I Just SOLD all of this stock‼️
Summary
Jeremy provides a comprehensive review of his recent portfolio moves, centered on a bullish outlook for specific consumer turnarounds and a cautious stance on the software sector. He highlights Estee Lauder as a primary success story, noting that their decision to forgo a major merger and focus on organic growth in markets like China is driving a significant jump in profitability. Jeremy predicts that Nike is the next major turnaround play, currently undervalued in the $40 range but poised for a move toward $100+ as sales recover.
A significant portion of the video is dedicated to Jeremy's decision to sell Adobe at a loss. He expresses concern that Adobe, similar to PayPal, will face single-digit growth and declining P/E ratios due to disruption from large language models (LLMs). Conversely, he remains bullish on enterprise software like Service Now and Salesforce, which he views as AI beneficiaries rather than victims. Jeremy also emphasizes his high conviction in Celsius and American Express, citing their strong growth rates and resilient customer bases.
Mentioned Stocks
Reasoning: Jeremy views Nike as the next major turnaround play following Estee Lauder. He expects the stock to rise from the $40s to $70-$80 within a year and eventually reach $100+.
Reasoning: Jeremy highlights the massive compounding growth potential, noting that even his bear case projections likely outperform the S&P 500.
Reasoning: Similar to Service Now, Jeremy believes Salesforce is an AI beneficiary that Wall Street is currently misunderstanding due to disruption fears.
Reasoning: Jeremy sees a very successful turnaround underway with revenue growth boosting operating income substantially. He specifically likes the cancellation of the merger talks with Puig and believes the stock is heading toward $200+.
Reasoning: Jeremy is building a small position in this speculative stock as he sees a significant turnaround in their business model toward profitability.
Reasoning: Jeremy believes the company is disruption-proof regarding AI and has an excellent business model that captures high-income customers as they age, trading at a fair 17x forward P/E.
Reasoning: Jeremy considers Service Now to be an AI beneficiary that is deeply integrated into company workflows, unlike other software stocks he sold.
Reasoning: Jeremy trusts the CEO's strategy of sacrificing short-term revenue to boost margins and notes the company is trading near its cash value with no debt.
Reasoning: Jeremy sold for a 20% loss because he believes the company is facing a long-term growth slowdown to single digits and fears disruption from LLMs will keep the valuation low, similar to PayPal.