The Best Buying Opportunity I've Seen in Months Is Hiding Here

Hey everyone and welcome back to another video for today. So in today's video, unfortunately we did not have a green Friday going into the weekend. We just have to follow up on what has happened on Thursday. We of course have some news regarding Meta, regarding Netflix, the earnings, Nebus as well. So a lot to discuss in today's video, but as of right now, at the time of recording this video, you can see that well we are still experiencing quite a lot of red even though it doesn't really matter or make sense, right? Meta being down 2.6% 6%. You'll hear about the news in a bit. Google down 2.7. Microsoft is down. Micron does catch a little bit. We've seen some names catch a bit, right? If you look at the semiconductor names, Micron that's up a little bit. We have Marvel that's up a tiny bit. Qualcomm as well. With regards to the Neocloud, we do have Nebus that's up 6% today. There is a very specific reason why that is. So, we're going to talk about that. Then, as for the rest, who's up the most? A is up 6.8. Nebus 6, Zeta is up, Dolingo is up, a Voyager here, I'll have a specific video on that pretty soon, Micron, United Health, Rocket Lab is catching a little bit, Cororeweave, and then yeah, on PayPal, actually, PayPal board apparently did reject the offer from Stripe. They think it is way too low, so I guess they maybe want an a bit higher. If that were the case, it would only come in after the earnings report, after PayPal shows that look, branded checkout is actually recovering. Things are looking a little bit better. If that's not the case, well, then they can try and until tomorrow and find another buyer or just not sell. That's also a possibility. Now, in today's video, of course, buy the dip. Are there opportunities? Yes, in my opinion, there are many opportunities. Not just because we are seeing now a couple of days of red. There were opportunities before right there were names like a meta for example even in Google talked about that names that are and were attractive before. There are certain names that are down 50% 40% maybe even more than 50% over the past couple of weeks definitely from their 52- week highs which I think for most of them was end of May start of June. Now just because a name like that a Rocket Lab and AS right I'll take those two scenarios because one I own Rocket Lab I don't own AS but both of them have been basically split in half maybe even more now in all honesty Rocket Lab shouldn't have been at $150 per share or so and AS shouldn't have been at $133 per share even today I find it super expensive on a company that doesn't generate much revenue has a lot of execution risk And we've seen what has happened over the past couple of months. Actually, also the fact that they always say, "Oh, what? We have 60 partners, three billion subscribers, right? That's the addressable market right now." That that doesn't mean anything. Three billion subscribers. Like, if you're a subscriber of Verizon or or whatever, if they tell you, "Oh, you have to pay 10 extra dollars per month or $15 extra per month and you'll get satellite connection." First of all, most of us that live in cities, we don't really need this. We don't need it at all, actually. So, this these numbers don't make any sense. Okay, but that's one. Then you have the the usual quantum names. These types of names, they're down also 50%, 40%, doesn't really matter. They should have never been worth. Let's say if they were worth 20 billion, now they're worth 10 billion. They shouldn't be worth 20. They shouldn't even be worth 10. So these are the businesses where even right now buy the dip buy the doesn't really matter they're not worth much the other companies the companies that are worth a lot and will be worth a lot more because the business today is already showing that okay if you want to pay the premium show me the results and these companies are showing results right a corewave a nebuse these types of companies they're not cheap not cheap at all they still have to show us quite a lot but they're showing us a rocket lab it's not ship at all. They're showing us with Rocket Lab. I'm very bullish. A lot of us are very bullish, but we have to be realistic here. If there is no neutron, well, a big part of the bullsis is basically gone. Neutron is extremely important. We still haven't seen one Neutron launch yet to come. Of course, that said, there are many companies out there will start off with a Netflix because they just reported their quarterly figures. valuation wise very attractive year to date stock is down 24% over the past year stock is down 46% right it's now a company worth 200 and let's call it $90 billion a trailing PE of 21.6 six times a forward one currently of let's call it 20 times PEG ratio right around one now what was the issue with Netflix well with Netflix first of all yes valuation wise you're basically paying what you would be paying for a meta purely from a PE standpoint from a price to free cash flow of course this one is way cheaper there's less about oh data center built out AI chips etc etc it's purely company that's growing steady steally top and bottom lines. The problem with the Netflix right now is that well we started to decline why one was trading at 30 times earnings or so to the Warner Brother acquisition that didn't go through. So, we did have a recovery, but I guess afterwards the market was like, hm, maybe maybe they need to buy a studio. Maybe they need to buy a super big library, right, of IP cuz then they can continue to grow. And then there were some rumors. Roku, yes, no. Lionsgate, yes. No. NBC Universal, yes. No. We don't know. We don't know whether they're really going to go for a