I Bought These 2 Stocks Again During the Crash. Here's Why
Summary
CouchInvestor provides a portfolio update following a volatile week where the portfolio dropped 9.39%, though it remains up over 27% year-to-date. CouchInvestor addresses market fears regarding new Chinese AI models like Kimmy K3, explaining that while these models are highly efficient, their success actually validates the massive demand for compute. CouchInvestor believes that cheaper AI tokens will expand the entire ecosystem, benefiting infrastructure players like Nebius and major cloud providers. CouchInvestor advises investors to ignore short-term macro noise regarding Fed rate hikes and focus on high-quality companies.
CouchInvestor highlights the upcoming earnings season as a critical catalyst for the market. CouchInvestor is particularly focused on Alphabet's cloud growth and record backlog, as well as Intel's progress in the foundry business. CouchInvestor also discusses strategies for handling market dips, such as using LEAPS for leverage on core positions and maintaining cash to buy high-conviction names at lower entry points. CouchInvestor emphasizes sticking to a long-term research-based thesis rather than reacting to social media sentiment or temporary flash crashes.
Mentioned Stocks
Reasoning: CouchInvestor added 30 shares at $68.36. CouchInvestor states a strategy to continue accumulating shares under $80, especially since CouchInvestor previously took profits at significantly higher levels ($87 and $114) and is now buying back those shares at a lower price.
Reasoning: CouchInvestor notes that Intel is down 33% from its recent highs, which could be a buying opportunity. CouchInvestor argues that if Intel's turnaround in the foundry business (18A and 14A) succeeds, the company could eventually be worth $1 trillion.
Reasoning: CouchInvestor believes Alphabet can become the most valuable company on the planet. CouchInvestor highlights that Google Cloud revenue is accelerating, margins are rising, and the backlog reached a massive $467.6 billion last quarter, suggesting strong upcoming earnings.
Reasoning: CouchInvestor identifies this as the highest conviction name in the portfolio. CouchInvestor added 10 extra shares at $181. CouchInvestor believes it will be a $100 billion plus company in the future because it benefits from the overall growth of AI tokens and compute demand, regardless of which specific AI model wins the market.
Reasoning: CouchInvestor is waiting for a better entry point, stating that everything around $70 or just under $80 would be ideal. CouchInvestor believes the market is currently asking questions about Netflix's valuation and that there is no rush to buy more until those questions are answered or a lower price is reached.
Reasoning: CouchInvestor expresses high confidence in Uber's leadership and strategic moves, such as the Delivery Hero acquisition. CouchInvestor has added a lot to this position recently and views it as a core holding that remains super competitive.