Summary
Highlights
The video introduces the idea of waiting until after earnings reports to buy certain companies, especially those that have seen significant price run-ups. The core idea is that even good earnings might not lead to further stock appreciation if the good news is already priced in. The presenter emphasizes that these are still quality companies but their current valuations might be too high.
Crowdstrike is highlighted as a top cybersecurity company but also one of the most expensive. Despite being at all-time highs with a $132 billion market cap and a forward P/E of 124x, the company has ambitious growth targets of $20 billion in ARR by fiscal 2036. The presenter advises waiting for earnings due to its already high valuation.
Rocket Lab is discussed as a company with significant future growth priced in, largely due to the anticipated Neutron rocket launch. The company is currently unprofitable, and any delays in the Neutron program could lead to a stock pullback, presenting a better buying opportunity. The business is shifting from pure launch services to space systems.
Palantir is recognized for its incredible margins and growth acceleration while expanding margins. However, with a $438 billion market cap on $4 billion in revenue, the presenter believes a lot of future growth is already priced in, making it not worth chasing at current levels. They expect continued revenue growth and margin expansion.
ARM is presented as an incredible company with high gross profit margins (in the high 90s). Despite the AI boom and its importance in the ecosystem, the company's revenue growth (around 20% for the next two fiscal years) and remaining performance obligations (RPO) haven't seen the huge increase expected from the AI race. This suggests its current $180 billion valuation might be high, and waiting for clearer signals is advisable.
The presenter is bullish on AMD long-term but advises against chasing the stock before earnings due to its recent run-up ($410 billion market cap). Recent deals with OpenAI and Oracle indicate strong future growth, likely leading to upward revisions in growth expectations. However, the stock is currently overbought, and a pullback before or after earnings could offer a better entry point.
The video concludes by reiterating the importance of waiting for earnings reports for these companies, suggesting that current valuations might be too high to justify buying immediately. The presenter also advises investors not to be afraid to raise cash by trimming overextended positions in their portfolio, emphasizing that "nobody got poor by taking profits."