THESE are the stocks Tevis is using to BEAT the stock market

Hello everybody. It's Gav Blackburg, co at Wolf and joining me from today for today is Tevis from Fun of Investing aka fundamentals of investing. I like that sign on the wall behind him says, "Let's get right into things. You're an avid investor in the markets. You put out a lot of content around it and you shared recently a update on your portfolio and some of the trades are fascinating. So, I want to just jump into these things and talk about some of your current portfolio and then talk about for the rest of 2026. what is interesting in terms of some of the more macro sides and the cycles that we're seeing happening. I want to start off with a trade that my audience is very interested in and me as well, which is the Amazon trade. A lot of people have been talking about this. Chris Miller said this is the best play in the world right now for those that are interested in AI, which might shock some people, right? They might think MU or SKH or things like that, but Amazon right now is definitely carrying a lot of weight when it comes to these things. When it comes to Amazon, you talked about you finally got back into shares after getting your shares called away back in May. So, back in the trade, talk to me about Amazon and why this is so interesting for you. >> Yeah. Uh, first of all, happy to be here. I think with regards to Amazon, it's uh I I talk about this on my podcast all the time. I view it, especially in this market, especially because my portfolio is mostly high beta names. Names like Amazon and and and Meta to some degree and and Google and just the hyperscalers. Um, they're piggy bank positions. So, if I want to keep cash on the side or if I want less volatile names to counterbalance the volatility in my portfolio, I'll go in some of those names and I'll write covered calls against them. But specifically with Amazon and Meta, >> I made a post uh towards the end of 2025 saying that in 2026, I want to enter these names more heavily for a couple of reasons. first because I think they're undervalued and we can talk about both of them individually as to what they offer and you know what the thesis is there. Uh I think Amazon's historically traded pretty uh cheaply in terms like it doesn't really have a huge premium on it. That's the case years into the past. And then secondly to sort of mature the portfolio somewhat. I don't want to have, you know, 50% swings in the portfolio on a yearly basis, but I want to be able to layer into these more long-term positions. It's going to be less premiums for running a wheel, but it's probably going to be more um sustained growth, and it's a more stable growth upwards. So, Amazon and Meta were the two that I really chose. I got my shares called away on Amazon when um the war with Iran originally ended and everything shot up. Yeah, >> I have a spreads position on Amazon uh for 2028. So, I bought the 230s and I sold the 280s. And so, I was okay being in that. But, I got the shares called away. Amazon went to 280 and it hovered there for a while before coming back down. And when it came back down to to 230, I decided to get back into shares and here we are. >> Yeah. Let's take a look for a second just kind of at the Amazon chart and people can kind of see a little bit of what you're talking about. I'm going to pull that up on my screen for those that are watching here. So, you can see right here, Amazon daily chart and obviously there's that move, that giant move to the upside like we talked about throughout really all of April and into May. And so, at this point, we're sitting at an interesting area right here. Key moving averages 200. We've recently bounced off and we built a lot of volume up in this space consistently. So as we get to this point here at 250 and as you were holding it and you as you are somebody that's you know placing covered calls right and other pieces around it how do you think about it as you know short-term and longterm is a position that you want to continue maintain longterm if it shoots up are you okay getting called away again. How do you think about it? >> Yeah I mean I don't really see it in a vacuum. It's relative to everything else in my portfolio and what I'm more bullish on really depends on the valuation. So, if a company like let's say Nebius, which I'm very bullish on, it's my number one position. If that falls to $100 a share, and I see a better riskreward in that versus Amazon, then I'll rotate out. With regards to covered calls, generally speaking, on stocks that I want to hold over the long term, I'll stick to a relatively safer delta. So, I'll do, you know, two weeks out or one month out, something like a 15 delta versus if it's a trade or something that I want to juice the premiums off of, then obviously I'll stick to something more aggressive cuz I'm not really afraid of getting the shares called away. But with regards to Amazon, like I said before, I want to build it into a longer term position. So, you know, I don't even have covered calls right now on Amazon. I'm just sitting on the shares. I'm sure eventually when, you know, Amazon does go back up, uh, I'll start writing them because it's going to be lucrative, but it's going to be fairly conservative once I do. >> I like that you mentioned Nebius. I'd like to actually rotate right into that. I think that there's some connectivity in here of the AI trade as well. Nebas has become a pretty large portion of your portfolio. You mentioned it got all the way up to 45% of your portfolio recently and then you trimmed 10 to 20% of that position. So maybe it's safe to say it's around 35 to 40% of the portfolio. >> It's like 25% of the portfolio now because it fell. You you trimmed God I got NFL back. I [clears throat] trimmed a quarter of the position around 240 250ish um towards the end of June and I bought that's the capital that I used to to buy Amazon and I also bought service now >> mostly because um I mean we had run up like my Nebus cost basis was in the like $81 >> and so we'd run up