The July Four
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, we’re talking about:
The July Four
Happy Independence Day! Welcome to The July Four. I hope you just finished chowing down on some hot dogs and watching some fireworks, as the Founding Fathers intended. These are the four best stocks you can buy right now, in July.
Now, there are a lot of different definitions of “best,” so…
You figure it out.
Here are the four best stocks, with four fun picks and four fun facts for July 4th.
GodBlessAmerica.
META – 583
Fun fact: Half the planet uses Meta products daily.
Ever wonder how many people are using Facebook, Instagram, WhatsApp, etc.? The answer is almost 50% of the globe… daily. Not bad for an advertising company.
The time to get on board the META train is now, while they are at a dirt-cheap 18 times forward earnings.
Bonus fun fact: It turns out Meta will actually make money on its big AI spend.
The big critique of the house that Zuck built (other than addicting the youth, compromising elections, suppressing things they don’t like, etc.) is: how are they going to get a return on this big AI spend?
If this Indian MBA student doesn’t see a viable financial return on the large CapEx plans, then what the hell does Zuck know?!
Oh, yeah.
They are just going to take the incredibly lucrative path that MSFT, GOOG, AMZN, and SPCX are going down and sell their cloud compute.
(Eduardo Saverin shakes fist angrily)
NVDA – 195
Fun fact: Nvidia is still growing revenue at 85%.
The most expensive company in the world is supposed to be a huge, evil mega-corporation conglomerate with a stodgy board of suits arguing over which divisions to cut to keep the meager quarterly growth numbers up.
Not a chip maker that is still growing revenue faster than most startups.
The AI boom keeps booming, and Jensen keeps laughing all the way to the leather jacket store.
VICI – 27
Fun fact: 79% of the rent roll comes from three casinos on the Vegas Strip.
Would you rather own casino properties than gamble at them? If you think Caesars, MGM, and The Venetian will be able to pay their rent, then you can be collecting 6.5%+ cash dividends from VICI for decades to come.
There are much worse things to bring back from Vegas than some real estate…
NFLX – 78
Fun fact: Netflix is at its highest free cash flow yield ever.
The FCF yield is simply the free cash they are generating divided by the stock price. The higher the yield, the more attractive the current price.
I guess it’s been a while since K-Pop Demon Hunters was everyone’s Halloween costume, so Wall Street must have forgotten that NFLX has 300+ million subscribers and are expected to grow earnings at 20% per year.
Happy Fourth!
Final Thought
“Our favorite holding period is forever." — Warren Buffett