Lionsgate or NBC Universal. I think it makes sense. Especially NBC Universal. I think it makes sense. You get the huge IP, you also get a park. And we know how profitable parks are. Just look at Walt Disney. It's an insane uh business. And I do think that Netflix with such a thing, well, the mode just became huge. But now I'm just speculating. And so if we have a look at the Q2 results, we have a slight miss in revenue. We have a beat, a small beat in diluted earnings per share, a slight miss on operating margin and a slight miss, well big miss, but it is explained free cash flow was pressured by higher cash tax payments partially related to the Warner Brothers termination fee. But this is still a business with 33.4% operating margins. Still a business that's growing 13% year-over-year. They've also seen doubledigit growth in each region. UK is up 10%. Europe, Middle East, Africa up 14, LATAM up 21, Asia-Pacific up 16%. With regards to guidance, Q3 guidance a miss across the board here. Revenue, EPS, operating margin, small miss. Growth trends remain healthy, though comparisons reflect back half weighted growth from the prior year. Also, the impact of the World Cup, right? a lot of attention just going towards the World Cup and less to streaming services like a Netflix. Although next year they do have the exclusive streaming rights for the women's World Cup. So that could be a good thing for them. As for a fiscal year 2026 outlook, they narrowed the outlook for revenues. It was a slight miss. Revenue growth now expected between 13 to 14% which is still okay. Operating margin still targeting 31.5%. Advertising revenue, of course, still a 2x increase year-over-year to reach around $3 billion. And here's the thing. When talking about engagement for Netflix, they said the following thing. There is a nonlinear relationship between view hours and business revenue. Different formats optimize distinct pillars of customer lifetime value. Live events, for example, is 5% spent, 1% views. Massive acquisition drivers sparked six out of the top 10 signup days over the last five years. Animation 5% spend 8% views. Longtail engagement anchors driven by patient execution and massive repeat consumption. So here with the live events to me this is something that I've said for many many years now. live events, live sports events is of extreme importance for Netflix, which is exactly why they're doing this more and more. Those are massive acquisition drivers. As for the use of AI, they said that Gen AI scaling has reached over 300 post-production titles. It drives massive speed to market advantages while slashing expenditures. The documentary series American Experiment produced 17 minutes of AI enhanced sequences at twice the speed and half the cost of traditional methods. Here we're seeing how AI is actually a tailwind for a company like Netflix. And they also said all of this is not replacing the person that makes a movie. The human makes the movie but the way he makes it gets enhanced by these technologies, right? But because let's face it, he can now do more with less time and it costs less. They did do something that I never really like is reduce the information shared. So shifting the what we watch report to an annual Q1 release starting in 2027 to align market focus with core financials. They've done this before with subscribers, right? Just focus on margin revenue growth profitability. Okay, fine. I I would still like to see this maybe more. Okay, now we get it once a year. Then the TF French integration seamlessly offering local broadcaster programming inside Netflix France drives higher user engagement at no added plan cost. And if that's successful, they're going to look at other partnerships. As for the gaming segment, they said that Cloud TV gaming monthly active players increased 11x since October. Kids mobile game engagement is up over 600%. As for share buybacks, they believe the shares are cheap, which is why we're seeing record share repurchases of $4.7 billion. And so to me, with Netflix, I own the name. I like the name. It's a quality name. Do I want to buy more of these shares right now? No. Because I'm focused on increasing other names where I don't have a short-term headwind, right? I do still think that Netflix the name right now. There's still some uncertainties especially with engagement especially with acquisition rumors yes or no. So right now I own it. If if we do if let's say a Nebus drops another 40% or so then maybe maybe the Netflix position maybe another position might be the sacrifice that I have to make in order to buy way more Nebus because I do think and I'll explain in a bit that Nebus despite the Kimmy K3 release is going to be an absolute winner. And for those that don't know what I'm talking about, well, look at this. Kim K3 by Kimmy Moonshot is now the number one in the front end code arena with 1,679 points, surpassing Claude Fable 5. Previously, I believe they were placed 18 with the Kimmy. Yeah, right here, Kimmy 2.6. Right now, K3 is the number one out there. Better than Fable 5, better than Chad GPT 5.6. And so here again we have this sort of deepseek moment although not very very well it's not an applesto apples comparison right deepseek back then oo training cheap training but now we are in the age of inference and the whole discussion that's been going on right now is of course high memory prices token prices go up this is expensive that is expensive of course in a world where you need inference to grow because if inference doesn't grow that does that means nobody's building, no apps gets built, no companies gets built, users aren't using anything and then the whole bubble pops and so and that's explained really in short. And so right now when