Stealth Wealth Investing

The host has sold most of his Tesla stock due to several significant concerns. He notes Tesla's earnings performance has been abysmal and in decline for the past two years, contrasting sharply with the overall market where many other companies have seen record growth. He argues that Tesla, despite being considered a tech company, has lagged significantly in performance compared to other 'Magnificent Seven' tech giants, while still trading at an irrationally high valuation. A further red flag is Tesla's consistent lack of formal guidance for future performance, which he interprets as either management trying to prevent a sell-off due to poor expectations or simply having no clear vision for the company's future amidst ongoing transitions. While he retains a speculative portion of his shares due to a low average cost and the potential of unproven ventures like robotaxis, he no longer views Tesla as a core holding.

The host expresses a highly bullish sentiment towards Palantir, strongly refuting the analyst's characterization of it as an expensive consulting business. He argues that Palantir's core value lies in its unique and powerful software, capable of advanced data analysis and integration, which he believes differentiates it significantly. Citing Palantir's consistent 'banger quarter' earnings, he asserts that the company deserves a higher valuation multiple and that Wall Street currently misunderstands its true potential, thus creating future investment opportunities.

The host holds a strong bullish view on Alphabet, endorsing the analyst's perspective that it is destined to be a major winner in the AI space. He highlights the company's substantial cash reserves and its track record of successfully monetizing previous technological advancements, emphasizing that there will be multiple winners in AI, not just one. While acknowledging that the stock has reached a fair valuation, he suggests that any significant dips would present compelling buying opportunities.

The host expresses a highly bullish long-term outlook on Palantir, highlighting its "unbelievable growth" in both commercial and government sectors, supported by phenomenal margins and robust fundamental performance. Despite acknowledging that the stock's valuation is currently "rich" and has experienced "multiple compression," he views any pullbacks in price as prime opportunities to add more shares. He dismisses short-term market concerns as "trader games," reiterating his strong conviction in Palantir's underlying business fundamentals, and states he would have "zero concern" and would buy more shares even if the price dropped significantly.

The host has been consistently dollar-cost averaging (DCA) into Amazon for over a year, viewing it as a "great business, great company" that Wall Street often "disrespects" with "stupid discounts." He compares it to Google's past situation where the market undervalued it despite strong fundamentals, and he intends to continue buying on these dips.

The host notes Meta's "unbelievable earnings" and "great performance," despite Wall Street's tendency to "beat it down." He describes it as a "massive cash-flowing business" with significant monetization "levers" and dismisses concerns about AI spending, believing the company can easily offset costs. He anticipates buying the stock soon as it approaches his price target, expressing "zero concerns" and hinting at unannounced AI developments.

The host is highly bullish on SoFi, highlighting its "great earnings, great guidance, great everything" despite continued market negativity, which he considers a "dream scenario." He explains that as an "early-stage growth company" still "trader-controlled," it will experience large, often "stupid" fluctuations. His strategy is to "jump in and take advantage" of these "underpriced shares" based on strong fundamentals, avoiding buying when sentiment is euphoric.

The host acknowledges Palantir's strong fundamental earnings performance, describing it as an "unbelievable earnings performance" and "incredible run." However, he indicates that despite positive fundamental performance, the valuation is "still not there yet" for him to add it to his buy list, although it's "getting much closer." He's currently waiting for a more opportune entry point based on his valuation metrics.

The host acknowledges PayPal's recent "beat down" and confirms he has removed it from his watchlist, as he currently owns "all that I want." He attributes its past struggles to a turnaround phase where growth rates weren't exceptional and notes a recent CEO change, but states that the latest earnings call lacked sufficient "color" or clear vision from the new leadership. He prefers to wait for more information before making new decisions, reflecting on the occasional "losses" that are part of investing.

SoFi (SOFI) delivered an exceptional earnings report and provided strong guidance through 2028, leading to a more attractive, undervalued position. The speaker highlights that despite the positive fundamentals, the stock price decline is largely due to short-term trader activity and conservative, often incorrect, Wall Street analyst forecasts that fail to properly account for the company's growth and financial services model. He views this price action as a 'dream scenario' for long-term investors, offering an opportunity to acquire shares in a well-managed company with a solid growth trajectory at a favorable valuation.

PayPal is currently undervalued, and the company's substantial share buyback program is a key bullish factor that will boost future EPS. Unlike companies heavily reliant on physical goods, PayPal is not directly impacted by trade wars, and new initiatives to help vendors with efficiency could be a significant tailwind. Management's strategic shift to focus on higher-profit, high-margin customer segments, rather than just overall customer growth, is a positive development. The host believes that increased guidance, particularly in EPS, would confirm the success of this turnaround plan and be very beneficial for shareholders. He is currently holding his existing PayPal shares but is not actively buying more, as he sees other investment opportunities with potentially higher returns, acknowledging that PayPal's turnaround is a long-term process.

Palantir (PLTR) is currently seen as overvalued by traditional metrics, but the host maintains a bullish outlook, emphasizing its leadership in the AI sector and a sticky business model that drives consistent, strong earnings growth. Despite debates around commercial versus government growth, the focus is on overall revenue, contract, and EPS growth. The host predicts Palantir will beat expectations and raise future guidance, which could further propel the stock's valuation. For new investors, a dollar-cost averaging strategy is recommended to build a position over several years, prioritizing share accumulation over short-term market timing.