I might buy a NEW STOCK‼️
Summary
Jeremy discusses the commencement of earnings season, expressing optimism for Jeremy's public account to reach $5 million. Jeremy provides a detailed comparison between Netflix and Tesla, noting that Netflix shows consistent revenue growth, improving margins, and strong free cash flow, whereas Tesla's metrics have stagnated or declined. Jeremy views Netflix as an execution-based investment and Tesla as a speculative story based on unfulfilled promises.
Jeremy also previews upcoming earnings for several key holdings, predicting strong results for American Express and Google, though Jeremy expresses concern about Google's capital expenditures. Jeremy introduces Occidental Petroleum as a major new investment interest, citing its valuation and long-term potential in carbon capture.
Mentioned Stocks
Reasoning: Jeremy argues that Elf Beauty continues to be a top-performing stock in Jeremy's portfolio. Jeremy states that the stock is up 62% in the last seven weeks and Jeremy believes it is headed significantly higher in the coming years.
Reasoning: Jeremy states that AMD has transitioned from being hated to being a 'money duplicator' in the public account. Jeremy argues that market sentiment on stocks can change extremely fast, as seen with AMD's massive turnaround over the last 15 months.
Reasoning: Jeremy argues that American Express will likely report a triple beat. Jeremy states that the business model is incredibly stable due to its high-net-worth customer base and recurring membership fees. Jeremy notes that it is Warren Buffett's second-largest holding, highlighting its consistency.
Reasoning: Jeremy states that Jeremy is uncertain about ServiceNow's guidance. Jeremy argues that enterprise software budgets might be under pressure as companies experiment with AI tokens instead of traditional platforms. Jeremy expresses concern that analysts will be aggressive if the guidance misses expectations.
Reasoning: Jeremy argues that Google is a strong performer, with Jeremy's position up over 120%. Jeremy states a triple beat is likely but warns that high capital expenditure (Capex) forecasts could spook investors. Jeremy believes that if Capex is modest, the stock will go higher.
Reasoning: Jeremy argues that Tesla is a 'hope buy' that consistently disappoints. Jeremy states that Tesla's margins and free cash flow have trended downward while revenue has stagnated. Jeremy points out that Tesla failed to become a mass-market automaker, achieving only 3% US market share despite promises of much higher dominance.
Reasoning: Jeremy argues that Netflix is a story based on execution rather than hope. Jeremy states that Netflix has consistent or uptrending margins and free cash flow per share. Jeremy mentions investing fresh money into the stock because it is a high-conviction play with a falling historical PE ratio.
Reasoning: Jeremy states that Jeremy is likely to 'load the boat' on this stock. Jeremy argues that Occidental Petroleum is a strong value play after a multi-year down cycle. Jeremy notes that an entry point around $55 is attractive and that the company is a leader in carbon capture, which could provide massive long-term upside. Jeremy sees a 70% chance of doubling Jeremy's money over five years.