4 Stocks to Load Up on Before Earnings

Hey everyone, welcome back to in our video for today. So in today's video, we have a couple of things we need to discuss. We will talk about the Intel earnings later in this video. And as always, we'll do the in my opinion stocks to look at before they report their quarterly figures because they already quite attractive right now. We'll also look at the current state of the market. We had of course Google report stock went down 7%. We do the full review of Google's earnings yesterday. So if you missed that, that video will be in the top right corner. But as you can see, we see Google was down 7% on Thursday. We see Meta down 3.3%. Why is that? Well, quite simple. The market is like, okay, Google raised capex. Google said that capex is going to go up significantly in 2027. So, you know what? We don't even have to wait until Zuck says the same thing. We'll just drag it down with it even though it is already quite cheap. And then, yeah, all the rest has followed, right? Even an Oracle didn't get a green day despite despite Google giving quite good comments on third-party neocloud or data center players. Microsoft also not getting any love. AMD, we'll talk about AMD because AMD had a big event which is also quite strange that they do this around two weeks before they report the quarterly figures, but we'll talk about that as well. So it is quite interesting that we are again having this conversation about what's the return on investment, what's the return on invested capital, are they investing too much, etc., etc. And yet every single earnings season, these companies put up very good numbers. If those companies were spending an insane amount of money and the numbers didn't look good, then we would all be on the same page and say, you know what, it actually doesn't make any sense here. But Google is putting up great numbers. We've seen the last quarter Amazon great numbers. Microsoft good numbers. Meta good numbers. AMD good number. even Intel, which isn't really a surprise at all that they beat and slightly raised as well because there is just an insane amount of demand now for servers for CPUs, right? So, it's it's really not that surprising. And even with Intel's comments, I won't go over the the full thing, but as you can see right here for the quarter itself, beats for the guide beats as well. It's actually I mean revenue growth is I think the best number we've seen in many many years. They've raised capex to $20 billion for this fiscal year up from $18 billion. I mean everything here is going in the right direction for Intel. They said our Q2 results represent our strongest revenue growth in more than 15 years. Okay, so here they tell us in more than 15 years enabled by greater speed, accountability and customer focus and of course enabled by a very very bad fiscal 2025. We delivered a strong second quarter exceeding our financial guidance on robust demand and improve execution including volume upside driven by higher factory yields and improve cycle times. Now, of course, with Intel, it's it's now worth what again? $500 billion, $400 billion or so. The numbers right now, of course, do not represent the value of the business. But if this continues, right, if this continues to improve, revenue goes up, margins expand, foundry becomes bigger and bigger, then yes, they'll grow into that valuation sooner rather than later. But the signal here again from Intel is the signal that we got 3 months ago also that the demand is there. The demand is there. They're expected to grow in 26 in 27 up until 2028. They see the demand. And so I don't get why we always have to go back to the same questions. Oo near the top of the cycle. Do they need to invest? Yes, these companies need to invest because if they don't invest then they miss out on revenue. they miss out on profits and their competitive advantage goes down the drain over time. Right? Every big tech company needs to invest a lot. They want to invest a lot. And yes, you could even say they're forced to invest a lot. All of them will tell you that they rather overinvest than underinvest. Because if they underinvest, then you can be damn sure that one of their competitors will take their competitive advantage and run away with it, right? And and it makes sense for investors. I know the risk. Oh, overbuilding overinvesting etc. etc. Okay. So, maybe then for a year or two, maybe three years, margins will not look great. But afterwards, yes, afterwards, I do think we're we're going to go back on track. And of course, if you're only here for one or two years, sucks to be you. But for long-term investors, long-term, I mean, captains of these companies, right? the CEOs, the leaders of these companies, they're thinking about this in the long run. And so for them, it makes absolute sense to do this. I'll actually, you know what, I'll actually share a quote. This is Sundar talking about the return on invested capital framework. Obviously, to the extent that our input cost is going up to us, we reflect that in our ability to price our solutions and see returns there. All of that is factored into how we are planning. I think our compute capacity investments in 2027 to the first question I answered I think we are seeing strong demand indicators including long-term deals which we have which are renewing with exceptional demand on a moving forward basis. We are using all that to plan and invest accordingly. I think if anything the dynamics look healthier than where we were about a year ago. That's what gives us the confidence to undertake those investments. Now, of course, you might say, "Oh, what does Sundar know?" Well, I rather trust Sundar than some random dude on the internet or on TV. Also, this user here, Dorian BG93, posted this on the Reddit subreddit, Nebu stock, two years ago. Well, it wasn't really two years ago, was