Three Top Stocks To Buy Today
Summary
Joseph provides a comprehensive market outlook, suggesting that while many tech giants like Microsoft and ASML have already surged, dislocation still exists for a select few. Joseph emphasizes a strategy of buying high-quality companies when sentiment is negative and fundamentals are misunderstood by the broader market. Joseph points to Joseph's past successes with Google and Amazon as evidence that buying during periods of negative narrative leads to outsized returns.
Joseph identifies three primary stocks of value today:
Finally, Joseph addresses a report from SemiAnalysis regarding Google's Gemini, disagreeing with the claim that Google has zero chance of leading in AI again. Joseph also highlights a 'fail of the week' involving Keith Rabois, criticizing the investor's dismissive attitude toward stock-based compensation as a real expense.
Mentioned Stocks
Reasoning: Joseph views Meta as a high-conviction play because Mark Zuckerberg is investing heavily in AI to bypass the control of Apple and Google. Joseph states that owning the infrastructure layer makes Meta 'full stack' and less reliant on external platforms. Joseph also notes that the downside is protected because the massive AI investment could be converted into a profitable neocloud business if the primary AI goals are not met.
Reasoning: Joseph defends Google against a SemiAnalysis report claiming Gemini is 'cooked.' Joseph argues that Google has already proven it can build state-of-the-art models and should not be ruled out. Furthermore, Joseph emphasizes that Google Cloud is becoming a 'deep moat' business with 35% operating margins and potential to double in size, which provides strong value even if their AI models aren't always number one.
Reasoning: Joseph argues that Netflix is currently a unique value because the market is reacting to a false narrative about declining engagement. Joseph highlights that total engagement rose 2% year-over-year and that the decline in watch time per user is simply due to growth in international markets where TV consumption is naturally lower. Joseph remains bullish due to Netflix's rising margins, strong free cash flow, and aggressive share buybacks.
Reasoning: Joseph recently purchased $24,000 worth of Uber stock. Joseph argues the autonomous vehicle (AV) risk is fully priced in and misunderstood. Joseph notes Uber is 600 times larger than Waymo in terms of weekly rides and possesses global network density that AV competitors cannot easily replicate. Joseph believes Uber can eventually integrate AV technology into its own network and predicts a price target of $150-$160 per share in 3-4 years.