to to almost $300 and I was just taking some profits along the way >> but Nebius is also very volatile. tile and you're going to have aggressive portfolio swings. And that was also one that I was aggressively writing cash secured puts and and covered calls on. So if some shares got called away from covered calls, like that's fine. I just let them go. Um but yeah, still still very bullish in Debas, but now it's dropped to 25% of my portfolio um because the the stocks dropped. >> Yeah, pretty big drop and dropped a lot more today as well for people that are looking at it. It went from it peaked right around 300 and somehow we're all the way back to 172. Uh so that was a that was a precipitous drop here almost a 50% drop and the 200 SMA has still not been hit. That's all the way down at 138. So let's talk a little bit more about it. You know what makes Nebia such an interesting investment to you? What is the bull thesis behind this? And is there an area where you'd consider adding more? >> Yeah, I mean look my cost basis is 80 bucks, right? So, if it were to fall to the low $100 range, I would absolutely add more. I think the deals that they have with the hyperscalers with with Meta and Microsoft, um I think the they're really like positive catalyst going forward as they service those contracts with regards to connected capacity as the buildout continues. I think the data centers that they're expanding they just um you know there was news that broke on X over the past week that they have new data centers like now one in Wales, one in India. Uh they recently announced formerly Spain and their data center expansion is off the charts and the company's growth rate speaks for itself. like this is a company that is going to be super emblematic of the the macro demand for compute and that is not going to stop anytime soon. It's only going to continue. I'm in Cororeweave to a smaller degree for much of the same reason, but Nebas I think is best in class with regards to how they're structuring some of these deals. And so I think they're only going to keep going higher. Now, it's it's a pretty volatile ride upwards, and I don't know that everybody will be, you know, willing to to take to go on that trip, let's say, because it's a roller coaster in many cases. But from an execution perspective, with regards to what the company has coming up, like this upcoming quarter, they should be providing some commentary on 2027 demand. I mean, they're sold out all throughout 2026 already, and they're right now taking orders for 2027. like Mark Borditski their CRO said there's four customers for every um you know for every like megawatt that they bring online essentially. So [laughter] the company is completely sold out and they're growing as fast as possible. So, I want to be taking a big bet behind them. And yeah, like I know these numbers make it seem as though this is irrational, irrationally exuberant if I'm, you know, over a quarter of my portfolio in Nebus, but don't forget that my cost basis in Nebus was originally like a, you know, a 10 to 12% position. >> Wow. Well, let's take a look for a second then at the Nebius earnings since you did reference those and I think that they are super impressive. Just pulling this up on screen here, you can see just how much this has grown, right? We go back to Q3 of 2024 and I actually was talking about this a little earlier today as well, but 43.3 million now 400 million. You know, pretty crazy to see that. Uh basically 10x. Now the stock has 10xed as well. um you know in that time period I'm pretty sure it's like essentially right around there and then projections here to move up to 576 million and then all the way up to almost a billion dollars in revenue at 937 and so this is still pretty substantial jumps that people are estimating here. Is there anything else you know outside of the earnings and the numbers that continue to make you more earnings numbers and uh selling out all of their capacity that makes you bullish on them? I mean, yeah, sure, we could talk about the management and the the pedigree there, but I don't even think it needs to be more complicated than that, right? If you think about what they have, the $27 billion uh, you know, deal with Meta, the $15 billion back stop essentially that they can resell higher to to somebody else, uh, the 17.4 billion I think it is deal with Microsoft and just their ARR guidance. I mean 7 to9 billion is absolutely going to get raised again this year. I'd be willing to go out on a limb to say that over the next you know two quarters they're going to come in higher than 7 to9 billion and next year it's going to be much higher than that. I mean they're raising their capex for a reason right they raised it uh from 16 to 20 billion in capex to 20 to 25 billion in capex. So, they're fully investing in scaling out the offering even further and that's going to pay dividends down the line because they have connections to all of these companies, Nvidia, but also all the major hyperscalers as well. They see the demand and it's not subsiding anytime soon. I mean, uh, Arocotti, the CEO, was asked on a recent earnings call like what I mean, he's asked every earnings call about the demand profile, but in this most recent one, he said, "Look, we don't see demand subsiding even in 2027. We can talk about 2028, what that demand profile looks like, but these guys are very soon going to be sold out for 2027 as well." Like, they're already starting to book deals in 2027 from data centers that are not even built yet. >> Yeah, it's crazy. It doesn't need to be more complicated than that. >> So what's the, you know, potential bare case like being aware of it and trusting consume to verify, what do you think is drawing it down? >> So I think potential bare case, well, okay, I mean Nebia sold off on this Meta news. So Meta announced that if they have any excess capacity, they're going to sell it, which I think is kind of laughable because Meta also did a what$10 billion investment in Alberta. They're also increasing their investments in I