This Stock Is Way Too Cheap to Stay This Way

Hey everyone, welcome back to another video. For today, in today's video, we have a lot to discuss. Now, over the past couple of days, I've said nothing. Like Jose Mourinho says, if I speak, I'm in big trouble. Well, I couldn't speak cuz my throat hurts. So, now we're back. And luckily for me, I have a lot to say. Have some news about Nebus, Palanteer, Meta, Google, Amazon, lots of other things, you name it. So, it's going to be quite a fun uh video. Now, with regards to meta, unfortunately, fortunately for us, especially Europeans, every time there's a new AI thing that comes out, we only get to use it well, what is it, couple of weeks, couple of months maybe down the line, unfortunately. But for those in United States, if you have been using new models, if you have been using Grockbot or now Metam Muse, let us know down in the comment section below what you think about that. Now, first up, a quick pat on my shoulder because this is a post I made two months ago. I would not be surprised if we see something happen between Nebus and Palanteer in the future. In my eyes, it makes sense. This was posted July 2nd. And look at what was announced yesterday. Palanteer and Nebus partner to deliver a complete sovereign AI stack to Palanteer customers. Palanteer names Nebus its preferred sovereign AI infrastructure partner bring Nebus compute and inference inside the Palanteer perimeter. Strategic partnership based on shared vision that open models and loop customer data create the smartest domain intelligence and provide better security. Companies will work together to bring new AI capacity online faster. You know what that means? ARR number every estimates that we think is realistic for the well this year I don't think much will change because we're almost at the end of it but 2027 2027 I think we're going to see a very very big number and I know some people might think I have a crystal ball or an inside man. Unfortunately I have neither. Just I guess a good instinct. And of course, yesterday was a very good day for the Neoclouds, but actually across the board, I think the market was in a pretty good place yesterday. Nebus was up 7.7%, but even Iran was up yesterday 5%, core was up 11% yesterday. So definitely a lot of momentum with those names. Yes, some of them are higher than others. Some of them still need to recover a significant amount, but it is always good to get some more momentum. Now, what could be the reason that we've had such a great day yesterday? Well, first of all, we have a lot of momentum from all of these model companies, Chad GPT, Antropic. Now, with Meta, we're still waiting for Google, which is probably why Google is feeling the stock is feeling a little bit of pain right now. It sits again right under that 200 day moving average. I'll talk a little bit more about Google in a bit. Meta, for example, pre-market as of right now is up 5%. And it's still ridiculously cheap and undervalued. We are seeing a lot of momentum right now with these big AI companies. Chad GPT, Astra 6, from what I've been told and from what I've seen. Even Jose, I mean, he just created a data center game in in a matter of what minutes. It's insane what you can do right now with these models. People thought that open AI was behind. I think when they came out with 5.5, people just hated on it because it's open AI or maybe it's just X cuz X Elon, you have a lot of fanboys there. Fine. But OpenAI has been doing very well. Codeex big success as far as we know. Astra 6 probably the best one out there right now. Entropic still doing extremely well. Why is all of this important? Well, to support this buildout, you would need these businesses to do well. You would need these businesses revenue to continue to grow more and more. Of course, with Entropic going public pretty soon, it's quite funny that all of these companies are suddenly coming out with huge releases, right? Whether it's Chad GPT, even Meta Gro with Grockbot, we're still waiting for Google with Gemini 4, but rumor are that this is also going to be a huge leap forward. And yes, I love Google. I think it's quite cheap. I'll explain why. But yes, they have been behind. They should be doing way more with Gemini. When you look at what you can do with Chad GPT, with Claude, now with Grockbot, now with Muse, Gemini needs to do a lot more. You need to be able to connect a lot more. Not just Google Workspace or whatever. You need to be able to do a hell of a lot more inside of Gemini. Now, as I've said, if we look at Google right now, the stock, we've seen the stock be under the 200 day moving average before on the daily, right? Right here in July was a pretty good spot to buy more. Even if we look at an Amazon, which I also think Amazon is still a tremendous company, we're now almost actually I think right now pre-market, we would be halfway back through the big gap up after earnings. Now, what I would like to show you right now is of course available on fiscal.ai I proud partner of the channel. If you want to try it out, there's a link down in the description and pin