at the end of 2024. A historic photo of Arcadi, which is the CEO co-founder of Nebus. This guy right here with with who? The two founders of Google, Sergey Breen and Larry Page. Now, based on the comments from Google more recently, they said that they were going to use more third-party uh data center sellers, GP, whatever you want to call them. So, I mean there is lower here. And so, do I think that Nebus is worth it before they report their quarterly figures? Well, if you asked it a couple of days ago, I would have said yes, 100% when it was way under $200. Shot back up in a matter of a couple of days, back at $220. Honestly, for the long run, even 220 is quite attractive, but I understand the people that say, "Oh, but I missed the chance to buy it under $200." Okay, then wait. I think it's going to be again a blowout quarter. Great guidance. What will the stock do? Uh that's a coin toss right now because we know we know great report does not mean stock going up. So there is that. Now before continue of course as you know if you enjoy this type of videos hit all the buttons. We really appreciate that. 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/couchinvestor. Thank you uh very much. Also Couch Investor became an uncle again today. So congrats to myself. Now let's focus let's focus on the upcoming earnings week because next week is is quite a busy one. We have Visa, we have Coca-Cola, we have Clack, the Boeing company, we have Microsoft, Meta, Apple, Amazon, Mastercard, ARM. All of these companies, Qualcomm, all of these companies are going to report their quarterly figures next week. I believe we even have PayPal report on uh Tuesday. We have of course uh SoFi on Wednesday as well. Now I'm not going to put PayPal here, but it is quite interesting that Stripe is now reported to acquire Open Router for about $10 billion. So I guess I guess they didn't want to pay a little bit more for uh PayPal or maybe just I don't know. But anyways, PayPal is next week. Microsoft as well for PayPal. Honestly, if they show any signs of any recovery, any strength, whatever, stock is already up to 50, $55 or so, could it get a little bit more of a push and then maybe force some of these buyers to pay up? Maybe. But I'm not getting my hopes up at all. So, let's focus on real quality companies. And I'll talk about Microsoft first. I don't own Microsoft. I know a lot of people do own Microsoft. It's very attractive at these prices right now, right? Look at I mean trading P23 forward PE 20 21 times or so. It's a very profitable business of course here as well. Free cash flow is coming down because capex is going up. Now unlike Google, this one is down 24.5% over the past 12 months. And so Microsoft is a case where we look at the estimates what the market is expecting is a case of it's already cheap right now. We know that they're going to say probably the same thing as Google during the call demand is super high. We continue to invest capex is going to go up etc etc and so even if the numbers are great stock might drop. Now again the only difference here with a Google is that this stock is already beaten down so much and so that could work in their advantage especially if Azure continues to go up and to the right and actually surpasses expectations. Now right now the market is expecting this company to do 87.67 $67 billion in revenue, EPS of $4.24, although there's quite a big difference between the top and the bottom estimates here. As for free cash flow, still expected to generate 17.44 billion in free cash flow. So, we'll see what happens with that. As you can see, the quarter afterwards, the range here is getting bigger and bigger and free cash flow is coming down. Two quarters from now, the market is expecting to see negative free cash flow. So here as well if we get a negative surprise of free cash flow being worse than expected I do think the stock is getting hit but again with free cash flow we've seen that before with even with an Amazon we've seen that with a meta with the flip of the switch free cash flow flips to positive right they are deciding right now we are going to spend and invest an insane amount of money because we believe that that's the right thing to do the moment they think you know what we have reached what we need we are going to slow down those investments. Well, guess what happens with free cash flow? Poof. Flips. Now, I'll go straight into Meta because I also believe that Meta is one of those names that yeah, pick this up right now. It's already cheap enough. Can it go lower? Yes, it was lower just a week or two ago, right? And so with Meta, market is expecting negative free cash flow for the quarter. 841 million to be exact. And that number keeps going down for the next two quarters. And then only a year, close to a year from now, we're going to see it rebound. Although I do think these estimates are completely wrong, right? I think Meta can keep this up for a while unless unless of course we see the business continue to accelerate. And so it makes up for that negative free cash flow. Still expecting EPS of $7.39 and revenue for the quarter to come in at $60.25 billion. Now, with a Meta, we've talked an insane amount of times about this company, right? I cannot stay quiet about Meta anymore. Meta is cheap. Meta just needs to send the right message to Wall Street with Muse Spark 1.1 with the subscription formats and all of that. They already doing a good job. I think now the next step is just making sure we get some numbers out there, right? Some numbers of usage. Maybe subscription is a bit too early to say. I mean not maybe it is way too early to tell us but over time I do think they will share more and more and it will show that okay all of these investments it makes sense the subscription model it's going to generate them billions of dollars a year high margin revenue so