think it was Louisiana this week announced they're not going to have any excess capacity. They're it's just it's not going to happen. And Meta's really been I mean we can talk about Meta and why that's sold off but they have had some dark clouds let's say from a market sentiment perspective. So they need a small boost especially because they're increasing their capex. They're going to be increasing it again. Um, and the bare case for Nebius is if these types of things keep happening, like if the Metas of the world come out or if the Microsofts of the world come out and say, "Hey, we're actually going to be fully vertically integrated from an AI perspective and we're going to be having our own data centers and we're not going to need a Nebus or a corewave in the future." People could argue that. So, that's number one is if your customers turn into competitors. Sure. Number two is if the floor drops from a macro demand perspective, right? If the demand across the board for AI falls, why would it fall? Because people don't see the ROI that AI would provide. It's maybe, you know, more hyped up than what it actually proves out to be. And the capex is not proven out. And as a result, next year they're going to have less capex. And if there's less capex, well, all of a sudden there's less demand for Nebia's uh offerings, right? I don't think either of those two things are going to happen. And besides, I think that even if we see the first inklings of these things, these are like for 2028, 2029 and beyond that we're going to see it. Like Meta's Louisiana Center, that's not even finished until 2032. Like what are we talking about here? we get an announcement that Nebia sells off what like 15% on the day for something that's going to happen what six years from now it's just completely unrealistic but I think that's where we are in this hype cycle let's call it a lot of these data center names have gone from fairly complete anonymity to now exploding in the stock price and every little thing they're on a hair hair trigger right like every little thing sets them off up or down but on the flip website. I think there's also a lot of customers that Nebus could potentially have that they don't have announced just yet. If Anthropic drops, if Google drops, if Amazon drops, like we're going much higher than we are right now. And we have earnings coming up. So, I think it's definitely a possibility for somebody to be announced in a big way. similar to how we jumped what 20 something% when Meta when uh Microsoft dropped and we also got the meta announcement right on earnings two earnings ago I think it was anyways that's kind of like the bare case and then the counter to the bare case in a nutshell >> yeah it's really well put I like that point especially what you said of their clients turning into competitors is the bear case it's well annunciated but then also kind of putting the caveat of it's not going to happen in the short term it's something that is a longer term and people are really just trying to figure out is this stuff priced in or they're trying to price it in themselves. So there there's a couple pieces there. Zooming out on the portfolio a little bit, what's a stock that you currently own or want to own that you think is really being overlooked still within the moment? >> All right, let me check for you. [clears throat] >> It's being overlooked. >> Yeah, something that's just overlooked. It's just not getting the love that it should. Oh man, I think uh Service Now could definitely be in that category. I just got into this recently. Granted, I'm not like big into Service Now. Just a couple of percentage points. I think it's like 6% of my portfolio. Um but, you know, I want to see what they report here in a couple of weeks when they report earnings. >> Oh, no. Earnings are in four like four days. >> What's that? >> On Service Now, earnings are in uh four trading days. >> Next week. >> Yeah, >> next week. >> Mhm. >> Yeah. Yeah. And I think it's going to be really interesting because the market has sold this off as part of a basket of like AI is going to kill SAS and Service Now, their offerings and not only are they growing, not only are their renewal rates remaining fairly resilient, but I think Service Now is actually going to benefit from this because like they serve to some degree as that orchestration layer for AI. And the more complicated you get, especially as you get into agentic use cases, you're going to need somebody like Service Now if you're this massive enterprise company. And so Service Now does not deserve to be trading where it is. I mean, they had their worst trading day, I think, in company history when they reported last earnings. And um and then Bill McDermott came out and said, "Hey, look, like we're we're not seeing the demand slow down at all. Like this is something that's benefiting us, not hurting us." And I think that's going to be proven out in every subsequent quarter when they see in the numbers that, oh, wait a minute, this is actually a resilient business model that's going to be helped, not hurt by AI. >> Yeah, it's a pretty interesting chart, you know, because they had such a big run back from, you know, really like a decade essentially that they just kept on going up throughout. They went from, you know, 2012 to 2021 3,000% move, you know, 5,000% move when you're coming up here. Even from here to here was pretty significant going from 60 bucks to 230. But then really big drop that you I think mostly happened this year. If you look this is really the start of 2026 is like right around here. And so they were still trading at 153. So down a decent chunk from there at this moment. Can you give people you you talked about how hey service now is something that's going to be required if you are utilizing agents trying to integrate them further. Can you give people just like a couple more minutes on why this is such a fascinating business model? >> Yeah, sure. I mean, look, Service Now is is a B2B company, right? And it's it's essentially an orchestration layer um