Transcription
AMD stock is down over 31% in the past three months. The beast, the unstoppable beast that is Nvidia stock, is actually negative versus where it was back in June. Yes, it is down 2% from where it was back in June. Since the week before Christmas, Tesla stock is now down around 19%. Peloton stock since Christmas Eve is down over 20%, which puts it definitely into a major correction area.
Now, at this point in time, you even have weird stocks like Boston Beer Company just kind of falling out of bed. In the past month, this stock's down over 19%. Bath and Body Works, which everybody knows for the soaps and the candles, right? That stock's fallen about 8% in the past month.
If we pull up a one-month chart of the Q's, think of that as the NASDAQ, the S&P 500, the Dow Jones Industrial Average, and the Russell, we're going to see something pretty interesting. The Russell's down over 8% in the past one month. Now, you usually call a correction in an index anything that's around 10%, so the Russell is very, very close to actual correction territory.
Now, at this point in time, the Dow Jones Industrial Average is down over 5%, the S&P 500 is down 3.5%, and the NASDAQ's down around 3% in the past month. So it's clear as day there is major weakness going on in the market. Where definitely, I would call it a little bit more than a pause in the past month. I would actually call this some actual real weakness starting in the market.
Right? Nothing out of control yet, but definitely more than a pause. A pause would be kind of like all these indexes for the past month kind of being around break-even or maybe down 1-2%. The fact that some of these indexes are down 8% and 5%, that's a little more than just a pause in the market.
So, four core subjects we're going to speak about in this one here today. The first one is why is the market getting so weak? Okay, I think this is an important subject I got to cover this right off the top. The second subject we'll speak about is when is this market going to turn back positive, where the indexes start going back up for real, stocks start turning around, things like that.
Okay, so we're going to speak about that. The third thing we'll get into is some bad news for a stock that I personally own, and we're going to talk about how bad this news is. Could this cause this stock to crash? Not what my plans with it are, am I going to buy more of the stock, things like that. Okay, we'll discuss that in this video.
The fourth thing we're going to get into is the best stocks to buy over this next few months period. We're in this kind of volatile time now, right? We know Trump’s getting in office here in what, a week and a half, two weeks from now? So we're going to have a lot of things happening, earning season coming. What's the best stocks to capitalize on this next few months? So we'll speak about that.
Okay, appreciate you all joining me as always. All I need from you guys, one thing, one thing only. I got the sign in my garage, it says it right there: smash the like button. I hope you guys should do that for me here today. Doing a video on a Friday late afternoon for you guys because I know we got drama in the market, and I know you guys were looking for a video.
So I appreciate it, that's all I ask in return. If you want to subscribe to the channel, you can certainly subscribe. Additionally, if this is your year to start taking investing seriously, click the pinned comment down there, fill out a form, and we'll see if we can get you access to my private stock group.
So you can get access to my entire library of premium courses, my private Discord chat, access to the research platform, which is THXstocks.com, which is a must to take your investing game up to a much higher level. Don't let this year just be another year that a lot of people, you know, this is what happens: people, the market goes down, stocks start going down, people say, "Oh, you know, I'm not going to buy now, I'm going to wait."
Right? And then they look back a year or two later and like, "Gosh, why didn't I take investing seriously at that time?" Right? That's the same thing that happened in 2022. There are a lot of investors, and maybe even some people watching this video right now, there are some of you guys that look back at those prices of stocks in 2022 and you're like, "Why was I not buying stocks in 2022 when all the best tech stocks were crashing?"
Right? Don't let another year happen where you let it go by, you don't buy, and then you don't take advantage. You don't take investing seriously, and it just flies by, and then you look back and you're like, "Ah, stocks were such great deals and I didn't buy them." Don't let this year just be another one of those years. Take advantage.
Okay, folks, already, already. First one up here: why is this market getting so weak? Alright, here's what's going on. It's very important everybody understands. The jobs report comes out today, strong jobs report. Right now, first off, you would usually think like strong jobs report, great news, right? Like what do you want? Unemployment to be high? We want everybody to lose their jobs? Would that cause the stock market to go up?