we are seeing these types of models, of course, if Antropic and OpenAI were public today right now, I am almost certain that their stock would be down 50%. But luckily for them, they're still private. Why is that? Because here we have a Chinese company coming out with a model that's clearly better than theirs. Apparently, it's also much much cheaper, more efficient. And guess what? Everybody's saying, "Oh, this is again bare case of this whole AI race." No, it's bearish for these players. It is not bearish for a core. It's not bearish for a Nebus. It's not even bearish for the hyperscalers either because at the end of the day, look at all the models available here. All of these models need to be run somewhere. So it doesn't really matter who's number one for all of these companies. As long as there are users that are coming in, they need to use for example Neb's token factory, right? Then you need the tokens you go. You don't care. Are you using Kimmy? Are you using Cloud? Are you using Grock? Are you using Muse Spark? Doesn't really matter for a company like Nebuse as long as you have customers that use and generate tokens more and more. And guess what happens when the price of a token comes down? Usually what we see is usage go up. And so let's say it costs usually $10 to generate X amount of tokens. Nebus with their acquisition with the software optimization for infrance. They manage to do this for $8. They sell it for nine. The user pays a dollar less. Nebuse makes an extra dollar. That's how they win. Of course, this is explained in simple terms, very very easy to understand. Now, before we continue with the Nebus subject, with the meta subject, of course, if you enjoy this type of videos, hit all the buttons. We really appreciate that. Yes, I am a buyer of Nebus. I'm even a buyer of Rocket Lab purely because I'm trying to buy back all the shares that I sold at a higher price. Still expensive today, but hey, if we drop more, I'm buying this in batches of 15 20 shares or so. So every time we we drop, I can buy more. It's very easy. Also, earning season is starting. So if you want to keep cash on the side, that's completely fine as well because I do believe we are going to have a lot more opportunities over the next coming weeks. So again, enjoy this type of videos, hit all the buttons, really appreciate that. Want to support me even further, do check out the link down in the description and in the pin comment to the top 10 best stocks to buy now or go to full.com/cotinvestor. Thank you very much. Now, Nebus, what did they announce today? Well, $775 million senior secured debt. This is nondilutive structure offers attractive financial terms while fully funding massive hardware investments. It covers more than 100% of the underlying GPU deployment costs. It's secured by deployed high performance GPU clusters and it matures October 31st, 2030, priced at so 2.5%. What did they do? Well, they're converting assets to capital and the 40 plus billion dollar contracted backlog works in their favor here. So, the backlog includes multi-billion dollar long-term delivery contracts with blue chip investment grade tech hyperscalers, of course, Microsoft and Meta. What did they also announce? Well, they successfully delivered the latest planned GPU capacity trunch to Microsoft on schedule, demonstrating stellar operation and supply chain consistency. All of this was heavily oversubscribed. And of course, if this works once, they're going to use it again and again, right? By transforming deployed infrastructure into active growth funding, Nebus has proven a robust mechanism to scale rapidly without diluting equity. They've always said that whenever they're going to need money, they're trying to do this in the smartest way possible that doesn't hurt the shareholder. And here we're seeing yet another example of this to me with Nebus. We've talked about yes it yesterday, right? The so-called new business. You build the data centers, you get the GPUs, we come in with the software solution, you can start generating money. Again, all of this indicates to me that Nebus is accelerating growth. It wouldn't be surprising if they beat all expectations 12 months down the line. And so to me, what is it now? $50 billion or so in market cap. I said it from the start, this is a hundred billion dollar business plus in the future and I think they're just going to accelerate this growth. So wouldn't be surprised to see this back at $300 even this year if we're being honest. Moving on to another very cheap name was cheap before is cheap today. Uber. Uber is acquiring Delivery Hero. The offer price is €41.5 per share in cash. The equity value is 14.8 billion e and the implied multiple here is EV to adjusted EIDA 2027 estimate that's around eight times. So not really that expensive. They expect $1.2 billion annualized synergy potential within 18 months and this is what we're getting. Uber and delivery hero combined is $236 billion in gross bookings. That's more than M1 146 billion. That's more than Door Dash 90 billion and the operational peers combined $59 billion or so. So this combined acquisition will make Uber a juggernaut. Right? You get here 27 markets in Europe, Middle East Africa, 13 markets in Latin America and not 10 markets here in Asia Pacific. This to me will make Uber an even better company, more profitable company, and close to impossible to disrupt. You'll get a global flywheel, creates a seamless platform linking 49 million monthly users, 900,000 active couriers, and 1.1 million worldwide merchant partners. They onboard over 50 million new cross-platform users, upselling single service users into both rides, and it decreases user acquisition cost by over 50%. It unlocks massive Ebida