comment. You'll get 15% off and thank you to everyone that has been trying it out. But this is basically what you get when you look for revenue per employee. I've put here the majority of the big companies. I've also included Uber just so we can see the difference between Uber and Tesla as of right now because that discussion is still going on. And so if we look at the annual or revenue per employee, you can again go and have a look at the quarterly last 12 months. If you look at annual, the pattern is quite clear with all of them. Meta for a while you could see that revenue per employee has come down and then in 2022 come down drastically. Stock price also came down drastically. But since then, since then it's been accelerating. It's becoming a better company, more efficient company. stock price. You would assume you would assume that you would see your revenue per employee drop because the stock is down a lot. But no, that didn't happen. Moving on to Nvidia. Same story here. Although same same but a a bit different before the huge chat GPT jump. Nvidia, yes, Nvidia was also struggling a little bit. the gaming segment was quite big as a percent of the overall revenue that was struggling and so we've got that dip stock also dropped but then I mean I don't have to tell you what's going on here huge explosion in growth Apple still a big question mark around why why is this getting such a high multiple because revenue per employee has been basically flat for the past 5 years or so I always go back to the same answer just an extremely profit profitable business. Google Alphabet, same story. 2022, they took a hit. Of course, in 2021, all of these companies have experienced a big jump, a big boost, but since then, it's been the same story. Up and to the right. Microsoft up and to the right. Amazon, this is the craziest thing. Of course, Amazon is a huge company, has a ton of employees, but for a while, 2017 all the way to 2021, 2022, revenue per employee was going down. Only afterwards did we see it start to go up. And I'm expecting this number to continue to grow more and more, and that's where the opportunity lies. As for Tesla, since 2022, it has been basically flat. With regards to Uber, if you look at Uber, that almost increased by 50% since 2022. Now, why do I include Uber here? Because there still is that conversation around, oh, Tesla is going to kill Uber and this and that. Look, when you look at the big picture, if you look at what's going on in the market right now, if you look at the numbers, if even if we fast forward a year or two, there is no scenario where Uber doesn't exist anymore. 5 years down the line, unless Tesla and Whimo are the only autonomous vehicles on this planet, I don't see how Uber is not a great and bigger company. Because let's face it, autonomous vehicles, autonomous driving at the end of the day, yes, it is going to be a commodity. It is going to be something that every car will be capable of doing. And as I've said plenty of times, hey, if I can buy a fleet of Tesla cars, what's stopping me of putting them on the Uber network, why wouldn't I do it? The Uber network is the biggest one? I need high utilization. And so, I'll take my fleet and put it on that platform, and I'll make more money than others that do not. It is that simple. Of course, again, if somehow Tesla and Whimo take 90 plus% of the market, then Uber is not a good investment. Moving on here to the last one, Netflix is a very interesting thing because I would have assumed that Netflix would be way more efficient. Netflix since 2017, revenue per employee has only grown at a compound annual growth rate of 3.4% or 31.3% growth since then. Yes. Okay, they've had two years where things weren't great. But I would have assumed that this company by now would have been well the revenue per employee would just be a bit higher. But yes, I do think that with AI, with new technologies, I do think that all of these companies are going to become more efficient. And so yes, whenever we're going to look back at this chart with 26 numbers, 27 numbers, 28 numbers, I'm expecting these charts to go up and to the right. Now, strictly talking about uh Google, as you know, I couldn't stay quiet about Google last year. Rightfully so, just like I couldn't stay quiet or can't stay quiet about Meta this year. But Google, yes, last year misunderstood, extremely undervalued right now. Don't be misled by this 16.5 trading PE, onetime benefits, investments, and all of that. But the forward one, of course, the forward takes into account analyst expectations, etc., etc. The forward one sits at 24.7 times. The average analyst price target sits above $400, but we know analyst analyst. But Google is again getting a bit disrespected. I know what I said about Gemini, but if you look at the money maker, we've seen this time and time again. If you look at the money maker for them, which is Google Cloud and of course Google search, but Google Cloud is the one that's growing very very quickly. This here I am expecting to continue. I am expecting this number to become bigger and bigger and