But we're in a weird time for the stock market where it looks at a strong jobs report as actually a negative. Yes, I know it's weird times. Okay, good news for the economy, but not for the markets, at least for now, says Scott Ren, who's Wells Fargo's Investment Institute Senior Global Market Strategist. Holy smokers, let's give him even a longer title. This ain't no dang joke.
However, this unexpected gain relative to consensus projection does not change our view that the labor market will likely deteriorate in the further coming quarters. So here's what's going on: traders now give 97% odds, almost a guarantee, that the Federal Reserve is not going to lower interest rates in January. The market wants lower interest rates. The market wants the Fed to continue to lower rates.
Now, the market believes that the central bank will hold rates where they are in the March meeting as well, based upon Fed funds future trading odds. A March cut fell to around 25.5% following the jobs data, down from 41% odds a day earlier.
So why does this stock market want rates to go down? The stock market wants rates to go down because the way the market thinks is rates go down, stocks go up. Okay, it's not always the way it works, by the way, but that's the way things are right now. Also, a strong jobs report makes people worry about inflation coming back. If inflation comes back, the Fed can't lower rates really anymore, right?
And at the end of the day, the Fed could even consider raising rates, say, 6 months, 12 months, 18 months from now, and that freaks the market out in a substantial way. Then you get into worries about the 1970s, right? Worries about stagflation, an ugly term that everybody freaks out about, right? And all those sorts of things.
So that's what happens when you get something like this. The market actually would rather have a weak jobs report right now, which is once again weird, but that's the times we're in. Now, this reminds me very similar to shortly after I got in the stock market. Okay, this is an old picture from many, many years ago, 15, 16 years ago or so, right? When I was a brand new newbie in the market, I was working a shift here at Walgreens.
I don't think I ever had my name tag straight, man, but I was just getting started in the market back then, right? Had a few hundred dollars to my name. As I started to build over the next few years, it was an interesting phenomenon that was going on in the market. The first couple of years I was investing, and it's very similar to right now.
What this phenomenon was, was essentially, you know, this is very early on in my investment journey, a few years in, right? So I'd watch a lot of CNBC, didn't even know a lot of the terminology they were talking about, but I would just kind of pick up on things, listen, and just kind of learn, learn, learn. Because this is way before like YouTube was a big thing and whatnot, right?
In terms of like investing communities and stuff like that, so there was an interesting phenomenon going on where essentially people kept bringing up this term called double dip recession. So we started to come out of the great financial crisis, started to come out of that recession, markets were rebounding, but over the next couple of years, 2010, 2011, people were really worried about, "We're going to have a double dip recession. The employment market's going to tank again, unemployment's going to go up majorly," right?
And there was all this fear about that, and it would cause the market to go down short term. So if you look at, if you pull up a stock market index of 2009, 2010, 2011 overall, you'll see a trend where the market went higher, but in that trend of the market going higher, you had some significant drops where all of a sudden, out of nowhere, in a matter of a few weeks, a month, two months, the market would drop 5, 10, 15%.
And it would be on the back of this fear about, because basically like one jobs report would come out or two jobs reports would come out and it would show a little weakness. And so people are like, "Oh boy, we're going to tank again, the economy is doomed again," right? And so people would just freak out over this. The overall trend was things were getting better, but all it would take is one or two bad reports and people would be like, "Oh boy, the unemployment market's going to tank again, the economy is bad, earnings going to tank," all that sorts of stuff.
So now we got the same exact thing going on, but it's just different in terms of now the worry is, "Oh, the economy is too strong, too many jobs, inflation comes back, and the Fed's going to have to raise rates. They're not going to be able to drop rates." And so you're going to have this, let's call it anxious feeling in the market because we're still traumatized from 2022, right?
The S&P 500 at peak to trough in 2022 was down what, 25% at one point? The NASDAQ was down like 37-38% peak to trough during that. Causes trauma to the market, right? That causes trauma to investors. So there's still this built-up fear around inflation coming back, what's the Fed going to do, all those sorts of things.