that enterprises can use for all of their AI systems to talk with each other. And I think that is a piece that you know as we move up the stack in terms of how do these systems okay step one is let's integrate these systems step two is how do these systems collaborate and work together well for service now like it really is about their suite of products. So if you think about AI monetization they're monetizing AI faster than any comparable software company out there. their AI their AI revenue that they have is now raised to 1.5 billion in 2026 up from 1 billion. So they're actually making real tangible money from AI which is completely different from what the market thinks of this business, right? You can't trade Service Now as well as like Adobe as well as you know CRM all in a basket because they're differentiated businesses. service now. I mean, Bill McDermott in the last interview said we're going to make more than 1.5 billion. Again, they're going to raise that AI monetization revenue from the uh projection. Yet again, subscription revenue is fairly resilient. I mean, the all the fundamentals are strong. The business is growing over 20%. And now they're repositioning from workflow automation to essentially being this governance layer for all of enterprise AI. So, they're going to be running Microsoft Copilot. They're going to be running uh Agent Force from from Salesforce. And they're also going to be running their own custom LLMs from OpenAI, from Anthropic, and you know, Gemini and and everybody else. They sit right now at this workflow layer that is across all the enterprise systems. And so, it really can play that governance role when these systems talk to one another. And that is a differentiated product offering that is benefited by AI, not hurt by it. >> Yeah, I think it's an important differentiation at the end. And it's nice to be able to break down, like you're saying, their revenue by segment. People can look at the overall revenue, which has continued to grow quite nicely. It's not Nvidia type jumps, right? They're just staying consistent here. What I think is really interesting on them is they haven't missed EPS in uh over four years at this point, which is pretty impressive. uh on here. Yeah, >> they haven't missed EPS. The renewal rates are staying very strong. The growth rates are staying strong. And not don't forget, look, this is also a company that has $5 billion of share buybacks that they authorized back in January. The CEO is going out and buying shares himself. All of management, actually, if you look at the management team, they're all going and buying shares of this company themselves. Like, there's many insiders that are thinking this is genuinely mispriced. And even from a company, you know, financial engineering perspective, they're authorizing buyback raises from two billion to five billion. And so I do think that, yeah, I mean, there are headwinds, right? They had an M&A uh close recently and uh you could say, hey, we don't necessarily know what's going to happen in these contracts because the contracts have a renewal date and we won't know until they, let's say, don't renew into the future. Um but at the end of the day like this is a company that serves a valid use case is going to be benefited from the AI um acceleration like as we go from a Q&A from LLM's over to the agentic use case service now is going to be more necessary not less >> and ultimately if the demand holds up on the AI side of the house then you're going to need governance layers in all of these enterprises because you're talking about companies with tens of thousands of employees Yeah. Yeah, that is a really good point. And I also do want to just mention for those that were looking um I was showing quarterly data before as well. Important to put that together into full scale of years too. When you're looking at the full year, you know, they're now doing over $10 billion in profit a year at this point. And so it's definitely sizable within the company. What's the market cap at now for that one >> for service now? >> Yeah. What are we at? We're at market cap billion. >> 107 billion, which is kind of crazy. Like if you look at it, this this stock was easily double uh at the beginning of 2025. It was over double. >> Wow. >> I don't know. >> It's it Yeah. >> How do you how do you wrap your mind around because right now, you know, it's it's hard to look at something that has come down so much. Sometimes people see a 10 20% dip and all right, this is attractive, right? It's come down to 200 SMA, but something cuts through it. Uh a good example right now is I think like Netflix, right, and Service Now and some of these pieces. Netflix had a new 52 week lows today. >> Yeah, we can talk about that actually. That's that was an interesting earnings. >> Okay. So, let's talk about that. Like something like Netflix where people are like, "Where do I buy if I'm interested in this?" And how do you think about that as an investor? >> I mean, look, I think we're going to get into like a very esoteric type of conversation because Netflix is cheap, but what you got to be careful for is buying value traps out there. U because like Netflix was cheap all the way back when they were in the bidding war. um for for that acquisition. What was it? Was it Discovery? >> Warner Bros. something. >> Yeah, exactly. >> When they were in that acquisition talks like Netflix got hit really hard. Yeah. >> And when it turned out that you know it's not happening, they still continue to get hit. Right. I haven't seen this earnings but the numbers were fine. Like they met expectations. I think it was on the back of guidance that they sold off and what they're down like 8% I think it was uh after hours. >> They Yeah, they've been getting flogged all year though. Netflix is down. It's at 68 bucks. Netflix is down to 2024 levels. And I mean, this is a price at $68. This is where it was at the top in in 2022 at the end of 2022. And so, how do I see this? Well, I see it as is this do the fundamentals make sense from a valuation