Summary
Highlights
The video marks the beginning of 2026, outlining significant events for January. These include CES, a full economic data report, a Fed meeting (unlikely to result in a rate cut), a new Fed chair announcement, and the start of earnings season with major companies like ASML, Netflix, Tesla, and banks reporting. The speaker also notes the impact of a weak US dollar and a potential Supreme Court tariff decision. The video will then delve into specific stock recommendations for the month.
Sports Radar, a European company with a $6.7 billion market cap, focuses on three areas: providing real-time data and mathematical models for betting companies, delivering stats and video feeds for media companies, and monitoring betting patterns for sports leagues to prevent match-fixing. The company sees prediction markets as complementary opportunities, expecting revenue growth of 22.5% in fiscal 2026 and improving operating margins. Recent acquisition of IMG Arena properties is expected to accelerate revenue.
Netflix, with a $428 billion market cap, is highlighted for its attractive valuation despite a recent drawdown. The company shows improving margins across the board, including free cash flow, operating, gross, and net profit margins. Revenue is projected to grow by 15.5% in fiscal 2025 and free cash flow is expected to increase even faster, by almost 30% in fiscal 2025 and 35% in fiscal 2026. The speaker emphasizes Netflix's strong market position and the growth of its advertising business.
Credo Technology, a company with a $26 billion valuation, is gaining attention for its role in AI infrastructure. Credo produces high-speed active electrical cables (AEC) that enable thousands of AI chips, like Nvidia GPUs, to communicate efficiently. These AECs are presented as a thousand times more reliable and 50% more power-efficient than optical copper. The company expects massive revenue growth, with 172% in fiscal 2026 and 40% in fiscal 2027, driven by customer diversification, zero-flap optics, active lead cable, and the Omnicon gearbox.
Core Weave, a public company with a $35 billion market cap, experienced a significant stock crash but holds a substantial backlog of $55 billion. While 60% of this backlog will be realized in 2-4 years, 40% is expected within the next two years. Revenue is projected to reach $5.1 billion in fiscal 2025 (167% increase) and more than double to $12 billion in fiscal 2026, with further rapid growth to $19.2 billion in fiscal 2027. Operating profit and margin are also expected to improve significantly.
Uber, despite recent dips, is still considered a strong buy candidate. The stock's fluctuations are attributed to fears surrounding autonomous vehicles, but the speaker believes Uber will integrate AVs into its platform through various partnerships. Uber's profitability has significantly improved across all metrics, with revenue accelerating and free cash flow reaching $2.2 billion last quarter. Insurance costs, a headwind in 2025, are expected to become a tailwind in 2026. The company is also expanding beyond ride-hailing to include food and package delivery, as demonstrated by its partnership with Shopify.