And we're going to have to work through that. We're going to have to work through that trauma for the next one to two years until we get so far removed from 2022 that everybody just forgets about it, right? And then we move on, move on, move on from there. But for the short term, we got trauma that we got to deal with. We got to deal with that, right?
And so that's what's going on in the market. And you look at the 10-year treasury, right? The 10-year treasury just keeps going up and up and up. This is from the time period that the Fed made that first cut, right, in the Fed funds rate. And look at it, ever since then, the 10-year has just continued to head higher and higher and higher.
At the end of the day, there's a lot of folks that believe that if the 10-year treasury just keeps going up, stocks aren't going to go up, right? Meanwhile, you have the TLT, which a lot of people were positioned into this TLT over the summertime and into early fall thinking that TLT was going to be the play, and it just keeps going down.
You had people playing TMF, right, which is like a 3X leverage on the TLT, thinking, "Oh man, you know, TLT is going to go skyrocketing here," and we've just seen literally the complete opposite of this. TLT just continues to go down, and people are just getting wrecked left and right, especially a lot of the folks that are playing, you know, these 3X leverage plays on this.
Listen, when you want to play those 3X leverage plays on something, you better be good with your timing because otherwise the pain is going to be on the downside, right? And I'm sure at some point in time TLT will be the play, but you know, your guess is as good as mine in terms of when that starts to pop again, right?
So that's what we have going on here. Now, if you look today, you look at the indexes, you know, getting hammered: Russell, NASDAQ, all those sorts of things, Dow, S&P 500. But the public count is actually holding up pretty well today, down 77% here, outperforming the market quite significantly.
But why is that? The reason that's going on essentially is one position, it's called Meta. It's the biggest position in the portfolio, a $3 million plus portfolio, but over a million dollars of that's in Meta, right? Meta is having a good day. And so, you know, sometimes if you own a few special stocks, they can help you outperform the market on down days, and they can help you severely outperform the market on those up days.
It's all it takes, man. A few really great companies can transform your portfolio in such a major way. Right now, let's speak about when this market's going to turn, right? And we can start talking about the indexes, start going back up, stocks start going up, the big dog stocks start going up, and all those sorts of things, right?
When's this market going to turn? Well, I don't know if you guys follow me on the reaction channel, but I did, I thought, an important video last night, right? It was like a 46-minute video reacting to a few different videos there, but I spoke about when I think the market's going to turn. By the way, thank you so much to everybody that supports over that channel. 70,000 subscribers now on the reaction channel, that's insane, man.
So I appreciate you all for being here. I just got to say this: I just hit nine years on YouTube, right? Nine years on YouTube. And it looks like that reaction channel will be on pace to hit silver play button status, which means 100,000 plus subscribers at some point this year, which is insane to think because that will be my fifth silver play button on YouTube.
Like, this has never been done before. Like, this has never been done before in the history of stock market YouTube. Like, people are fortunate if they can ever even get one silver play button. Like, it's an extremely fortunate feeling to even get one, and to be working on my fifth, like, insane. I could not do that without you guys supporting year after year after year after year, right?
And I'm thrilled that I still have the work ethic to put out there. And like, the thing that always gets me is I always think, like, because sometimes I'm like, "Man, you know, I don't know if I want to do YouTube anymore because YouTube's a tough game." Like, you know, they talk about in the NFL, lifespan is not very long in terms of you last in the NFL. I think average running backs out of the NFL within 2.5 years of entry, right?
YouTube lifespan is very short, and the reason being it's taxing, man. You know, trying to worry about everything all the time: public image, you got people making videos about you, right, to get clicks and get views and all that stuff. Like, it's just a tough place to be.
And to be able to do it year after year after year definitely takes a lot. And so a lot of times I think, like, "How much longer am I even going to do this?" And the thing that always gets me through is like, I always think, "Like, I'm going to get them through the next crash, and then after that crash, I'll take off after that."
And it's always like I always keep pushing it off, right? And so I used to think about that back in the day, and then we had the 2018 drama where the market just tanked at the end of 2018. When we came out of that, and then I was like, "I'll get them through one more crash." And then we had the Rona crash, right? The fastest stock market drop in history, like that was crazy.
