The Bottom Line:
- SoFi continues to execute earnings and is trading below the target price, making it an attractive buy.
- Meta, despite recent challenges, has a long runway for growth and is trading at a reasonable forward multiple.
- PayPal, although frustrating, has tangible news that will add to the bottom line and is a good place to invest for eventual returns.
- Palantir, while requiring averaging up, is a stock where share count matters in the end.
- The video discusses a total of 16-17 stocks on the watch list, with the mentioned stocks being the closest to the target prices.
SoFi: Executing Earnings and Trading Below Target Price
Consistent Execution Despite Share Price Struggles
SoFi continues to execute quarter after quarter, delivering strong earnings results. Despite this consistent performance, the stock remains depressed and trades below my target price. As long as the management team keeps executing, I will continue to add shares to my portfolio whenever the price dips below my target. The cheaper valuation, coupled with increasing earnings each quarter, makes SoFi an attractive investment opportunity.
Accidental DCA Leads to More Shares
I recently completed my dollar-cost averaging (DCA) plan for SoFi last quarter. However, I accidentally added one more batch of shares, having forgotten that I had finished my DCA. Nonetheless, I’m content with this mistake, as I believe in the company’s long-term potential. As long as SoFi’s share price remains below my target, I will consider adding more shares to my portfolio, focusing on building my share count for the future.
Long-Term Outlook Remains Positive
SoFi’s management team has demonstrated its ability to execute consistently for over ten quarters now. I have no reason to doubt that they will continue to perform well in the future. While the next earnings report will provide further insights, I remain confident in the company’s long-term prospects. As an investor, my goal is to accumulate shares at discounted prices, and SoFi’s current valuation presents an opportunity to do just that.
Meta: Long Runway for Growth Despite Recent Challenges
Challenging Market Environment Presents Opportunities
Despite recent challenges, Meta continues to have a long runway for growth. The company’s strong position in the advertising market, second only to Google, provides a solid foundation for future revenue generation. With massive profit margins and untapped monetization potential in platforms like WhatsApp, Meta has numerous levers to pull to drive bottom-line profits.
Zuckerberg’s Leadership and Vision
While Mark Zuckerberg may be a controversial figure, his ability to run Meta and generate substantial profits is undeniable. Under his leadership, the company has built a massive customer base, which can be leveraged for future growth. As Meta continues to execute on its vision, the potential for increased earnings and value creation remains significant.
Attractive Valuation Compared to Peers
Meta currently trades at a forward multiple in the low to mid-20s, which is comparable to companies like McDonald’s. However, when considering future growth potential, profit margins, and the ability to generate cash, Meta appears to be a more attractive investment. As the company monetizes its various platforms and maintains its growth trajectory, the current valuation may prove to be a bargain for long-term investors.
PayPal: Tangible News Adding to Bottom Line, Good for Eventual Returns
Venmo Integration with eBay Boosts Revenue
PayPal continues to receive tangible news that positively impacts its bottom line. The recent announcement of Venmo being accepted by eBay as a payment method is a prime example of a revenue-generating opportunity that requires minimal effort from PayPal. This integration, along with other similar announcements over the past month, showcases PayPal’s ability to expand its reach and drive growth.
Consistent Execution Amidst Challenging Market Conditions
Despite the stock’s inability to gain significant momentum and break above the $70 mark, PayPal’s management team has consistently executed on their stated objectives. While the lack of price action may be frustrating for investors, it is essential to recognize that even the best-performing stocks, such as Apple, have experienced prolonged periods of consolidation or decline. PayPal’s current situation is not unique, especially considering the challenging market conditions.
Patience and Long-Term Perspective
As a long-term investor, the focus should be on increasing share count and positioning oneself for eventual returns. While it may be tempting to compare PayPal’s performance to other stocks or hindsight investment opportunities, it is crucial to remain patient and committed to the original investment thesis. As PayPal continues to execute on its strategy and deliver tangible results, the stock’s value is likely to be recognized by the market over time.
Palantir: Averaging Up and Focusing on Share Count
Focusing on Share Count Accumulation
As a long-term investor in Palantir, my primary focus is on accumulating shares, even if it means averaging up. While some may disagree with this approach, I firmly believe that share count is what matters most in the end. Unless Palantir’s stock price craters below $10, I will continue to add shares to my portfolio, as I am confident in the company’s future prospects.
Patience and Conviction in the Face of Volatility
Investing in a company like Palantir requires patience and conviction, especially during periods of market volatility. It’s easy to get caught up in short-term price fluctuations and doubt one’s investment strategy. However, I remain committed to my long-term vision for Palantir and will continue to accumulate shares, even if it means enduring temporary drawdowns or averaging up.
Trusting in Palantir’s Potential
My decision to continue investing in Palantir stems from my belief in the company’s potential to disrupt industries and create significant value over the long term. While the stock may experience short-term challenges, I am confident that Palantir’s unique position in the market, coupled with its cutting-edge technology and strong partnerships, will ultimately lead to substantial growth and profitability. As such, I will remain focused on building my share count and trusting in the company’s long-term vision.
16-17 Stocks on Watch List, Mentioned Stocks Closest to Target Prices
Palantir’s Long-Term Potential Outweighs Short-Term Volatility
Palantir’s unique position in the market, combined with its innovative technology and strong partnerships, positions the company for significant growth and profitability in the long run. While short-term market fluctuations may cause some investors to question their strategy, I remain confident in Palantir’s ability to disrupt industries and create substantial value over time. As a result, I will continue to focus on accumulating shares and building my position, even if it means weathering temporary drawdowns or averaging up.
Conviction in the Face of Market Uncertainty
Investing in a company like Palantir requires a strong conviction and a willingness to look beyond short-term market noise. It’s essential to maintain a long-term perspective and trust in the company’s vision, even during periods of volatility or uncertainty. By remaining committed to my investment strategy and focusing on share accumulation, I believe I will be well-positioned to benefit from Palantir’s future success.
Embracing the Opportunity to Accumulate Shares
Rather than being deterred by the prospect of averaging up, I view it as an opportunity to increase my stake in a company with immense potential. As long as Palantir continues to execute on its vision and deliver value to its clients, I will continue to add shares to my portfolio. By prioritizing share count over short-term price movements, I am confident that I will be rewarded for my patience and conviction in the long run.
