About this video

• Video Title: Once in a life investment opportunity is coming.
• Channel: Financial Education
• Speakers: Not specified in the transcript.
• Duration: 39:40

Overview

This video discusses the current state of the stock market, highlighting significant downturns in various tech stocks due to economic conditions and the rise of AI. The speaker analyzes potential investment opportunities, focusing on the SAS (Software as a Service) sector and the potential for a PayPal acquisition. The video also touches on the impact of AI on different industries and provides advice on long-term investment strategies.

Key takeaways

• Market Volatility and Opportunity: The speaker emphasizes that periods of market stress, like the great financial crisis, present significant opportunities for investors who are brave and financially prepared.
• AI's Impact: The rapid advancement of AI is seen as a threat to some business models and jobs, but also as a potential driver for growth in certain sectors like AI chip manufacturing (Nvidia, AMD) and cloud services (Microsoft, Google).
• SAS Sector Potential: Despite current market downturns, the speaker believes SAS stocks are nearing a bottom and present a strong long-term investment opportunity due to their robust business models and attractive valuations.
• PayPal Acquisition Speculation: There are strong indications and analysis suggesting PayPal could be a takeover target, with potential acquisition prices estimated between $75 and $100 per share, presenting a short-term profit opportunity.
• Long-Term Investment Focus: The speaker advises investors to remain focused on long-term value, conduct thorough research, and make decisions based on fundamentals rather than short-term market sentiment.

Here are the stocks mentioned in the video and the main takeaways for each:

• IBM: Mentioned as getting "slaughtered" and down significantly, indicating a strong sell-off and poor performance.
• Amazon: Initially cited as potentially irrelevant due to AI, but later mentioned as having strong performance with a low forward P/E ratio (25), making it attractive, especially considering its AWS and e-commerce growth.
• TSLZ (likely a Tesla-related ETF or stock): Mentioned as moving up "quite dramatically" on the day of the recording.
• PayPal: Highlighted as a potentially significant short-term opportunity due to takeover interest. The stock is seen as a "money printer" with a low forward P/E ratio (around 7) and is expected to sell between $75-$100 if acquired. Investors are advised to watch options activity for signs of a buyout.
• Celsius: Mentioned as holding "incredibly strong" despite overall market weakness.
• Estee Lauder: Also mentioned as holding "incredibly strong" despite overall market weakness.
• Microsoft: Noted as down 30% from all-time highs, but later discussed positively for its strong Azure growth (nearly 40%) and a reasonable forward P/E of 21, suggesting it's not overvalued given its performance.
• Palo Alto Networks: Mentioned as down 36% from all-time highs.
• Crowdstrike: Mentioned as down 38% from all-time highs.
• Palantir: Mentioned as down 38% from all-time highs.
• AppLovin: Mentioned as down 50% from all-time highs.
• Salesforce (CRM): Seen as a strong SAS stock that has been beaten down significantly (down 52% from highs) but is now trading at attractive valuations (forward P/E under 14) with double-digit revenue and EPS growth, suggesting a potential bottom and strong future performance. Its "Agent Force" platform is also showing rapid adoption and significant revenue growth.
• ServiceNow: Mentioned as down 57% from all-time highs, but still a strong performer with a forward P/E of 24 and around 20% revenue and EPS growth, indicating it's attractively valued.
• Adobe: Mentioned as down 65% from all-time highs, but has strong earnings growth and a low forward P/E of 10, making it an attractive investment with potential for a bottom in Q1.
• Bitcoin & Ethereum: Both are described as "incredibly weak" and are key indicators for market risk-on/risk-off sentiment. Bitcoin's cycle suggests a bottom around $20,000-$30,000 in Q4 of the current year.
• Hims: Noted as losing "nearly half of its value" in the past month, indicating significant recent weakness.
• MicroStrategy: Mentioned as down from over $400 to $123, showing a substantial decline.
• Robin Hood: Mentioned as down from around $150 to $71, indicating it has been "over cut in half."
• Coinbase: Mentioned as down from over $400 to $159, also "way over cut in half."
• SoFi: While not hit as hard as some others, it's mentioned as being down to $18 a share.
• Duolingo: Described as "brutal," having fallen from over $500 to $16 in nine months, representing a massive drop.
• Tesla: While not explicitly given a performance takeaway, it's used as a hedge against market downturns due to its volatile valuation. The speaker plans to sell hedges if the Q's drop 7%+, and notes Tesla sells off harder than the NASDAQ/SP500 in downturns. The potential SpaceX IPO is also seen as a factor that could draw capital away from Tesla stock.
• AMD: Discussed in the context of AI, with the speaker finding its stock price (under $200) illogical given the expected demand for AI chips. The speaker believes AMD should be priced much higher if AI truly dominates.
• Nvidia: Similar to AMD, the speaker finds Nvidia's current stock price (under $200) too low given the demand for AI chips, suggesting it should be priced at $1,000. It's also noted as having a low forward P/E (around 26, potentially closer to 21-22), making it attractive.
• Meta: Mentioned as having a 24 forward P/E ratio and expected to report strong revenue growth (over 30%), but its stock price appreciation might be hampered by significant depreciation expenses from its metaverse investments.
• Apple: Highlighted for having strong numbers and a reasonable P/E ratio (34), and is considered one of the few companies not significantly disrupted by AI.
• Google (Alphabet): Seen as a major AI beneficiary with a P/E of 27, which the speaker considers potentially too cheap given its AI prospects (Gemini, chip business).
• Broadcom: Trading at a forward P/E of 32, considered not expensive given its rapidly growing business and position as a significant AI beneficiary.
• Berkshire Hathaway: Trading at a P/E of 22, indicating a more stable valuation.