perspective? like can I have uh healthy ROI from a ratio point of view in terms of what the company is making revenue-wise, EPS- wise? I mean, it's different for different types of companies based on their maturity. Number one. Number two, what are the catalysts going forward for this business? Like what can I feasibly see Netflix coming out with? Is there something around the corner that can serve as a catalyst? In most cases, if I see draw downs such as the Netflix one or the service now, like those will get me interested and I'll start to look at it more closely, but it's not that, you know, I'm not pulling the trigger on everything that has a draw down, right? Cuz I I need to have an actual bullcase. I need to have an actual catalyst and a reason why I'm buying. In the case of Service Now for example, like I understand how this business could be misconstrued for something that's going to get disrupted by AI because people see it and the description is that it's a software as a service company. AI is displacing software as a service companies. Like that is a true statement across many companies that don't have a moat. However, in this particular case, Service Now will prove resilient and will have a moat. Now, in the case of in Netflix, what is that actual thesis? I'm not just going to buy something because it's cheap. Because if Netflix is trading at 50 bucks six months from now, I can't resort on that. I need to come back to a bullcase, a reason why I bought it in the first place to say, okay, does this still hold or does it not hold? Irregardless of stock price, right? If I couldn't ever look at a chart ever again, what would I buy? >> That is a very interesting question. Do you feel like more people need to ask themselves that? I don't know. I feel like today for sure because I feel like people are like the velocity is much higher with algorithmic trading with Trump coming out and tweeting stuff like >> Dell. Yeah, [snorts] >> dude. Seriously, like you cannot take a break from the market because so much happens every single day and that is exciting. Like we live in the best times, but it's also terrifying, right? because people are so focused on short-term, you know, profits, essentially short-term gain and they completely fail to to to see the forest cuz they're so zoomed in to what's going to happen tomorrow. Like I made a trade today and I sold at the money cash secured puts on Nebius and it was for 175s. I sold puts and the expiry for those is December. Like we have two earnings coming up from now until then. You know, I think Nebus is going to be much higher >> than it currently stands. I don't know what it's going to do next week. Next week it could fall to 150 or 140 and people would would call me out and say, "Oh, that's a bad trade." But guess what? 6 months from now, I have a better chance of predicting that than I do next week. >> For sure in this market, by the way, we do have breaking news that just came out right now. PayPal PayPal's board views the reported 53 billion offer from Stripe and Advent as inadequate. They have rejected the bid. >> We could have guessed that. I mean, look, man, they have a fiduciary responsibility, right? PayPal was trading for 90 bucks in uh in at the end of 2025 or November 2024, they were 90 bucks. That's like almost 50% higher than here, right? So, like the board is not going to be just accepting a a $60, you know, take private offer from from what was it from Stripe? >> Stripe and Advent. And yeah, it was a $53 billion takeover offer. Their current market cap is 50 billion. >> It's not going to happen. I mean, I could see them uh driving it up to like 75 80 bucks a share. Ever since they kicked Chris out, I think the new CEO is completely around how do I improve opex and eventually, you know, package this up for a sale. So, I think the goal is very much there from the PayPal team. Like right now, PayPal is leaning super heavy on their legacy >> brand, let's say. Um, >> but and their fundamentals look fine. Like the business is is doing fine. It's not really the most exciting business in the world, but they're not going to go bankrupt anytime soon. So, there is value there. >> Yeah. Down 81% from all-time highs currently. I believe that they were down 90% from all-time highs. Uh yeah, 86 87% prior to this move. Agree with you. They're not going anywhere. Um although they've been giving me struggles using their service. They've been annoying me a little bit. Maybe that's part of what's going on. >> You own the stock? >> No. No, I don't own any PayPal stock. I I sold uh my PayPal stock. Let me see. I I never owned like a ton of PayPal stock to be honest. Um >> transparently when I have bad experiences with companies, it is more difficult for me to be an investor in their stock. And PayPal, uh I do a lot of business over PayPal and I pay people and they have locked my account like three times for like something that was in an invoice or something and I'm just like this is annoying. I'm like you're not going to be bullish here. So it it wasn't just because of that, but it was a combination of that and you know a stock that's just been going down for so long. Let me see. Yeah, I never had a a big position. I had a I guess I had a small position that I sold Jan January 15th. I sold my rest of my position. >> It's probably a good move. >> I think uh you know if if you did want to play PayPal like here's how I would think about it, right? I mean, this is not financial advice for anybody listening, obviously, but how I would personally think about PayPal here is buying some at the money call options on the off chance that there is a second bidder that comes in and you get into a bidding war scenario because it's purely from a risk-to-reward perspective. If I put, let's say, $1,000 in some call options expiring, I don't know, six months from now, let's say, call it at the money, I could lose $1,000. But if there is another bidder for if they raise the bid to, let's say, $70 a share, well, all of a sudden, I'm going to double that and then