This Stock will be my Next Palantir‼️
Summary
Jeremy provides a comprehensive review of recent earnings reports, focusing on the divergence between revenue growth and ballooning expenses in the tech sector. He categorizes the current market environment as 'busy times,' noting that while some companies like Amazon and Google are successfully leveraging their infrastructure spend to accelerate cloud growth, others like Meta are struggling with expense management. He highlights a critical trend: the aggressive capital expenditure (CapEx) from 'Mag 7' companies is directly flowing into the pockets of chipmakers, making them the most reliable short-term plays.
Jeremy breaks down the performance of several key holdings and market leaders:
Mentioned Stocks
Reasoning: Jeremy calls Amazon an 'always a buy' regardless of history or current tech bubbles. He highlights massive AWS acceleration (28% growth) and the highly profitable advertising business. He is not surprised by its move to new all-time highs and believes the CapEx is justified by clear segment growth.
Reasoning: Jeremy is concerned that Zuckerberg's spending is 'out of hand,' with expenses outstripping revenue growth. He warns the stock could drop to $350. While he believes in Zuckerberg long-term, he expects the situation to get 'messy' in the short term.
Reasoning: Jeremy maintains that the stock is a buy at $65.50. He loves the stability of the 'ATM machine' business model and the high dividend yield. He predicts the stock will reach $100 and potentially $200 long-term.
Reasoning: Jeremy identifies AMD as a primary beneficiary of the massive CapEx from Google, Meta, and Microsoft. He states that investors should own one of the big three chip stocks (AMD, NVDA, or MU) as they will be 'raking in money' for the next 12-18 months.
Reasoning: Jeremy considers the stock an 'absolute banger' despite its recent 15% drop. He notes 43% revenue growth and a doubling of EPS. He sets a 5-year target of $50 and a long-term target of $100, viewing it as a legitimate threat to major traditional banks.
Reasoning: Despite an A+ earnings grade and incredible 63% Cloud growth, Jeremy states the stock is 'no longer a buy' for him. He views it as a hold or sell at current price levels as it is not the best long-term opportunity compared to others.