$160K Down in ONE DAY! Why I’m BUYING These 15 Stocks

Hey Bowtie Nation, Joseph Hogue with your weekly market update after a massive sell-off in AI stocks last week. I'm going to do a complete portfolio review including updates to shares of SMCI, SoundHound AI, Symbotic along with an opportunity coming in the next stage of AI stocks. Here we can see in my main E-Trade trading account a brutal day on Friday alone with the top 15 stocks here down $160,000. Though, I do have some call options against these to kind of limit that downside risk as well as some other accounts with most of my ETF holdings. So, but this is the main the main trading account that I use to put all the stocks in that I talk about on the channel here. And we can go down through these top 15. I'm also going to cover some of the ones I have on my Blossom account as well as some of the other opportunities I'm seeing. And a big warning for Wednesday's video. One Wednesday's video talking about that next stage in the AI stock theme and the stocks you need to be transitioning over to right now. Here we see two of my top holdings, Ethereum stocks. So, those funds that hold Ethereum. We have the ETHA here and then the Grayscale mini ETH. Both of those together about $1.7 million invested there. Still up about $300,000 in that, but down $28,000 on Friday alone. Ethereum getting hit just in the general sell-off. No real news over the last week. We can see though that it is still down 18% for the year. That is off of the lows this this year about $15,000 per Ethereum token all the way up to almost 2800 there. The big news over the last couple of weeks though has been the SEC moves. The SEC creating new regulations after the failure of that Clarity Act to to give the market a little bit more clarity about what businesses, what people can do with with cryptocurrencies. One of the biggest news here over the last couple of weeks is that the SEC did clear a path for tokenized stocks. So, a lot of these companies, Robinhood in particular, creating tokenized stocks of of US companies that can be traded 24/7. Okay, this is the future of finance, folks. We've been talking about this wave of tokenization over the last over the last year and how it affects stocks like Ethereum, stocks like Solana. Basically, there are just so many advantages to tokenizing real assets, okay? That's not only stocks, but bonds, real estate. All those assets can be tokenized, they can trade 24/7, they can trade with a fraction of the cost, and they can trade with a lot more liquidity. So, think of this not necessarily as an investor in these, but as the financial as the people behind these, the finance system because there are just too many advantages to using tokenization rather than that traditional legacy way of using these. This is the This is the direction that finance is going to, folks. And what we're doing here with Ethereum is investing in the backbone, the infrastructure for that wave of tokenization. All those tokenized real-world assets are trading on the Ethereum blockchain or on the Solana blockchain. So, I am investing in these two Ethereum trusts, holding onto those. $28,000 loss on Friday there, but still up big, and I expect Ethereum to be up back up to 4,000, 5,000 each by the end of next year. My second biggest investment here is Super Micro Computer, ticker SMCI. Got about 27,000 shares of that. That is down from previously in the year. As I've been saying over the last couple of months, when when SMCI has rebounded back up to 40, 45 dollars per share, I am looking to get out of this position. I've got a lot of covered calls, basically covered call options against this to cover all those shares at 35 to 40 dollars a share expiring in January, okay? Some of these came off here in September where they was those were called away because the share price was above those covered call options. So, so this is this is closing out this SMCI position. Now, I still do believe that these can get back up to a 40, 45, 50 dollars per share just on valuation and just on SMCI's positioning in that server space for AI stocks. But, not only am I looking to transition out of AI infrastructure stocks, something I'm going to be talking about on Wednesday, so do not miss that video. But, not am only only am I positioning to to transition out of those hardware stocks into the software names that are going to benefit from AI. I'm just tired of all of the all the heartache and the pain that SMCI brings with it. We can see here that Super Micro Computer did recently rally past that $45 per share really on just the valuation that we've been talking about over the last couple of years. This company is integral into that AI buildout theme. The servers that go into these data centers that hold all those Nvidia chips. SMCI is one of the best server makers out there. So, the valuation has just been too too attractive on this. But, there is a reason for that