all of that makes sense and you're going to see a flip here in sentiment I I again this is an $800 $900 stock right now it's trading at 600 why ask Mr. Market Mr. market is a very short-term thinker and okay that's a huge benefit for anyone that wants to invest in the long term. Moving on to probably the most hated name in retail right now and that's SoFi. Now SoFi again will report their quarterly figures on Wednesday. We will of course go live and I'll do a specific prediction video what I think will happen for the quarter, the numbers and everything. Last quarter we were very very close. So, so far it's back under $17 actually. Now, apparently the implied move is I think between 11 and 14% or so. So, even if we have 11 14% upside, we're basically back to where we were a couple of days ago. So, it's not that great, but ASOI $21 billion in market cap down 39% year to date despite the business showing signs of well, not showing accelerating. It's worth 39% less today than it was at the start of the year. Is it a company, a business that is 40% worse today? No. It is arguably close to 40% better today than it was at the start of the year. The market is expecting to see $1.12 billion in revenue for a quarter. EPS, I would guess it's around 12 cents, 13 11 cents. I think it will reach 13 cents, but that's a story for another day. As for AIDA, market is looking right now at around $332 million. Now, you have to understand that with SoFi, we're talking here about a company that is growing quite rapidly. Last quarter, we have seen an acceleration in growth, 41% year-over-year. Right? Look at this. This is a company that has grown over the past four quarters. 43% 37 37 41%. And of course, we now have a more difficult year-over-year comparison. But still, this is a fast growing company that is also becoming more and more profitable. Guidance was the issue, right? Because guidance stayed the same despite their assumptions becoming worse, which to me equals a positive because usually when the assumptions for your guidance become worse, you adjust guidance on the downside. They didn't do it. Now in this quarter if they do again come in with better than expected numbers but guidance doesn't change I don't think Wall Street will like it because this means that you beat estimates you beat your own guidance and you're still not raising it's a bit strange unless they want to wait for next quarter and then really beat the full year and raise and do all of that thing. Okay. But I do think that we're trending right now in the direction of if you keep beating estimates and your own guidance, it will be strange if you don't raise your fullear guidance. But here as well with SoFi, just like with many others, you know, good numbers do not translate into positive stock reaction. It has become a meme. We know this. We know that even when pre-market we are up five 8% or so during the day we can close out the day red. We know this. But what is the most important thing as always you know it is the business. If the business is trending in the right direction, if everything is going the right direction, that's the most important because eventually, yes, eventually the macro overhang will go away and suddenly suddenly oh, suddenly it's it's an amazing business even though the business is already doing quite well right now. Strange times, but again, for long-term investors, I do think this is the best time to look at it. Of course, the best time was maybe when it was trading at $7, $8, but it is what it is. It is, in my opinion, a better company at $16 than it was at $78. Up next, we have Reddit. Reddit is also down 30% year to date. $32 billion in market cap back here at around $170. Why is that? It was at 200. What happened? What happened was the headline, the report that said that Reddit, which got $60 million or so from Google for their licensing deal, said that they're walking away from the deal. According to that report, in my opinion, it makes sense because I do think that the data that Google gets from Reddit is worth a hell of a lot more than 60 million. Now, I don't think the 60 million is the reason why this company has lost billions in market cap. I think it's more about could they then renegotiate the deal and get more money? And what if they don't get a new deal? How big of an impact is the traffic loss going to be on Reddit's business? Well, so far, even with AI overviews being up and running for quite a while, being quite successful, the Reddit platform is gaining traction. Average revenue per user is gaining traction. Advertisers are gaining traction. And so so far this bare thesis doesn't show up in the financials. Actually we've seen what we've seen this company grow what is it close to 70% for the past three quarters in a row. Last quarter 69% quarter before that 69 then 68 or so. So this is a fast growing company despite everything in the headlines. It's a fast growing company that is also becoming more profitable. If we go and look at free cash flow, right, we can see that free cash flow is also going up. See, up and to the right. It's exactly what we want to see. Now, what is the market expecting from this company when they report also pretty soon? Well, they're expecting $731 million in revenue, which is 71% year-over-year growth. EPS of around 96 cents which is over 400% growth year-over-year. As for free cash flow 255 million which is also more than double yearoveryear. So again here we're getting in my opinion a good opportunity. The market in my opinion will also yes a lot of opinions here. I know we we the stock market is a market of opinions and guesses if you didn't know that but this is a company that you can clearly see is improving is growing headline wise yes this needs to be addressed what about the licensing deal they they believe and they've already told us that they think better deals