5 Stocks to BUY NOW After Earnings Crash!

Hey, welcome back subscribers. My name is Ali. This is my world of stocks. And uh hey, in honor of earnings season, I'm going to gather up for you guys as many great stocks as I can find here that are currently crashing in price that just reported that I think could be great pickups on the dip. And so today, I found five new ones for you guys to check out. Three that just reported this very week and two bonus ones that reported a little earlier in the month, but all of them are falling very hard after reporting. So, uh, yeah, there's obviously going to be a lot of risk involved here. So, just, you know, as always, be sure to do your own research, due diligence, and make your own decisions. But if you want me to keep this series going, more episodes in the future of stocks that are crashing on earnings whenever that happens, let me know by hitting the like and hype buttons down below. That lets me know you'd like to see more videos just like this and throughout earnings season. Uh, but with that said, we've got some great stocks to run through today. So, let's just go ahead and jump into the list here. Now, of course, we have to start first with Google, ticker symbol G O GL, who's now down about 13% after reporting Q2 earnings, leaving it also down more than a fifth of its value uh from the very top. Now, this one is actually the smallest drop, I believe, of all the stocks that we're going to look at today. the others uh do look a bit more like bigger crashes by comparison. But you know, anytime that a a stock like Google, a company who I do consider to be pretty much the king of the internet at this point, dominating virtually every market related to it, when they suddenly drop by double digits on an earnings report that I actually think was one of the absolute best that I've ever seen from them. Oh yeah, that's going to be pretty much as automatic of a buy as you'll ever find in the market these days. Now, total sales broke nearly $120 billion on mind-blowing growth for that already gigantic size of around 24% year-over-year. It's really crazy. Which just goes to show that all of those fears about AI chatbots, you know, suddenly killing Google's search empire have been completely overblown. In fact, related sales to search actually rose by a monstrous 17%. With usage even breaking new all-time highs during the recent FIFA World Cup. And I would also argue that it had to do too with all of the AI features being integrated into Google Search. This is something that I've been arguing for a long time now against all the Google bears out there that, you know, as Google integrates more AI features directly into the search platform, people might just keep using that what they're already so familiar with instead of having to hop over to any other new apps that they're not as familiar with. And I think these results kind of prove some of this with even their own AI app. By the way, Gemini already uh sporting close to a billion monthly active users while processing over 22 billion tokens every single minute. So basically, people are still using Google search. And when they're not using Google search, yeah, they are using different apps. Well, guess what? Google has one of those apps, too. So, um they're not they don't really seem to be losing any kind of customers or momentum here. They're still growing by all accounts. Now, on top of this, YouTube ad revenue also jumped double digits. And just as important, Google Cloud, it saw revenue skyrocket by 82% with its operating income more than tripling in size, too. While their cloud backlog backlog now sits at cloud backlog, I can't speak today. Sits now at more than half a trillion dollars. How crazy is that? That's a gigantic backlog of future revenues to come for them, too. Plus, already existing cloud customers are even spending roughly 50% more than what they initially committed to. So, in other words, Google continues to be on fire. Everybody wants to use their products. And when it comes to cloud and AI, uh they're proving that they can be a great alternative to even bigger players like Amazon and Microsoft with incredible growth to match. And yet the stock tanked and once again it had everything to do with AI spend which management announced that they'll be raising their fullear capex guidance by $15 billion pushing their expected spending to as much as 205 billion for the full year. Now is this a concern? Yeah, a little bit. Um but is it reason to panic? I don't think so. In my view, the spending is justified to match the biggest new trend out there since the invention of the internet. Talking of course about AI. uh for which over time Google could become the king of or at least one of the biggest players and I'm not saying that they have to be um the absolute leader of AI far from it but just ensuring that they can retain the lead that they already have some of the businesses that are already dominant and just continue to build on them further and integrate more AI features into everything they do is um reason enough I would say to to keep the spending high. Now I believe Google can afford this. uh the business is on fire and I'd rather them be forward-looking than sitting on their thumbs and allowing any competition to catch up or steal market share. So, to me, this dip is just another opportunity to pick up more shares of one of my favorite tech giants in the entire market. All right, next up though, we have a legendary tech giant that recently experienced its worst single day crash since Black Monday all the way back in 1987. And that is International Business Machine, ticker symbol IBM, uh, who saw their stock crater by 25% in a single day, shedding over a quarter of its entire value when they announced some really disappointing preliminary Q2 results earlier this month, which I did make a a separate video on, too, by the way, if you want to go watch it and get a little more in-depth into it. But um yeah, after reporting their official numbers earlier this week, uh the stock is now still down a whopping 40% from their all-time highs. Now, for such a wellestablished blue chip company like