And we came out of that, right? And then I was like, "Oh, let me get them through one more crash." And then we had the 2022 crash, and now I'm like, "Let me get them through one more crash." And so that's the thing I always push out. But man, I appreciate you guys. I just need to say that and get that off my chest.
I appreciate you guys huge, and this has never been done before in the history of YouTube. And I don't know if it will ever be done in terms of this level of success in the stock market space. It's crazy, man. But thank you, thank you.
But anyways, in regards to that video last night, I talked about the market could change very shortly here. And the reason being is when you look at all the biggest companies that matter the most to the stock market, the biggest weights by far, right, are what? Apple, Microsoft, Google, Amazon, Meta, Tesla, these sorts of companies.
All of those companies are going to be reporting earnings within the next four weeks specifically. So here's the deal: if those companies come out, beat their revenues, beat their earnings per share, have good guidance, have good yearly guidance for 2025, it's going to be hard to get that stock market down much more after like this week essentially.
This upcoming week I'm talking about, and I wouldn't be surprised if we start trending higher at that point in time. Now, on the flip side, let's say if Microsoft, Google, Amazon, Meta, Apple, Tesla, let's say these companies' guidance is very shaky, cloudy, murky about 2025. That could lead to more of a negative sentiment, and that could actually pull us down basically in February and March as well.
Okay, so, but at the end of the day, like if these companies come out and good things and good things and good things, you're not going to be able to get this stock market down pretty much after next week essentially.
Okay, so things could flip very rapidly here. Now, the thing you got to understand about the stock market is the stock market literally has ADHD. I'm not kidding you, okay? As they say, ADHD in children, easily distracted. Does that sound like the stock market? Yes. Daydreaming, does that sound like the stock market? Yes.
The stock market loves to daydream. Forgetfulness? Oh yeah, can't sit still. Excessive talking? Huh, yeah, that sounds like the stock market. Careless mistakes, risk-taking behavior, and impatience? Is that not the stock market? Yes.
So you got to understand, everybody's worried right now about a resurgence of inflation. The Fed can't lower rates if all of a sudden, 2-3 weeks from now, when all these companies start reporting, all the numbers are great, and the guidance is great, and the management commentary is great, and the conference calls are great, right?
Listen to those on THXstocks.com. Guess what's going to happen? The stock market's going to completely forget about, "Oh wait, oh that's right, we were worried about inflation. Oh, we were worried about that strong jobs report." It moves on so quickly, so quickly it's not even funny, right?
Then after that, another month or two can go by, and then all of a sudden it starts to look around, "What do I have to worry about now?" Oh, oh, you know, then something happens in the jobs market that it likes or doesn't like, and then all of a sudden it's focused over there.
But the market gets extremely distracted. Like, if somebody's been in this market 16 plus years now, it's always something. It's always something it's worried about. "Oh, it's this thing. Oh, it's over here. Oh, it's over here. Oh, it's over here."
And it just changes several times. Usually throughout a one year, the market will get distracted. All of a sudden it's paying attention here, now it's over here, now it's over here, now it's over here, now it's over here. It's just what happens, okay?
And so at the end of the day, you got to understand when you're dealing with the stock market, you're dealing with an entity that has massive ADHD. Massive ADHD. And whatever they're talking about today won't even matter in a few months from now or a few weeks from now, and certainly not in a few years from now, right?
You know, I said this recently: I don't give an F what my stocks are doing. I was actually talking to the private stock group recently over the next three weeks, even the next three months, right? I care about where my stocks are three years from now.
No, somebody said a comment, you know, every once in a while I get this comment. They're like, "Oh, easy for you to say, you're part of the 1%, you're so rich. You know, people shouldn't listen to that. You should care about where your stocks are in the next few weeks, next few months."
No, it's the same thing when I was a broke joke and I had $300 to my name, $500 to my name, $1,000 to my name, $5,000 to my name. It was the same thing. At the end of the day, you shouldn't give an F where your stocks are priced three weeks from now or three months from now. What is it going to do for you as a long-term investor? What does it matter?