margin opportunities by deploying Uber's proven proprietary dispatch algorithms and marketing toolkits. And of course, with autonomous vehicles, with robotics, this will just become better and better. Now, of course, such an acquisition will take time. They expect the official close to happen in the second half of 2027, of course, pending regulatory approval, etc., etc. And the full integration should happen between 2028 and 2029. So, again, this is something that will take time. But this to me is again Uber positioning itself extremely well in in a spot where again I I don't see anyone disrupting this business anymore. You can say, "Oh, you're crazy. Tesla, way more autonomous vehicles." I don't think so. I think Uber is, first of all, investing a ridiculous amount of money in autonomous vehicles in all of the autonomous vehicle partners. Lots of companies are going to release their own autonomous vehicle fleets. Guess what? Most of them are going to list it on the Uber platform because right now, as you can see, the ecosystem, the distribution for Uber, when you list something on Uber just got even bigger. And guess what? Uber today is down $1.57. It's still trading in the low 70 bucks or so, sitting right at the 50day. On the weekly, we are a bit here in no man's land. The 200 sits at $64. Again, once we reach the earnings report, which will happen at the start of August, I think it's a day after AMD, you will again see how good of a business this is. Yes, I do expect some tailwinds from the World Cup. Moving on to Meta. Meta still extremely undervalued in my opinion. First headline here, Meta plans to hire top Amazon computing executive as it weighs cloud push. Apparently, they're hiring Dave Brown, one of Amazon AWS most senior computing infrastructure executive as it expands its data center uh buildout and ways a cloud push. Brown spent nearly 19 years at Amazon and will report to meta infrastructure chief. Zuckerberg has said building an AI cloud is definitely on the table with companies approaching a meta almost every week for access to AI models or spare compute which is funny because we have another headline that came out today. Metaine talks to lease computing power to entropic in potential 10 billion uh deal. Now you might say okay great but doesn't that also mean that maybe Meta is overbuilding and and maybe they don't need all of the compute? No. I think this is Meta also trying to say that look we are still going to spend a hell of a lot of money in building data centers but if someone is willing to pay us a huge premium to use X% of our compute then okay then I think it's a good deal because this will then fund the buildout of our next data center or or parts of it. I think if the return on investment makes more sense this way and they can do both then why not? Plus purely from a sentiment standpoint I think if they can say that yeah we are licensing or we are dealing with entropic we are building so-called a meta cloud business I think from optics standpoint it's going to be great stock will pop and go even higher but right now I still think that most of the compute goes for their own internal use because well it makes the recommendation system much better it makes the advertising much better time spent on the meta family of apps increases and so that's how they're making of course all of the money. So all in all right now of course again if we go and look at that horrible horrible heat map it's not great. It's not great but I do see here a lot of good companies trading at very attractive prices. Now some people will say but we're only 5% or 2% or whatever from all-time highs for the market. Again time and time again I don't give a damn about the market. I'm not buying the market. I'm buying great companies at excellent prices. That's what I've been doing for many, many years. It's what I expect to do for many, many years as well. It has worked out. And so, yes, good opportunities across the board, generational opportunities, maybe not, but due to opportunities for long-term investors. I'll touch on one specific name here that I bought more recently, not today, not this week or so. An Axon, right? I bought Axon at around $400. It went all the way to $600, $640 or so in a matter of a couple of weeks. Guess what? We're back here at around $500. Makes sense. You cannot go from 4 cannot go up 50% or so. And the reasons why it went up so fast. It's a bit ridiculous. The company is still doing well, still making deals. All of that is great, but it wasn't cheap. It was actually getting very, very expensive. And so here as well, I'm happy that we're going back down. Am I a buyer here at $500? No. I would like to be back in the 400s in order for me to continue to build out that position because if we're being honest, I rather still buy a palenteer a little bit at 130. But if I have to be very honest, I can just put all of my money in names like a Meta, like a Nebus, like a Sofi. And these types of names to me today are the most attractive for me personally. of course a Google an Amazon if you don't have enough of those can always go and check with those types of names because at the end of the day they are the ones that have the money and so if we do have a crash here and there don't know when they have the money to pick up the companies that well burn too much money and can't raise any anymore and so all in all that's about it for me in today's video plenty of exciting news out there and of course what's more exciting is the earning season so stay tuned for all the upcoming videos and live streams over the next couple of weeks. If you're new here, you know what to do. Hit that red button. Really appreciate that. Hope you all have a wonderful weekend. Bye-bye.