IBM, who provides much of the enterprise software, IT consulting, and heavyduty infrastructure like mainframe computers to the business world, well, seeing a drop of this magnitude is pretty rare. So, what caused this giant panic? Well, their numbers did fall short of Wall Street expectations with total sales barely growing in the quarter up to around 17.2 billion while management also slightly lowered their fullear revenue growth guidance down to around 5%. But the real reason I think investors panicked was the explanation for that miss as IBM CEO admitted that enterprise customers suddenly shifted their budgets away from IBM's consulting and software offerings to instead rush into buying more memory chips, storage, and AI servers ahead of all the expected price increases and supply constraints that we're seeing from the AI revolution. In fact, their legacy Z mainframe revenues fell by 42% in the quarter and um we're just kind of seeing that across the board for IBM where these customers are just kind of looking uh to spend more on specific AI hardware. However, uh my opinion is that much of this is looking more like a short-term rep prioritization in spending rather than a permanent loss of demand for them. Companies are just scared of their competition snatching up supply ahead of them. But these chip shortages won't last forever. And when budgets do finally normalize, most of IBM's delayed deals should be coming right back. Despite the headline panic, their high margin software segment actually grew still by 5% with management still projecting a giant 15.7 billion of free cash flow for the full year, which helps pay that nice dividend that's now yielding above 3% with more than three decades of consecutive growth. Let's not forget the future growth catalyst, too. If we look a bit further beyond all of this um craziness going on, well, IBM is um doing many things to to that as investors I think you should be looking forward to. They're, for example, they're rolling out their new um compact Z17 mainframes designed specifically to handle heavy AI workloads right alongside enterprise data, which is very valuable to businesses. Uh they're also widely considered a global leader in quantum computing, planning to invest over 10 billion to deliver a largecale fault tolerant quantum computer by 2029, which would be a full 3 years ahead of the US government's own national target. And speaking of which, the White House is going all in on quantum computing, too, even granting a billion dollars to IBM so that they can build the nation's first pure play quantum chip foundry. And that could be huge longer term. IBM even holds a big software mo too with Kisskits. This is their uh QC platform, quant quantum platform uh that over 70% of the world's quantum developers already use as the default development kit for writing QC code. It's a huge deal. So with the government recently mandating that all crucial federal infrastructure needs to migrate over to postquantum cryptography standards by the early 2030s to prevent advanced cyber attacks. IBM could end up being one of the absolute largest beneficiaries of all of that. It's definitely not something to sleep on. And with this huge haircut of around 40% leaves him trading roughly 30% cheaper than the sector median on on valuation metrics. I actually started scooping up shares myself of IBM um recently too and I like it here. Okay, with that said, stock number three is going to be a big enterprise software company that is experiencing one of the most brutal beatdowns in the entire market right now and that is Service Now, ticker symbol NW. Now, uh this is the company that acts as basically the central nervous system for the Fortune 500. It offers a suite of software applications and tools used by companies to manage and automate workflows across IT, human resources, and customer service operations. But lately, the stock has been getting absolutely crushed. It fell about 14% this past week despite strong earnings. And zooming out a bit, it's even down a massive 60% from the very top. Again, though, earnings this week were actually very strong. In fact, the stock initially spiked on them because of how hard it was to ignore that. the the uh the positive numbers. Uh sales and profits, for example, easily beat expectations. Their total revenues soared by 24% year-over-year. Their margins beat expectations, too. And even their remaining near-term bookings rose 21% to more than $13 billion. But because of the current what is being called SAS apocalypse going on where everyone is fearing that aentic AI will ruin all of these software companies, well, the stock just continues to get pummeled. On top of which, uh, other software companies like Pegasus and IBM, who we just talked about, well, they've been warning that customers are delaying their software purchases to spend more money on AI hardware instead, which could hurt short-term demand. But I disagree with most of it long-term. This is still a very sticky platform with high retention rates. As the CEO pointed out, now's terms for their contracts have actually gotten longer, not shorter. and the demand for their own AI products is actually outperforming expectations too where instead of AI killing their business, the CEO argues that broader AI adoption will actually [snorts] increase demand for them because more AI means more incidents which drives more volume directly to Service Now who's expanded their cyber security offerings by acquiring companies like Visa and Armis. They also launched their AI control tower which gives businesses a central place to monitor, manage and secure all these new AI agents. And the platform even includes a new kill switch. Now that is absolutely crucial for stopping rogue AI agents whenever they go off the rails, behave unsafeely, or get stuck in the same loop patterns. Open AAI, for example, just had one of their AI agents go rogue recently, too. Anyway, the point being that Service Now is positioning themselves to benefit from multiple growth catalysts in the future. And we can see the results directly in their financials and in analyst projections. But with the stock