low valuation and it's because management has just done a piss-poor job of managing this company, managing expectations, as well as you know, just some accounting gimmicks that were pushed too far. Okay, and not enough controls on some of their employees. Okay, we've gone over that in prior episodes. We won't go over over that again. But, you can just see the roller coaster just in the last year. If you look over the last five years, you can see the roller coaster here down down into the teens up up past $40 a share multiple multiple times. And and I've said in the past here, despite the valuation on this stock, folks, if you do not have the stomach for this roller coaster, you should not be in the stock. I don't care if you think a stock is going up two, three, 400%. If you cannot have the confidence in your analysis and in your research to stick with it through this roller coaster that you see with something like here like a SMCI, then do not buy it because you're going to end up freaking out, you're going to panic on these big dips, and you're going to sell at the bottom. You're going to end up buying up up at the top, so you're going to lose money whether or not the uh the stock ends up rebounding into the future. I'm still up $93,000 on that position as well as all the covered calls that uh that I've taken income off of off of the position from that. So, I am looking to close out this SMCI. I still think again, I still think it goes back up to $40, $45 per share. So, if you're holding on, you can get some upside bounce from there. But again, looking to close out the position on SMCI. One of the most interesting stocks here and actually looking to add to this is Alibaba ticker BABA, now at $109 per share, down a little bit this week, not quite as much as some of the other stocks because of what I think is coming here early November when the company does report its earnings. This article really encapsulates what I've been talking about over the last couple of months, how open-source LLMs, open-source AI models could really trigger a trillion-dollar AI infrastructure reset and that that need to transition from AI infrastructure into the software that's going to run off of it. What we know is that OpenAI and and Anthropic, right? Those are frontier closed models, okay? When you use GPT, you are using it on on OpenAI's servers. You are paying them token costs to run those models, okay? That can be very expensive, especially if you're running trillions of tokens in an enterprise agentic model, okay? What what these open-source models do is they allow you to download that model. You can use it on your own servers. You can use it in your own racks and yes, of course, that does cost more hardware costs on the company side, on the corporate side, but then you don't have all those corporate costs, okay? So, what we're seeing is a massive wave of companies into these open-source models to cut those AI costs. We can see here, Jefferies points to research from global aggre- global aggregator platform Open Router on Chinese models processed 76 trillion tokens in the week ended 27 September. That was up from just 4.3 trillion in late April. Okay, so a giant increase from from four four four trillion tokens to 76 trillion tokens just this year. That is in these open-source models. So, what we're seeing is people leaving these these frontier these expensive frontier models like OpenAI, like like like Anthropic into these open-source models. I think that is going to be the big surprise when we hear uh Alibaba report on in in November report its earnings. OpenAI or Alibaba has one of the best open-source models with its Qin model. I think it's really going to be seeing seeing some growth on there. Last earnings report from Alibaba was a little disappointing on just the scale of the spending they were spending to to increase this their own infrastructure in AI. Investors weren't really happy about that, but I think we start to see the growth come through in this next earnings report. That's why I own a 1,500 shares here in Alibaba. Looking to actually probably about double this over the next couple of weeks before their earnings report. Shares of Symbotic ticker SYM down 2 and 1/2% just on Friday alone. Holding on to this one This one has come down a lot from its $60 $70 per share peak just last year. We were in it pretty early though. We were in it at $25 per share. So, still up about 55%. I still do believe that Symbotic changes warehousing and industrial logistics. It's got that huge partnership with Walmart where it's basically just managing all of Walmart's drone delivery systems and in warehouse robotic systems for Walmart developing those out. It's got another partnership with SoftBank to do the same thing, but internationally. This is coming into a giant market a giant global logistics market that it can use its robotics and really transform that market. So, while Symbotic is down