Like, if Meta is $500, $600, or $700 a month from now, does it even matter? No, like cool, it just says a bigger number or a lower number in my portfolio. I'm not planning on selling it right now, right? Like as a long-term investor, that's the way you should think.
If you know AMD stock, which I'm buying heavily right now, if all of a sudden it goes from $10 something to $200 in the next few months, I don't care. If it goes to $80 in the next few months, I don't care. I would rather have it go to $80 than go to $200 because I'm planning on holding that stock for the next several years, and I'd rather buy shares for as cheap as possible.
And it's sad that some people don't have a brain that can comprehend that. I think the majority of you guys watching this, thank goodness your intelligence level is up to a high enough level that you can fully comprehend that. I would say 95% plus of the people watching this right now, you get it.
Like, yes, I want my stocks for cheaper in the short term. I'm not retiring tomorrow or the next day or the next day. I don't care. Like, all I want to do is make a lot of money over the next several years, and I'd rather buy stocks. Like, if you told me, could I have the Dow at 22,000 tomorrow instead of 42,000? Of course, I would take it at 22,000.
There'd be steel deals. Like, you could put money in almost anything and make money over the next few years, right? That's the way you got to think. And so, you know, it's sad that there's a few percentage, a very small percentage that don't get it. They don't get it.
But I'm very thankful that I think the majority of people, the far majority of people watching this video right now, get it. Let me know in the comment section if you understand this concept. Just say long-term investor, okay? Something like that. I hope everybody, you know, like I said, I think 95% of people get that game.
But it's unfortunate that a few percent, like, they just don't get it, man. And unfortunately, those people will be broke for life. They will never have money. Like, truly, if you cannot wrap your head around long-term thinking, long-term investing, what separates you from just being a monkey?
Like, seriously, I'm not kidding you. Like, one of the most amazing things about humans is you can essentially delay gratitude, right? Or delay like rewards, let's call it that, right? You can delay reward opportunity. And in animals, they're not so good at that, right?
But as a human, you can delay a reward, right? And so that's beautiful. Like, that's special. It's a gift. It's truly a gift, man. And if you got it, you got it. And if you don't got it, sadly, you're never going to get it. It's just the way it works, unfortunately, right?
Alright, next subject up here. Let's talk about some bad news for a stock I own. How bad is this news? What I'm planning on doing with this stock? And then let's talk about some of the best stocks to buy for the next few months.
So recently, Fubo has gone absolute beast mode, right? Absolute beast mode. These are shares I have in the public account. We went from being pretty negative on this position to up 125% in it. It happened like that, man. Things can change in the market very, very, very quickly, obviously with the Disney partnership and everything that's going on there, right?
And I spoke about that. If you haven't been brushed up on the whole Fubo situation, watch this video from, you know, four days ago or so. I think that one will get you up to speed on everything that's going on with Fubo, the opportunity there, and those sorts of things.
Right now, what's going on here? So, Direct TV says venue still anti-competitive following Disney deal. This provider joined Echostar in criticizing the deal. Disney plans to merge Fubo with Hulu Plus live TV service. Pay TV provider Direct TV wrote a letter to a federal judge Thursday that a recent settlement between Walt Disney and Fubo doesn't resolve antitrust issues around Venue, a planned sports streaming service.
Direct TV said Venue, a joint venture between Disney, Fox, and Warner Brothers, would offer content that Direct TV and other distributors aren't allowed to, and that the company is concerned about the impact Venue would have on competition for sports programming. Satellite TV provider Echostar wrote a similar letter on Thursday, right?
So, okay, first thing is here, right? The first thing I would say in regards to this, right, is I don't think Direct TV is attacking this at the best time possible. Okay, listen, we got a new administration coming in office here in the next, what, less than two weeks from now? There's going to be a lot of focus on other places, and there's bigger fish to fry out there than let's call this whole situation that's going on, right?
The time period to really get the attention of this, because they even got a lot of Fubo, got a lot of politicians, like big-name politicians involved in this. They got them involved, you know, kind of over the summertime and whatnot, right? And so that at that particular time, there was a great time period.