down as much as it is, it's now trading at the lowest valuation metrics that I've ever seen for this company at even a PEG of less than one, which is over 24% cheaper than the sector median. And to me, it looks like a big overreaction for a company that is still performing very well. Okay, with that said, I do have just two more bonus stocks for you that actually reported a little earlier in the month. And first up, we have the snacks and beverage king, PepsiCo, ticker symbol PEP, PEP, who's uh slightly disappointing earnings. Unfortunately, kept an ongoing crash going for them where they've now lost over 35% of their value from the very top. But uh yeah, for me it's more of a blessing in disguise because this is a giant leader here who rarely ever dips and I don't get to buy it at a discount very often. So I am using this opportunity to scoop up shares from Pepsi to Mountain Dew to Gatorade, Quaker Oats, Fritos, Doritos, Cheetos, and a lot more. This is a defensive titan here that I love holding in my portfolio. But the latest earnings showed a tale of two different businesses because internationally the company is doing fantastic with global food volumes increasing by 3% while the beverage segment saw an even bigger jump in the double digits. And because of that total revenues actually beat Wall Street estimates rising 6.4% to more than $ 24 billion which is very strong for their already gigantic size. But the market completely ignored that and focused more so on the weakness in North America where domestically their food segment saw flat to negative volume while their beverage volumes actually declined too by about 4%. The CEO pointed pointed uh to tightening budgets of US consumers for the cause noting that rising inflation and spiking gas prices heavily impacted foot traffic. But I just think that it's more of a temporary blip than a bigger cause for concern. PEP continues to dominate their markets, and they've even proven to be very capable of finding new growth opportunities as consumer trends change, particularly shifting towards low sugar, low carb, and prebiotic options. For example, whenever a rising threat pops up in the beverage or snack space, PEP simply acquires them or launches their own highly successful version, which we've seen them do through acquisitions like Soda Stream, CF Foods, Poppy, alongside launching their own brands like Bubbly, or making alterations with protein chips and prebiotic soda. Even securing giant distribution partnerships too with fast growing brands like Celsius and Alani New. I know it's a scary phrase to say here, but I really do think that PepsiCo is just a bit too big to fail at this point. And because of this recent pullback, I'm now able to scoop up shares at about the same valuation metrics to the sector. It's one of the absolute best dividends in the market. PEP is not only a dividend king with over five decades of consecutive growth, but their yield is also among the highest levels I've ever seen from them now, quickly approaching 4.5%. That's just too good to pass up. All right. And finally, uh, for stock number five, the second bonus crashing stock here, we have a high-flying medtech pioneer that just took another big fall after reporting, and that is Intuitive Surgical, ticker symbol ISRG. Now, full disclosure, I actually choose to own Medronic stock instead, which I prefer for the cheaper valuation, the attractive dividend, and their broader type of business model across multiple medical device categories. But if you're someone who wants a pure play leader in the rising market of robotic surgery, then Intuitive is probably the best choice to go with, which also happens to be far off of its highs, dropping about 13% this week on earnings, uh, leaving it also down over 30% in the past quarter and even down roughly 50% from the very top two. And what makes this crash even more interesting is that uh their Q2 numbers were actually pretty strong. Total revenues surged 19% year-over-year. Profits blew past estimates to top a billion dollars. And worldwide procedures using their flagship Dainci Systems jumped 15% too, bringing their total installed base now to nearly it's like getting close to like 12,000 robots globally. But Wall Street chose to focus on a few headwinds instead. Namely, procedure growth slowing down in America with the expiration of the enhanced affordable care act subsidies. There's also growing fear out there that popular GOP1 weight loss drugs are reducing demand for weight loss surgeries. And there's even been some tightening of healthcare spending in China, which could turn into a bigger drag over time. But for growthminded investors that have been waiting for a decent entry point into this leader, they might have just found one. First of all, robotic surgery is a long-term trend that I don't ever see going away. In fact, the rise of AI doesn't even threaten it really in my opinion. If anything, it actually enhances it with new algorithms and better precision that should make Intuitives robots even more accurate, thus raising demand. And combine that with an aging global population that will naturally require more surgical procedures over time. Intuitive's own flywheel business model that generates high margin recurring sales on all the instruments accessories and maintenance required for every single procedure performed ultimately gives them a huge runway for growth long-term, which analysts seem to agree with when you look at future projections with today's price being the actually very floor on even the most bearish analyst price targets, too. So, that does look pretty attractive to me here coming off of these earnings. But hey, there you have it, guys. five stocks to look closer into on the earnings dip. Uh let me know if you'd like me to keep this series going with more crashing stocks that just reported um in the future. And let me know what you think about each of these ones down below too that we covered today. But hey, as always, uh I thank you guys so much for stopping by. I hope you're all doing well, my friends. And uh I will catch you in the next one. All right, take care everybody. Bye-bye. [music]