quite a bit from the peak, I know a lot of people have been asking about it. I am still holding on here because I think this this company is the next the next big company to change its industry and what it's doing. Also want to update on our cybersecurity stocks here. This is CrowdStrike ticker CRWD, Fortinet FTNT, Okta Inc. ticker OKTA, we've got Zscaler here ticker ZS and then here Palo Alto Networks ticker PANW. All you out there in the nation know that cybersecurity is probably my favorite long-term growth theme, okay? It's not quite the growth that we see in some of the AI infrastructure stocks over the last couple of years, but this this is secure. This is secure cash flow growth for these companies because AI is only increasing the demand for these cybersecurity companies, okay? All those rogue agents that that companies need to now protect against, they're rushing to these cybersecurity companies. Okay, we can still see even after last week's sell-off in these. I'm going to show last week's sell-off upwards of 20% in some of these stocks. Friday alone down 7% in some of these. 7% there for Crowd for CrowdStrike, 7% for Fortinet, Zscaler down 6%, Palo Alto down almost 8%. Still up triple digits in most of these. Palo Alto up 126% since we started buying it. And these this is a great buying opportunity I think here folks coming down back down into valuation territory for these. Here we can see a side-by-side comparison of the five stocks there. There's Palo Alto, CrowdStrike Holdings, Zscaler, Okta Inc. and Fortinet. Scroll down here we can see the giant sell-off over the last five days all the way from 11% down in Zscaler, which is interesting that Zscaler didn't sell off quite as much as the other ones because it has been the laggard of the year. So, maybe Zscaler is already fallen quite a bit and and really in good value territory already. So, not quite falling quite as much over the last five days, but then down here Fortinet down 13%, CrowdStrike down 16%, Palo Alto Networks 17%, Okta Inc down 20% just in the last 5 days. We can zoom out here, see over the last Well, let's go over the last month, see how these have done. They we did see a big bump over the over the summer in these into September continued to go, but then over the last month really flat to down negative. Zscaler was up about 8% over the last month. Palo Alto down about 9%. We're scrolling down here to compare these on growth and valuation. Again, folks, I wouldn't necessarily be picking and choosing out of these five. These five are in an industry that is growing so fast and that is so critical in this AI boom that all five of these can do very well. I do want to be selective at times to to pick up shares after these dips here. We can look at forward revenue growth here. Palo Alto 20%, CrowdStrike 23%. CrowdStrike really the the number one by far best platform out there with its Falcon platform. So, CrowdStrike dominating in the technology. Palo Alto the the largest company in the space so really has that scale and scope of products out there. Zscaler 20%, probably really the the value pick of the of the group, probably the most exposed to any kind of a an AI agentic replacement theory, but but still growing very strong 20% revenue growth. Okta in a smaller segment only covering really identity access management within that cybersecurity segment. So, that's why you see only growing really 11% over the year over year here. Fortinet 15%. It's in more segments, but they are slower growing segments of cybersecurity. Fortinet where it really shines is in its profitability. But here you do really have that growth there in Palo Alto, CrowdStrike, and Zscaler. Let's scroll up to see the valuations on these and I want to look at the price to earnings to non-GAAP basis here. So, again, this is the price to earnings. This is the valuation. How much you're paying for every dollar in earnings, but then adjusted for that growth. Okay, very important here. You adjust these for this this growth just to put them on on even playing field. Okay, so here we see Palo Alto four times price to earnings adjusted for growth. CrowdStrike six times. Okay, these these two leaders in the group, you are paying for that that kind of growth and that kind of stability in cash flows and that that critical nature of of cybersecurity. Zscaler again, the valuation pick of the group down up up just over the last couple of months, but still under two times price to earnings adjusted for growth. Okta here at three times and Fortinet at three times. Now, I probably wouldn't be picking up a whole lot more shares of Fortinet or Okta just yet. They are a little bit more expensive compared to what they're they have traded at historically. Uh CrowdStrike and Palo Alto also a little more expensive than I than I like here, but I am picking up more shares of Zscaler, a very good value pick here in the group and we saw that 20% revenue growth