-world drug outcomes. Investors should size positions carefully and expect large swings in sentiment.

Ali is a full-time equity trader and investor based in Dubai, and the founder of First Mile Investing. He left his corporate career in 2024 to pursue his passion for the markets. He founded First Mile Investing to help beginners take their first confident steps into investing, with the goal of making the process less intimidating, more accessible, and empowering for everyone.