some potentially. So, it's about how do you control risk while at the same time operating with the limited information that you have to to potentially make outsized return. >> Yeah, that makes sense to me. Do you still own any PayPal? >> No. >> Got it. Yeah. I mean, I I I guess it's essentially back to where I sold it at, but it seemed like a great sell at the time because it then plunged off that cliff. If you remember that uh 20% down day back in February, like two weeks after I sold. I was like, "All right, well, glad I didn't stick around for that pain." >> Um, blew up some portfolios back in the day for sure. I think like it completely like it was in the retail sphere. Finex was talking about it all the time and now I don't see anybody talking about it at all. Ever since Alex Chris left like he was the last hope for PayPal to organically turn it around because he came and fresh blood you know completely changed the executive team and he said we're going to shock the world do this and that and nothing really happened. He got fired and and like that's when all the excitement from PayPal died down. >> Yeah, that's fair. Let's rotate to another fintech that I believe you do have exposure to right now and that is SoFi. So, you mentioned that you're writing covered calls on about 20% of your shares right now at a 0.1 delta monthlies and you have a leaps position fully built out and no changes to your current share count. Um, successfully bought back your cash secured puts at 80% profit. SoFi. I mean, this feels like I it's just in a weird position with SoFi. I feel like SoFi, I don't know if you follow sports and stuff, but like I feel like SoFi to me is like not a good comparison. Like a Terry Judy or like uh someone on a team that's like, man, they were hyped up and they were they've had good moments and they've been okay, but overall bit disappointing it feels like. And you keep on getting your hopes up. You know, you keep seeing uh more internal purchases, right, uh from the CEO. No, no. just just buying more stock and putting his salary into stock and at the end of the day it's just sitting there you know it started out the year it was trading at Jan 1 I believe that we were trading at about 26 and a half bucks it's trading at 17 now it's never given you know a huge drop since the beginning of the year just kind of traverse how do you look at the stock >> oh man okay so I'm going to I'm going to step in to to try to defend Sofi a little bit um SoFi is a company that I've been making content about for about five years now. It's one of the OG companies that I've consistently been following for that entire time. Okay. So, from a let's say history in my portfolio, SoFi is definitely the OG in in that whole portfolio. We have to really break apart here the stock with the company. The stock has underperformed heavily this year. Okay, nobody is doubting that. I'm not going to argue against that. >> The company on the other hand is firing on all cylinders, right? Like you have over 40% growth. You have the loan platform business which is knocking it out of the park. You now have the SoFi USD which they just recently launched. Big business banking launching in July. Like there are so many green shoots for this company. And the only thing that, and I posted about this recently, the thing that's hurting SoFi right now from a market perception point of view, it's not hurting them from a business point of view, don't get me wrong. Right? >> Market perception is the rate environment. Okay? They had two to three rate cuts as baseline. Well, at the beginning of the year, that's what the Fed estimate was. Two to three rate cuts. Iran happened. all of this stuff, you know, and now like we're talking about having a rate hike from Worsh in in potentially July or September, right? >> Yeah. >> That narrative is detrimental because SoFi essentially trades in a basket with other financial services companies and financial services companies have gotten hurt across the board. Yeah, SoFi maybe has gotten hurt more disproportionately or or you know maybe a little bit more but at the same time this is a company that when we were expecting two to three rate cuts we were at all-time highs at 32 bucks right and now all of a sudden when management for the first time did not raise their guidance because and even that I think is bullish right because if you think about management like they have a history of always double beating and raising guidance and that's probably what you're going to get when they report earnings in a couple weeks. Q1 was the [clears throat] first time that they didn't raise their guidance. They maintained their guidance. Why? A lot of people took this to be very bullish. But why? Because their original guidance had two rate cuts baked in. Their current guidance has zero rate cuts baked in and they still maintained it regardless. SoFi can do well in any rate environment. They've proven that. They had a student loan moratorum, right? They had a high rate environment where personal loans really carried the water for the entire business. And now in a lower rate environment, you expect student loans and home loans to really do well. You expect the loan platform business to do well. And especially as they are back into crypto now, there's a lot of innovation that's happening on that front as well. So with Sofi, like I think the gap between the company and the stock, >> yeah, >> is massive. I think the company is misunderstood and misappreciated. And that's opportunity for for somebody like myself. So what did I do? You know, when Anthony was buying shares, I was buying LEAPS. And my position has been fully built up for a long time. My cost basis is in the single digits with SoFi. Like I said, I've been making content for SoFi since they uh spacked back in 2021 from my POE. And like I think is a is a great leader. I think he's a competitor. I think he wants to grow this company to be much larger. I mean, he said uh he shared his ambitions for this to be a top 10 financial institution, I think they