expected this year. Here with SoFi Technologies, this is actually a second leg invest investment that I've made. Uh we were talking about SoFi a couple of years ago when it was around seven eight dollars per share. We bought in there, rode it all the way up. I actually got called away on those shares at about at about $20 per share in January of this year. So those those shares got called away, ended up buying back in here at $15.89 and it is down right now. But SoFi, just like just like Ethereum and those cryptocurrencies are changing finance. We see SoFi Technologies and some of these fintech banks are really changing the banking side of that finance. Within that, SoFi just recently became the first national bank to go live with its stablecoin settlement across Mastercard's global patent payments network. And this this news was huge. I think it was largely overlooked by the by the market, but is a big in in that shift into stablecoins, into blockchain use in finance. Okay, with these stable coins, again, just like that tokenization, stable coins, they can make they can make settlement of and transactions and transition money money transactions instantaneous at a fraction of the cost, okay? So, if you again, don't think about this as a user of a banking system as a depositor, you think of it as someone who is running that system, you're going to be able to give your customers instant you know, instant transactions at a fraction of the cost. It's going to settle within within seconds, within less than a second rather than days. Okay, what happens a lot of the times when you move money to another bank or when you pay somebody or some kind of a financial transaction, a bank-to-bank transaction, that doesn't settle immediately. That takes can take days or days to settle on their network. Well, these banks, they have to hold that money aside just in case any kind of fraud or any kind of scams were going on. So, they have all this money set aside just sitting there to back these transactions going back and forth at all times. Well, what happens when those transactions are instantaneous, that clears up a lot of this bank capital that can be then deployed to to get interest rates to get interest return on interest rates. Not only does it does it give customers you know, instantaneous transactions, 24/7 liquidity, all all these other things at a fraction of the cost, it it really moves money around at a much faster velocity and means a lot of a lot of benefits for these fintechs, for these financial technologies and and online banks. So, so yes, back in SoFi Technologies ticker SOFI here. I think this goes past $20 per share over the next year. It is still trading at about one and a half about 1.8 times a price to book value. I like it right here. I think it goes right back up there to past two times book value and I'm going to stick with these shares of SoFi here. Next, I want to highlight SoundHound AI ticker SOUN. This is the biggest red in the portfolio here down 47% this just like Sofi is actually a second leg investment. We're talking about this back in 2024 when it was just under $5 per share back then just before a big investment by Nvidia. We wrote that one up again also to up to 18 $19 per share earlier this year and those were called away. So I bought back in a later you know about May of this year back in just under $9 a share and those are down quite a bit right now, but I think this this one gets right back up to past 10 10 $15 per share over the next couple of years cuz SoundHound is revolutionizing how we use AI. And like I said, this is going to be the main focus of Wednesday's video how this hardware how this AI bubble around hardware infrastructure and the compute really breaks, but how you want to be transitioning use this as a transition into those stocks like SoundHound AI like Cloudflare like a ServiceNow those application stocks that are going to be benefiting as AI continues to change our world. Okay, folks, this is we saw the same thing in 2000 with the dot com bust. Okay, everyone said internet was going to change our lives. They were bidding up all the hardware stocks the the things like Oracle back then even back then Oracle was an infrastructure stock making news, but Oracle Lucent Technologies all these infrastructure stocks making it creating the infrastructure behind the internet. Okay, people were paying way too much for those. Yes, the internet did change our lives, but not at the speed and the revenue and the cash flows were did not come into the speed that they needed to support those stock prices. What So what happens? Those crashed. They took all the stocks down with them even the good ones even Amazon. Amazon revolutionizing retail there fell 95% down from a from its post IPO price there in 1999 fell down 2001. I think it hit something like $6 per share in 2001. Now look at it up past up into the thousands dollars per share at before the