bigger. Margin wise, yes, it could still go a bit higher as well. This was the story that I said last year that the market was missing. The market was purely looking at oh Bart or Gemini or this and that. And yes, the lawsuits didn't help. But for some reason, they completely disregarded Google Cloud. They completely forgot about this business, how this is going to accelerate, how margins are going to expand. Completely completely misunderstood. Yet, here we are. And right now, I'm not saying it's as cheap as before. But it is definitely again getting misunderstood. Yes, I know the backlog. The backlog is immense. I I I usually like to show the backlog, but I'm not usually the one that says, "Oh, this is the backlog. This is why you should be investing or let's put a a multiple on the backlog." No. Yes, the backlog is over half a trillion dollars right now. But you still need to recognize all of that backlog and in a timely matter. But the story with Google is very simple. Search is growing. YouTube is growing. Google Cloud is growing. Way more is growing. Although that's a bet. The business is becoming more profitable in my opinion. The chips business, the chip business is also just growing under the radar. This is also a story for 2027. And so yes, I do think there is an opportunity here. And by the way, selling puts, whether it's for Google, Meta, Amazon, if you look at the prices that we're at right now, and maybe I'll pull some screenshots on the screen for September or December 2027, you are getting paid a decent amount of money. If you say you like these companies and you say, "Oh, I don't mind buying more, a lot more because one contract is 100 shares by the end of next year at today's prices or sometimes even lower, that's a good deal, right? If I can tell you that next year, at the end of next year, you could be allowed to buy more Google shares at 320, $300, would you say yes or would you say no?" Of course, it's a bit more complicated than that, right? because we don't know what what if the growth rates are slowing down. You're right, but that's why you have more than a year's time and that's why you're getting paid quite a big premium today. Lastly, here there is Meta Muse and this is something that we've talked about. We've talked about the fact that Meta was very comfortable with Museark that Meta will start to build more on that and here we have a big big jump. you are getting for free I think what was it 100 million tokens per week. So per week 100 million tokens refresh for free. Then if you want to use it even more there are subscription tiers. I think one is also quite cheap $5 or so. The other one is 20 something like that. But this is again a way for them to start monetizing more and more. Now you're going to say why are they giving this away for free? Well, first of all, to crush the competition. Second of all, and Zuck said it during a a small interview, he said, "Look, we want to give many people the power to do whatever they want afterwards. It will already benefit our business. Also, you've probably seen this. You can start shop. You can start to spend and do other things. Post more on social media, manage your business, you name it." And then it becomes a question of take rate. You take a small percent of all of it, but a small percent of hundreds of billions of dollars is quite a lot of money. And again, I do think that the market slowly but surely will start to realize how big of a deal this is, especially when you have the distribution that Meta has. And I don't want to don't come to me with, oh, but I don't trust them with this. And look, you're on the internet, okay? If someone wants to access your data, they'll find a way. If you have something to hide, that's on you. Every website, everywhere you go, you've probably left some some trail. But okay, Meta is meta. They are doing what they can. I'm not saying they're perfect. They're doing what they can privacy-wise. WhatsApp, I think, is very good. So, people, oh, but you can. Okay, fine. Everyone or most people have already given most of their data and control to companies that didn't even exist 5 years ago. An entropic chat GPT or any other AI service out there didn't have an issue with that, right? With companies that could go bankrupt eventually. All of these small AI companies that got all of your data, you didn't have an issue with that. but meta because some trolls on social media keep posting the same thing. That's a problem. Come on now. Let's grow up a bit. And to end this video, don't forget that a lot of the moves that we're seeing right now is still being driven by macro fat policy, bonds, etc. Earning season is basically behind us. We only have what is it? Oracle, Adobe this week. Then we will have a micron still. But most of the companies, all of the companies that we do cover have reported great results. Now we will get impacted by policy, oil prices and things like that. Bottom line is there are always good opportunities in the market. Yes, even if we're looking at $4 trillion companies. Thank you all for joining. See you all in the next one. Bye-bye. Hey,