can get there eventually, and they're executing to get there. Like, you tell me another bank that's growing over 40% year-over-year, >> you know, and they're vertically integrated to some degree because they own the technology uh underlying like the the the actual rails the Galileo technicus put together. Many people see that tech platform as something that is a B2B side of their business. And yes, that's been the most disappointing side of SoFi's business. It hasn't held up on growth. But management has said, "Look, first and foremost, the SoFi consumer business is the number one customer of the technology platform." And only after that do we service and build for other customers. Because of the technology platform, they have unlocked vertical integration that helps in their margins, that helps in the actual rates and APYs that they offer and much more from a speed perspective from crypto, for example. Right? So there's so much I could ramble on about SoFi for all day, but the the point that I'm trying to make is that I could literally put my entire net worth into SoFi, go to sleep for 5 years, and feel no ifands or buts about it because I have confidence in the execution and the health of the underlying business regardless of what the stock does. Guess what? We're going to get into a rate environment maybe in 2027 where we have rate cuts back on the table and sofa is going to go back to all-time highs. >> And like I know that to to be like I'm I'm the most secure in that and that's why I'm buying LEAPS, right? I'm buying LEAPS, $25 strike, $18 strike, $20 strike in 2028 because I know by 2028 we're going to turn this rate environment around. >> Wow. Yeah. So, let's take a look at the data for a second and then I do have a bit of a funny question on this one as well. But you talked about it really, really well there. The earnings continuously accelerating here, right, over time. And this is, you know, I just showed everyone on EPS for the last stock that we were looking at, but this is pretty cool to see, right? They've beaten revenue every single quarter for over four years straight here. You pull out the 10 uh last 20 quarters, they've beaten every single quarter. I mean, that's all the data that I have uh unfortunately inside of here. uh but literally they have not missed uh on revenue and they have not missed on EPS uh since Q2 of 2021. So that is four years straight of beats on revenue as well as on uh earning uh on EPS obviously we talked about the stocks down about 33% right now. They did see that pump I think when the moratorum came off right to go to alltime highs >> and then they also of course had you know the rate cuts and some of those pieces that you were mentioning there as well. They're estimating, they're going to report here in just 13 days, estimating over uh 1.1 billion dollars of revenue for that as well. So, there's definitely a lot to be excited about and look at there. I do want to ask one thing because I think it's a little funny. So, SoFi is not available in Canada right? >> No. Yeah. No, they're not. >> Would you uh would you use the app if they were available in Canada? >> I would absolutely use the app, but I think there's a lot of benefits that uh an app like Sofa would provide. I've I've played around with it. Um I have you know friends in the states as well I visit all the time. So like um I'm familiar with with the app experience and some complaints that people have had also with the app historically the sofa invest experience but yeah like I think there's a lot of things that are not available in Canada right Robin Hood's not available in Canada and >> not yet >> just not yet exactly also you know one other thing on that that I want to mention don't forget because we have earnings coming up SoFi made three micro acquisitions at the beginning of this year right they have primary bid for IPOs they bought Peach and they bought uh Composer as well to bring that AI side into the invest experience. Like those are going to start to pay dividends as well in the not only in the UX but >> shout out to Composer, former Wolf client >> actually. >> Yeah. >> Love that. [snorts] Yeah. Like those are going to start to pay dividends as well like in the retail investing platform. Um, and it's ultimately going to lead to a higher level of cross-selling and it's ultimately going to lead to a stickier member and I think that growth is going to accelerate even further. So, we'll see what they do. >> Yeah, very cool stuff. All right. Uh, I've picked your brain a good amount here. want to make sure if there's anything else that you think would just be helpful for investors and traders as it continue throughout the rest of 2026 to just keep in mind any lessons that you would impart upon them. What would those be? Oh man. Um I don't know, man. Like don't bite off more than you can chew. I know it's very tempting and I know like in many cases I'll write cash secret puts on margin or or make some trades on margin and that's all calculated. Like I have a plan A and a plan B and a plan C as to like what could happen uh in the worst case scenario, but it's very easy I think to blow up your account. I was reading what was it like one in 30 >> males in in Korea are getting margin called this week. >> Yeah. >> Don't do that. >> Real life Squid Games, >> dude. It's seriously, man. Like but I get it, right? Because that is the dark side of having a market like this one where it's, you know, euphoria in terms of what could potentially come. Like people will say, "Oh, this is it because this is the next paradigm shift. This is like the internet. This is like cloud. This is, you know, this is AI. It's it's bigger than all of those combined." And it's so easy for somebody who's not wellinformed to bet the entire farm and, you know, not be able to sleep easy at night. So, I think make trades that you can sleep easy at night with. for me like yeah sure I'll I'll I'll ape in 25% of my portfolio into Nebius and I'll buy LEAPS and I'll sell cash secured puts and I'll sell covered calls and