Now you got a new administration coming in office. You know, Trump's going to be making all types of moves, doing this, doing that. Everybody's attention is going to be there, right? And so trying to get attention to this little subject over here is going to be tough at this point in time.
And especially given that the main company that brought up these problems basically says this is all good now, that makes it even double tough. So it doesn't mean it's impossible for Direct TV to somehow block this or changes to be made, but there could be changes that could be made where essentially Disney could say, "You know what? We're going to allow you access to this and for other sports packages and things like that."
So that can certainly be something that happens as well, okay? Or Disney can make deals in the short term with Direct TV, Echostar, these sorts of companies and say, "You know what? We're going to do this, we're going to do that," and then Direct TV kind of goes away as well, right? Because their complaint kind of goes away.
So that's something to keep in mind there. Now, additionally, let's say, and I still think there's a higher probability the deal goes through and it's all good versus it doesn't go through. But let's say hypothetically it doesn't go through. Let's say Direct TV kicks up a big stink and these guys kick up a big stink, and somehow the deal doesn't go through.
A few things to remember: one, $130 million is to be paid out to Fubo according to their statement around this if for any reason the deal does not go through. $130 million, okay? Fubo would still be supposed to receive if the deal somehow got blocked.
Secondly, at that point in time, Disney, if they wanted to, could just buy out outright Fubo, the whole company, right? Maybe they buy it at $5 a share or $7 a share or $10 a share or $15 a share, whatever the amount is, right? That could always be something that's going to be done.
And with Trump getting in office, there's supposed to be a lot more friendly to deal-making than certainly the previous administration was. And we know Linda KH is out. She's leaving in, I think she's leaving this month if I recall, right?
So it's supposed to become a lot more deal-friendly. So there could always be a situation where, let's say, once again, there's a higher probability the deal still goes through and Fubo is going to have just a great next five, ten years if that's the situation.
But if the deal gets blocked, Disney might just look to buy him out because then they can say, "Well, why did we just pay him out $130 million in this deal? Why not just buy the whole company out?" Right? And then David Gandler could still run the show. I don't see why that couldn't go through too.
So there's a lot of optionality here in regards to this. Also, Fubo now built a much closer relationship, I think, with ESPN, with Disney, and some of these guys. So if they had to be standalone, I think in a better position. Plus, they get the $130 million if it doesn't go through, right?
Then certainly where they were prior to this, it's not even a question. So once again, this is why I keep talking about Fubo as like it's win-wins across the board. Like even if you somehow this gets blocked, like they're still going to put themselves in a win.
Like David Gandler played a hell of a game of chess, man. He played a hell of a game of chess in this situation. And I'm sure he contemplated all these different angles. So that's kind of my theory. Now, that's, I'm also not buying the stock actively right now. I'm just holding my shares because my thing is like, you know, let's say the deal gets blocked and the stock goes back down to $3, $4 or something like that, right?
That's always a potential. But then once again, Fubo would then get the massive payment. They also have a better relationship with ESPN. And then also that I think if the deal got blocked, I think at that point in time, there would be a lot of talk and chatter about Disney just buying out Fubo straight up.
And I think that would be hard to block given that the new administration is likely going to be much more easy on deal-making in this space, right? So yeah, you know, Direct TV can make these complaints and things like that to the judge, but I just don't know.
You know, if they're going to be able to do anything there, like I said, you know, all I'm saying is there's going to be a lot of focus in a lot of places, and there's going to be a lot of changes that happen over this next few months here.
Okay, so yeah, that's that. Next subject to speak about: what are the best stocks to be buying right now? So these are the sorts of companies that are best to buy right now. Okay, listen, you want companies that have growth in 2025 and beyond, a lot of expected growth, revenue and profit growth.
The more the growth, right? The more the growth is expected, the better off you are. You don't want to cut it close. You want companies that can, because the thing you understand about growth in revenues and profits over time, you can grow out of a lot of problems. You can.
If you've got growth, you can grow out of a lot of problems, right? A lot of problems. And you even look at Fubo with how much money they were losing, but at the end of the day, they had great subscriber growth, revenue growth, and they were able to kind of grow out of a lot of problems and get Disney's attention and those sorts of things.
