Multibagger Selection: Muse Spark 1.1's picks
Muse Spark 1.1 picked LUNR, PL, RDW, SOUN, BBAI with a twelve-month thesis, measured against SPY at each checkpoint.
| Experiment | Multibagger Selection |
|---|---|
| Model | Muse Spark 1.1 |
| Prompt version | multibagger-selection-v1 |
| Asked | |
| Horizon | 12-month |
| Benchmark | SPY |
| Status | Being measured |
The picks
| Rank | Symbol | Return | Confidence | vs benchmark | Called right |
|---|---|---|---|---|---|
| 1 | LUNR | — | 72% | — | — |
| 2 | PL | — | 75% | — | — |
| 3 | RDW | — | 70% | — | — |
| 4 | SOUN | — | 68% | — | — |
| 5 | BBAI | — | 60% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | -1.54% | -1.22% | 1.04x | 0 |
The model's market view
Small-mid caps in space, defense AI and voice AI have sold off 40-70% from 2026 highs despite accelerating revenue, creating valuation asymmetry. Q2 2026 showed revenue acceleration, gross margin expansion and backlog records for several names. Liquidity remains strong with daily dollar volume >$20M. Catalyst-rich 12 months include lunar missions, defense contract conversions, and AI platform rollouts.
Why each pick
LUNR
Intuitive Machines flipped to positive gross profit with Q2 2026 revenue $206.2M up 309% YoY and gross profit $35.9M for 17.4% margin. Backlog $1.8B vs $213M at end 2025 provides 4x FY2026 revenue coverage. Management guided FY2026 revenue $900M-$1B vs $210M in 2025. Cash $367M. Depressed price after miss vs inflated expectations creates 3x potential if backlog converts and IM-3 succeeds.
PL
Planet Labs delivered Q2 FY2027 revenue $116.05M +58.2% YoY beating by $11M, with fifth consecutive EPS beat and adjusted EPS $0.02 vs -$0.02 expected. Defense and intelligence +90% YoY. Backlog $814.9M with ~50% in next 12 months. Fourth consecutive quarter meeting Rule of 40. Stock down 64% in 6 months despite inflection, creating asymmetry.
RDW
Redwire Q2 2026 revenue $117.07M +89.6% YoY beating $108M estimate, gross margin 27.8% up from 22.3% YoY. Reaffirmed FY2026 guidance $450-500M. Defense tech growth and Edge Autonomy acquisition integrating. $2.23B market cap with 14.5M average volume implies institutional accumulation. Space infrastructure beneficiary of Golden Dome and national security spend.
SOUN
SoundHound AI Q2 2026 revenue $61.9M +45% YoY, GAAP gross margin 45.1% vs 39% prior, non-GAAP 58.4%. Raised FY2026 guidance to $230-260M. TTM revenue $203.2M with 3Y CAGR 77.72%. Despite -75% YoY stock decline, fundamentals accelerating with Kia voice AI rollout and agentic AI platform OASYS. Cash $203M.
BBAI
BigBear.ai trades near 52-week low $2.12 at $2.15 despite $456.6M cash and $376M backlog as of Q3 2025, and $269.6M backlog as of Q2 2026. Recent Ask Sage acquisition for $250M adds $25M ARR in 2025. Defense AI demand tailwind with new contracts and autonomous systems. Q2 2026 revenue $36.7M +13% YoY showing turnaround after -18% declines in 2025. Market cap $1.12B vs cash $456M gives low enterprise value.
Other models on the same run
| Model | Picks |
|---|---|
| Grok 4.5 | INOD, NRIX, CAPR, PVLA, REPX |
| DeepSeek | ONDS, CRMD, PRE, RZLV, AXTI |
| GPT-6 | CRMD, EOSE, AMPX, LUNR, SERV |
| Gemini 3 Pro | ACHR, SMR, JOBY, RDW, NNE |
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