I'll run the wheel but I'm still like I own a huge position in Amazon a huge position in Meta a huge position in SoFi like these things buffer the portfolio somewhat and I'm not all in on one trade despite how it might seem right so I would say take risk that's appropriate for your portfolio and your knowledge level and please don't blow up your account because you get euphoric about something like you're going to have aggressive pullbacks and I think with alos and with the market that we're in which is so interconnected like something happens in Japan it's going to affect uh markets in North America or Korea or whatever like it's so easy to get shaken out of this market because you're emotional because everything is so volatile especially if you're chasing the AI trade >> I think it's really sage advice especially about building up your core positions so that you can have comfort with your riskier positions is a big take away of what I get from that. >> I bought Micron at 390, you know, was able to hold it through multiple% gains only because I have other significant positions that are a lot more stable, right? And that allowed me to say, "All right, well, let's keep riding this. I don't I don't feel a need to sell it at 5600 um at these pieces." And to be honest, if it dips down to 750 here, I'll just buy more uh at that point. >> Dude, like think about it this way, right? We're on this, we're just chatting, right? you're asking me what my bullcase is on Service Now, on Nebus, on Sofa, and like I'm able to go in depth and articulate the entire bullcase, the catalyst, the leadership, the financials, the fundamental. Like there's so many people out there that are just getting started in investing that are buying something because it's a ticker symbol that they see on X and they're unable to actually articulate the thesis that's related to their investment. And so it's just like as long as you can articulate the thesis and you have a backup plan, if it doesn't play out, then go for it. Like go crazy, but at least do some homework. Like it's not a, you know, infinite money glitch that it's always going to go up. >> Yeah. It's really just the difference between trading and gambling, right? That's what it comes down to. And it's actually even the same when you go to a casino or something like that. Now, of course, going to a casino is going to be gambling. But if you go to the casino and you say, "Hey, I've got $500 to risk, and if I make $1,000, I'm done for the night and I'm walking away." Well, your max loss there is $500. And if you, you know, get to a,000, you actually have an ability to walk away. People that go with no plan, well, they're usually making a few trips to the ATM, right? And they're lost, they're losing a lot more than 500, right? And they're more often than not not making more than a thousand. And so coming in and actually having a plan of hey here's I'm going to execute. You can only have that plan if you actually did the research because otherwise like for me you know if micron was to hit 1500 that's where I would trim a bit based on the actual fundamentals within those pieces. It never hit it. I have no interest in selling it yet. I want to hold it for the long term until it hits that point. Right. And so there are kind of different levels to it. Right. >> Yeah. Yeah, I don't know how people do the casino, but for me, whenever I go, I usually set an amount of like, okay, 200 or 500 or whatever the case may be and this is my playing ground. Like, I I count it lost the minute that I step in there regardless like without even going to a table or anything. It's lost. Like, it's gone. And then I just have peace of mind by that. But like the the the idea that I'm trying to say is that there's a plan when you first enter a trade. If you don't have a plan when you first enter it, like try to write it down. Like this is what I did in the beginning that helped a lot is [snorts] I just opened a notepad and I wrote down a few paragraphs. Here's my bookcase. Here's my contingency plan. Here's my potential exit. And then I left it there in a folder. And whenever some news came out like, oh, Meta's going to displace Nebus or whatever the case may be, it's like great, open your notepad, read back what you wrote to yourself when you first entered the trade. Does it still hold? Does it not hold? >> Yeah. And and within there as well, you can even hold yourself further to it. You know, setting alerts, setting uh areas of potential sale. Uh AI is a great partner for this as well too. You can talk with AI and say, "Hey, I'm entering to this trade. I want to flesh out the thesis together. I want to make sure that I understand what I'm going to sell you. You can alert me, right? You can build agents around these things." So, it's it's just continuing to escalate. Really fun talking with you. Uh obviously, people should go check out your content at Fun of Investing, right? easy to find both on X as well as on YouTube. Anything else you want to shout out? Anything you're looking forward to? >> No, man. This was fun. We should do it again. >> Sounds good. Appreciate everybody that watched. Great audience as always on X. This will go up on YouTube shortly. If you missed any of the earlier portion, this will turn into recording as soon as we finish and you'll be able to view it here. Thank you for watching. Give us both a follow and we'll see you on the next one. Take care everybody. Hey there, it's Gav Blackburg, CEO at Wolf, and I'm so excited to see you at the Wolf Summit NYC on August 3rd. We've got the best names coming to this, ranging from Peter Toughman from the New York Stock Exchange to Vashall [music] from Stock Talk Weekly, and so many other amazing traders, investors, educators throughout the day. It's going to be in Manhattan. We've got food planned for everyone, breakout sessions, and some exciting activities, plus plenty of merch and giveaways. Grab your ticket now. They're just $250 with a public account and you can be one of the few to secure your spot. They're moving fast.