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Tariff talk might be making headlines, but with a 49% surge in July alone, this AI-powered security stock is doing something way more interesting. I’ve got it at the top of my watchlist this morning.

TODAY’S TOP ALERT! 

Knightscope, Inc (Nasdaq: KSCP)

👉  KSCP is TODAY’S #1 ALERT 👈

Good morning, Folks,

(If you’re a Bullseye member, stay tuned - my top options pick drops at 9:15am EST!)

Stock futures are down in response to President Trump’s 30% tariff threats to the EU and Mexico over the weekend, but the response is much more mild than I might have expected.

As I explained last night, I think investors still have April fresh in their minds and are hesitant to panic-sell in response to the President's dealmaking.

So while tariffs will be the talk of the town, I’m expecting the market response to stay muted, at least until we get closer to the August 1 deadline.

I’m also expecting another great week for my “tactical trade” ideas. Over the past two weeks, 9 of my 11 total ideas have made double-digit intraday gains, and the other two closed in the green.

Friday’s idea hit a 23% peak before closing the day up 9%.

Right now, I’m dialed into a momentum play that’s up a whopping 194% since the markets came out of their early April trough.

The stock has the S&P 500’s recovery more than seven-fold, and if you’ve been following along, you know I’ve had great success lately with momentum plays that have bested the S&P’s bounce-back.

Go ahead and pull up Knightscope, Inc. (KSCP) and get it on your radar right away.

As you can see, the stock actually trended down a bit in June, but it’s now up 49% so far in July.

It broke through resistance levels near $5.50 and $6.50, and it briefly cleared $7.50, establishing a higher high.

It’s now in a bullish reversal pattern, and if it holds above $7, it could signal further upside to $8.50–$9.00.

With positive pre-market action, I’m watching to see if we get a surge today.

👉  KSCP is TODAY’S #1 ALERT 👈

Knightscope, Inc. (KSCP) is a Silicon Valley-based robotics and AI company with a vision to transform the public safety industry in the U.S.

In fact, it is already doing so, with nearly 10,000 machines-in-network deployed across the country in venues such as airports, casinos, college campuses, public parks, and hospitals.

Established in 2013 in the wake of the Sandy Hook school shooting, the company is widely considered the “first mover” in security robots, and over the years, its clients have included major airports, corporations, and now even the U.S. federal government.

To date, its robots have operated 3+ million hours, working 24 hours a day and 365 days a year. It turns out robots don’t care much about holidays!

A January 2024 article in Forbes described KSCP as the “current market leader” in security bots.

According to KSCP, the goal of its robots is not to replace police officers or security guards, but to augment them with “superhuman capabilities” such as facial recognition, thermal scanning, people detection, and automatic license plate recognition.

The company offers a variety of robots, including stationary towers, entry scanners, and mobile robots for indoor and outdoor use.

KSCP is a dynamic company, and almost as impressive as what it has accomplished is where it sees itself going…

Its vision includes deploying 1 million networked machines — including “autonomous security robots, blue light emergency towers, e-phones, call boxes, aerial drones, autonomous patrol vehicles, quadrupeds, humanoids and other future technologies” — leveraging physical AI to transform the security landscape.

The company even ran an impressive marketing program that included a “robot roadshow” that made over 100 stops nationwide to allow prospective clients to experience Knightscope’s technologies up close.

[Check out YouTube’s “Robot Roadshow: Pod Landing in Los Angeles” for a cool video showing a roadshow stop in Los Angeles.]

KSCP operates on a Machine-as-a-Service (MaaS) model, which generates recurring revenue through subscription-based contracts for its robots and services.

On the financial front, on May 14, KSCP reported Q1 2025 net revenue of $2.9 million, up 29% from Q1 2024, and a gross margin loss of 23% compared to 64% in Q1 2024.

The company also reported $12.7 million in cash and cash equivalents at the end of the quarter, up 14% from the end of Q4 2024.

KSCP is increasingly angling for government contracts…

In late April 2024, it presented to members of Congress at the Hart Senate Office Building and announced compliance with the Buy American Act, which will open the company to considerable federal funding.

The next week, KSCP revealed that one of its robots “is patrolling on a U.S. Department of Veterans Affairs property. …. opening the door for new stakeholders to begin evaluating the use of Knightscope technologies among other federal departments and agencies.”

This January, it partnered with the U.S. Air Force “for a Phase I SBIR contract to streamline and improve Air Force Installation Security procedures and outcomes.”

The partnership “aims to leverage Knightscope's Autonomous Security Robots (ASRs) to improve the safety of critical defense assets and personnel while solving the Air Force's most urgent security challenges.”

And in February, KSCP received full FedRAMP® authorization through an ATO (Authority to Operate), enabling “broader deployment of the company's autonomous security solutions across federal agencies.”

It established operations in D.C. that same month and began working with strategy firm Washington Office to “expand Knightscope's capacity to deliver advanced security solutions to the federal government.”

In a big move in April, KSCP secured a new 33,000 square foot headquarters in Silicon Valley that more than doubles the company’s previous space, “enabling accelerated growth across engineering, manufacturing, and client support.”

That same month, it announced $3.2 million in new sales, beating its Q1 revenue in a single month. In June, it revealed another $1 million in new contracts.

And yet again on July 2, KSCP announced another $1 million in new contracts. It also teased “meaningful traction in Washington, D.C.” including “dozens of engagements with public officials and stakeholders.” It has been “invited back for a hearing on certain technologies to occur in July.”

As mentioned, the stock has surged since April, but analysts still see considerable upside from here:

Note that those price targets were all reiterated in the past two months.

As you do your own research on KSCP, check out this impressive investor deck (which I highly recommend checking out) and check out the company’s website and its 52,600-follower X account.

As always, be sure to approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose. 

Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration.

Bottom line: KSCP has been in a 49% tear so far in July. It broke through multiple resistance levels and established a higher high.

With the stock green in the pre-market, KSCP is my #1 alert as I watch for a surge today.

To Your Success,

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