If you have major growth, it's just easier. Your life becomes a lot easier if you got major growth, right? No different than if you're a basketball player. If you grow a lot, like your life is a little bit easier than if you're a short player in the NBA, right?
So that's the first thing. Second thing is strong balance sheet. You got to own these companies that have strong balance sheets. Listen, you know, everybody's been banking on rates going lower, and they're not. Like rates are still among the highest they've been in years, in 10-15 years.
This is why companies with strong balance sheets, what is a strong balance sheet? Big cash position, the lower the debt levels, the better off you are. Big cash levels. And the reason being is you got to be able to weather any storms, whether we get in a recession in the next few years, a stagflation cycle, whether rates just remain high.
They say it's a good economy, but rates remain high. Listen, if you got a strong balance sheet, those aren't really concerns for you. If treasuries, let's say, go spiking up over the next year, if you've got a massive cash load around, you're looking great. You're looking great. They're great, right?
That's no problem for you. That's no issue for you if you got a strong balance sheet. Third thing is proven business models. You want proven business models that have been around 10, 20, 30, 40 years, right? That you've been able to see them get through different cycles in the market, right?
High inflation, low inflation, recessions, great employment market, bad employment market, all those sorts of things. And the fourth thing is you want a low forward PE based on future growth. The important thing you got to understand about forward PE, right? This is where a lot of people get confused, is they assume like just a low forward PE is good.
No, no, no. A low forward PE based upon future growth rates, that is good. Okay, so let me give you some good examples here. Okay, looking at THXstocks.com here, right? Looking at AMD stock, AMD stock, tremendous opportunity right now. Why? Well, the company trades roughly in market multiple kind of range.
It's said the forward PE is around 25 for the stock, but here's the thing: the company's expected to have triple-digit earnings per share growth next year and revenue growth analysts are at somewhere around 26% for the company, right? So let's say they miss analyst expectations next year and they only grow revenue 20%, right? Or 15%.
That's still a really good number for a company that has a forward PE of 25. Now, if they come in with a 30% revenue growth, a forward PE of 25 doesn't even make close to sense. Like that's way, way, way too low. So whichever way you slice it, AMD stock is a steal deal right now, right?
You look at a stock like Meta, same exact thing. Company trades at a forward PE roughly in where the market's trading, right? Meanwhile, you've got double-digit expected earnings per share growth, double-digit revenue growth over the next several years, and you're going to be able to see that for years and years to go in the future.
So Meta should not be trading at roughly a market multiple when it has way better growth than an average stock in the market, right? So that's a way to think about forward PE versus growth rates, right? Because you could find a stock that has a forward PE of 12 and think like, "Oh, this is a great stock because it has a forward PE of 12."
Does it have future growth? If it doesn't have future growth, then it doesn't make it a good deal. It does not make it a good deal. You got to come with good growth rates. If you can come with good growth rates and you got a forward PE in the 20s, steal deal, you're stealing money at that point in time.
And that's why I view like AMD stock right now. I'm like, "This is a steal deal. Like, are you kidding me?" I think we'll look back in a few years from now and be like, "Can we remember getting AMD at, you know, a little over $100 in 2025?" Like, hm, like that's the way to do that.
By the way, regarding Meta, I don't know if you guys have seen this, and I haven't watched the whole Joe Rogan interview yet. I've only seen clips here and there, but this was interesting. He was saying essentially they haven't really innovated anything great in a while, talking about Apple, right?
Steve Jobs invented the iPhone, and now they're just kind of sitting on it 20 years later. Apple basically squeezing people with a 30% tax on developers, making it tough for other devices to connect. If Apple removed all their random rules, we'd make twice as much profit, and that's just us, right?
And Zuckerberg's got the same exact view. I think he might watch the channel. He's got the same exact view as I have. I've been an Apple customer for I don't know how many years now, probably getting close to 15 years or so, roughly.
Well, probably, yeah, actually right around 15 years I've been an Apple customer, right? And as an Apple customer, the thing is, you know, I did this video over a year ago. It only got 35,000 views, but I'm like, that freaking video was so good.