are going to come which honestly I think they're right because why would they sell it for such a low amount doesn't make any sense if the data is truly that valuable Well, 60 million is nothing. So, they should be asking way more. Now, of course, I could go on and on and on and talk about new holdings, talk about Marcado, Libé, Uber. Although, with Uber, with the acquisition, you always have more time than you think because with huge acquisitions, the stock usually stays flat until there is more certainty. But a new American businesses I would even put Palanteer. Palanteer right now 120$123 dollars per share. I think they will again crush absolutely crush it and show yet again why they are one of the biggest winners in this whole AI/Software space. Now I do want to focus a little bit on AMD. I will not put AMD as a name where oh you need to pick it up before the earnings because stock is already up significantly right now it's 886 billion in market cap but AMD did have an interesting event the AMD advancing AI 2026 event and they told us a couple of things one the AI accelerator market now is seen at 1.4 4 trillion by 2030. That was 500 billion by 2028 last time that they spoke. I believe server CPU time has been raised to over $200 billion by 2030. That was 60 billion at the start and I think 120 billion or so, not so long ago. Helios rack is in full production. Shipments start end of Q3 2026 ramping Q4. Something we've talked about before. It combines the MI455 GPUs, Venice CPUs, and Pensandos networking into a single rack scale system. Versus the MI355, they see 34 times more throughput at highest concurrency, 18 times more tokens per dollar with MI455 versus the prior gen, 30% more tokens per dollar versus competition at Iraq level. And we have a couple of announcements, right? Okay, the OpenAI and Meta one, we know about that, but they added entropic. And so the commitment here for Entropic is up to 2 gawatt of Helios. The deployments of the first gigawatt will begin in the first half of 2027. We also had a new announcement with Cerebras, new joint disagregated inference product with Helios. They see five times more throughput versus Cerebras alone. This will ship later this year. Cerebras AMD Gro Nvidia, you get the picture. As for the CPU side of things, CPUs are getting a hell of a lot more attention. AMD says CPUs are becoming as important as GPUs as agents create a new sandbox compute category. They saw 46% record server market revenue share last quarter. Probably it's going to stay the same or improve a little bit. 1.8x more performance versus their prior generation. 2.8 times more agents per watt versus the leading ARM CPU. In all of their slides, they're taking shots towards ARM and Nvidia every single time. Venice is in full production. They said strongest demand they've ever seen for a new epic generation. Every major server OEM and cloud provider on track to roll out in Q4 2026. This is the broadest epic launch to date. And this is why I've been saying time and time again, AMD today is worth 900 close to $900 billion. Not because of what it has done right now. It's because of this. It's because of what's going to happen Q3, Q4, 2027. Right. And by the way, in 2027, we will get the introduction of the MI500 series, but back half of 2027. They said that the MI500 is projected to deliver over 2,000 times higher inference throughput than the MI 355 with just four years of generational steps. Again, you're not buying AMD of today or tomorrow. you're buying the AMD of 27 and onwards because that's when you're going to see the huge impact of the MI400 and the Mi500 series. And of course in 2028 2030 you have other generations coming out. But let's now focus on the MI400 series and later in 2027 the MI500. But this again goes to show that AMD, yes, it might be viewed as the number two player versus Nvidia, but AMD right now is finally finally releasing a product that is super competitive and in some cases maybe better than Nvidia according to them. But at least it is very attractive for the huge huge players out there, the Microsoft, the Antropic, the OpenAI, the Metas etc etc. And we are going to see we are already seeing growth accelerate. Remember with CPUs, AMD CPUs was quite important and is very important to them right now. This is why Nvidia also went into the CPU way because they know CPUs getting extremely important and that business is going to grow and grow and grow and so yeah, whenever we say, "Oh, how much more can these companies grow?" Well, I do think we still have some time for these companies to grow more and more. And remember, all of these companies are also looking at ways to become more efficient, especially when it comes to memory. So just because memory players, right, might get hit in 27 or so doesn't mean it's bad for these players. Actually, on the contrary, it will become better for these players because maybe pricing will be more attractive to them. So the whole margin picture here will be more attractive to them as well. Anyways, a lot a lot that has been discussed in this video. Pre-earnings buys are always a gamble, right? Even if the quarter is good, as you know, the stock can go down. And so, if you want to own something, maybe buy half before and the second half after. So, you don't have any regrets because if the stock goes up, at least your first half is going up as well. You got more information, you buy again. And if it goes down, but a quarter was good, then okay, then your second half can help you lower your average. And if it's a bad quarter, you don't like the information, then at least it's only one half that got hurt. You sell. Thank you very much, Mercibuku. And you're gonzo. So, all in all, that's all I've got for you in today's video. I hope you all have a very good weekend. See you all in the next one. Bye-bye. [music] Hey, [music] [music]