adjustments. And I think we're going to see the exact same thing with some of these AI application stocks like SoundHound, like Cloudflare, like ServiceNow, like like even Apple loving some of those application stocks. You're going to see them pulled down at when this when this AI infrastructure bubble pops, but that is going to be your prime buying opportunity. I'm going to highlight that on Wednesday here talking about some of these other ones Grab, ticker GRAB, down a little bit from start from the average cost there at about $3 per share. I still think this is the super app that nobody's talking about, nobody really knows about cuz it it's only in about 17 countries. They're in Southeast Asia, okay? But where it is, it is dominating as a super app for finance, for delivery, for mobility. All these different verticals that it is in, it is dominating in its own region. So, I think either this one gets acquired by a larger a larger app, maybe even Uber to to bring it internationally or just continues to grow there in Southeast Asia. One that I can see a back up to $6 per share very quickly. Now, since all of my stocks aren't in that main E*TRADE account, I want to go to the Blossom app here that shows all my stocks. Look for the link below to sign up for Blossom. It's totally free to download. You're going to see all my stocks. You're going to be able to follow 500,000 investors in the feed to see what everybody is talking about and it helps support this channel. So, I appreciate that. So, look for that sign up link or that download link in the description below. I'll put a QR code here that you can also scan for that. But here we see in my Blossom app under my profile that's Let's Talk Money there on Blossom. You can see these AMD up 390% since we started since we added it to the portfolio. I've actually sold out of a lot of that position already. Sold out too soon, honestly. Frankly, a lot of these stocks they go up so far, so fast. I you know, I tend to that sell out too quickly. Okay, so we were in this AMD last year at about $105 per share. I ended up selling in the adjust under $400 per share this year. So, I need to update this, but up 390% over that. I was talking about AMD when nobody else was looking at it. Uh Shopify also up 282% since we started buying it. That one really being able to use AI in online retail. I think it's going to do really well. Snowflake going to be talking about that in Wednesday's video. Okay, Snowflake is one of the stocks that is going to benefit from usage of AI. Not necessarily the backbone and the infrastructure and the hardware within AI and the growth of we've seen over the over the past year in those names like Micron. But, Snowflake is really in that group of the next transition in AI AI, the users, the applications that I think it's going to do really well. SoFi Technologies there. We see Ethereum, Amazon. It's hard to go wrong with some of these hyperscaler stocks. Okay, Amazon, Microsoft. We've got Microsoft in there as well. We're going to start start seeing some earnings going to be critical for these hyperscaler stocks. Amazon, Microsoft, Meta reports earnings this week. Going to be a critical piece of news for this market because what we're really looking for is that they are still spending heavily on those on that AI data center buildout. Okay, if Meta Meta Platforms comes out this week and says, "No, we're still spending just as much, increase increasing our budget, our capital expenditures budget for AI and compute speed, compute power, then that's going to lift that AI infrastructure trade right back up. That's going to lift all the AI stocks back up, give us a little bit more time to transition into those software stocks, into those AI software stocks. But, that is going to be what you want to be looking for this week is not only the news from Meta Platforms, but when Microsoft and Amazon come out with their earnings over the next couple of weeks, you want to be paying attention to how much they're spending on AI, whether it's an increase, whether it's the same, or hopefully not, whether it is a decrease from what they've said in the past. Here you can see some of these other Symbiotic, they're up 60% since we started adding it. Salesforce CRM, that is another one of those transi- transitioning stocks, you know, it's use of AI agents. I think Salesforce is a little bit more at risk to software software replacement by AI, so I wouldn't be quite as much in CRM as I am in something like ServiceNow, which is ticker NOW. You see here ServiceNow, not up quite as much, only up 35% since we started adding it, but I like that much more for the orchestration, the the management layer between the AI models and between the agents that I'm going to talk about on Wednesday. Now, if you're looking for more stocks to buy and more investing ideas, YouTube has picked out this video here just for you. Check it out and see if they're right.