And the reason it's so good is because I understand so much about Apple. I've been a shareholder of that company many times over the past 15 years, on and off, semiconductor companies that do business with Apple. I'm a huge Steve Jobs fan. I understand the whole backstory of Apple on a high level and all the sorts of things and the strategies that they used to implement under the Steve Jobs and Johnny I days versus the Tim Cook days.
And I just, that's a freaking masterpiece of a video. It's a shame it like took off or anything. But anyways, the moral of the story is here in regards to Apple, you know, the Steve Jobs, Johnny I days, it was always about building the best device.
And people will buy from Apple because they build the coolest, most innovative devices at that time. The Tim Cook era is very different. This is an era marked with, "We're going to, you know, basically be attacks on the developers, and we're going to do whatever it takes to just keep people locked in the ecosystem."
And that makes for a good business model in the short term, but it will be its fatal flaw long term because eventually people will get out of the ecosystem. So for instance, for me, like if my iPhone breaks, I'm going to buy another iPhone. Is it because it's the best product? Absolutely not.
I'd almost guarantee you there's better products in the market from Android than an iPhone. I only do it because if I go away from the Apple device, it's just like it's going to make my life harder in terms of like all the cloud, the pictures, and the videos I have of all my kids and like trying to transfer that over to something else, right?
In terms of like most of the people I know have iPhones, and messaging is a lot more complicated from Android to iPhone. Anybody that's experienced that, you know that, right? And Apple does all these little things like getting my text message to my tablet, my computer.
Like Apple does all these little things that they kind of lock themselves in the ecosystem. So people buy Apple products more and more, not because of the best devices, simply because they're locked in the ecosystem. And that's exactly like people like myself, people like my wife, like we're all locked in this ecosystem that we can't really get out of right now.
Someday we'll be able to break out of it, but we can't really break out of it right now because it's too inconvenient because a lot of the things that they do with their business model, right? And obviously, politicians turn a blind eye to this because obviously Apple, you know, they fill up a lot of pockets. That's all I'll say about that.
Okay, no, and also, you know, I don't even want to go down those rabbit holes. Okay, so next up here, as far as some other stocks to buy in this opportunity, there's, I mean, I've spoken about a lot of them here recently. I did this video a little over a day ago, five stocks to buy now in the next 90 days.
I did this video, seven stocks to buy now January 2025. I spent $27,000 on these six stocks. Nike stock is easy money. Buy AMD stock and don't stop buying. Oh, I think that one's going to age so well long term.
Like I, as I spoke about in that video, I said, you know, you want to buy every AMD share you can get your hands on in the next 3 to 6 months, and I think that's going to age so well. I really do because I think people that are buying AMD stock over the next few months are going to look back in a few years from now and be very, very happy campers.
I could be wrong, that's fine. I don't think I am. I put my money where my mouth is, man. I'm buying AMD stock heavily. I just bought AMD stock literally today, right, in several portfolios. And so that one continues to just be a great opportunity.
And, you know, short term is what the short term is. Like people just need to be thankful. Like if you can get AMD shares at $100 something dollars right now, just be thankful. That's all I say about it. Be thankful, be thankful.
You know, shoot, send AMD down to $55 again like it was in 2022. Send it down to $75, $95. I don't care. Like whatever it is, I think I'll look back three years from now and be like, "Thank goodness I was buying AMD stock." But we'll see, we'll see.
I think I'll be right, right a lot more than I'm wrong, right? Alright guys, appreciate you joining me as always. Thanks so much for being here. Pin comment down there if you're looking to take your investing game up to a much higher level in 2025.
Don't let this be another year that passes you by. You don't take this stuff seriously, and you look back and you're like, "Man, I wish I would have been investing in 2025. I wish I had been buying stocks. I wish I had been taking advantage of that stock, this stock, that stock, this stock."
Right? And I teach you everything that you can make your own decisions, and you go through the course curriculum and learn on a high level, right? I can teach you all this stuff. It's there for you. Like, you know, why would you not want to take advantage of it? I mean, it's crazy.
Like, you know, it's right there for you already. Pin comment down there. Much love and have a great day.