Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - Leaked: Trump’s $100 BILLION Defense Stock - The Opportunity of a Lifetime!? + Stock Market News 27 May 2026

Transcript

Felix Prehn - Leaked: Trump’s $100 BILLION Defense Stock - The Opportunity of a Lifetime!? + Stock Market News 27 May 2026 · Felix Nikolas Prehn's Podcast

• 0:00
  SPEAKER_00: Six politicians, Republicans and Democrats, are quietly buying the same stock right now.
• 0:06
  SPEAKER_00: And people who can't agree on literally anything agree on a stock.
• 0:10
  SPEAKER_00: It's something that I don't want to ignore.
• 0:12
  SPEAKER_00: Of course, Winston is the one who found it.
• 0:15
  SPEAKER_00: It's a company that powers 85% of the Fortune 500.
• 0:20
  SPEAKER_00: Its CEO just put$3 million of its own money into it, and even the president of the United States, the trader-in-chief, holds over a million dollars of it.
• 0:31
  SPEAKER_00: And the stock, it's been cut almost in half.
• 0:36
  SPEAKER_00: Wall Street thinks AI is going to destroy it, but the insiders, the politicians, the CEO, and the president are buying it as quickly as they can.
• 0:47
  SPEAKER_00: So by the end of this video, you'll understand why this could be one of the most missed, one of the most misunderstood opportunities really in the market right now.
• 0:56
  SPEAKER_00: And I'll give you a simple framework to decide if it belongs in your portfolio.
• 1:00
  SPEAKER_00: Now I'm not gonna hold you hostage for 20 minutes to try and figure out what the stock is.
• 1:04
  SPEAKER_00: It is service now.
• 1:06
  SPEAKER_00: If you just want to run away and not understand any of it, good luck to you.
• 1:10
  SPEAKER_00: My name is Felix.
• 1:11
  SPEAKER_00: This is Winston here.
• 1:12
  SPEAKER_00: He used to be an investment banker.
• 1:14
  SPEAKER_00: I was an economist, and we're also the founders of the GOAT Academy, where my Wall Street mentors have taught well over 20,000 people the last six years.
• 1:23
  SPEAKER_00: And what we do here is we give regular investors like you and me in Winston here access to the knowledge that is usually only taught to the loveies on Wall Street.
• 1:33
  SPEAKER_00: So I'm gonna break down for you why the politicians with top secret clearance, a billionaire, and the president of the United States are all loading up on the stock.
• 1:44
  SPEAKER_00: I'm not saying you should buy it.
• 1:45
  SPEAKER_00: I am not a financial advisor.
• 1:47
  SPEAKER_00: I am only registered as an owner of this guy, nothing else.
• 1:51
  SPEAKER_00: So it comes your own conclusion.
• 1:54
  SPEAKER_00: But I'm also gonna give you a ton of data.
• 1:56
  SPEAKER_00: And every piece of data I give you, well, some of it is gonna go right as data normally does.
• 2:02
  SPEAKER_00: So I'm gonna do something better for you.
• 2:04
  SPEAKER_00: I'm gonna give you full access to the tool that I used to get the data from.
• 2:10
  SPEAKER_00: So free trial there for the week.
• 2:12
  SPEAKER_00: There's a 30-day money-back guarantee.
• 2:14
  SPEAKER_00: It's literally the one risk-free thing you can do today.
• 2:16
  SPEAKER_00: Test it, the zero risk, and tell me what you think of it.
• 2:20
  SPEAKER_00: It isn't called the Winston app, particularly the stock raider part in it that I've got on the screen here.
• 2:26
  SPEAKER_00: We're gonna walk you through a little bit of that because it's gonna help us understand this better.
• 2:30
  SPEAKER_00: But first of all, what caught Winston's attention was the politicians.
• 2:35
  SPEAKER_00: And let me walk you through them because they're not just random politicians, they're sitting in Congress.
• 2:42
  SPEAKER_00: The number one is called Byron Donalds.
• 2:44
  SPEAKER_00: He's a Republican from Florida, and he sits in the Financial Services Committee, specifically the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.
• 2:58
  SPEAKER_00: He also sits on the Oversight and Government Reform Committee.
• 3:02
  SPEAKER_00: So this is the guy who literally oversees AI and FinTech regulation, and he's buying a stock that is one of the biggest AI enterprise platforms in the world.
• 3:13
  SPEAKER_00: Pure coincidence.
• 3:15
  SPEAKER_00: Obviously, he would never use insider knowledge for his own benefit.
• 3:19
  SPEAKER_00: I'm sure he's just doing it for the puppies.
• 3:22
  SPEAKER_00: And then we've got another Republican, he's called Tony Wyatt.
• 3:26
  SPEAKER_00: I don't probably mispronouncing that, he's from Wisconsin.
• 3:28
  SPEAKER_00: And he's actually the biggest buyer of the bunch.
• 3:31
  SPEAKER_00: He chairs the subcommittee on contracting in infrastructure.
• 3:36
  SPEAKER_00: He also sits on the Transportation Infrastructure Committee.
• 3:39
  SPEAKER_00: Now, why the heck does that matter?
• 3:41
  SPEAKER_00: Because he oversees how government contracts, because he oversees government contracts with technology companies.
• 3:49
  SPEAKER_00: And guess what?
• 3:50
  SPEAKER_00: ServiceNow just signed a massive government deal.
• 3:54
  SPEAKER_00: Maybe he knew about that.
• 3:55
  SPEAKER_00: Again, he would never use that information for personal benefit.
• 3:58
  SPEAKER_00: I'm sure the profits from the trade, if they are any, will be donated to the local kitten sanctuary.
• 4:05
  SPEAKER_00: And then we've got one of the top traders out there, a chap called Ro Canner.
• 4:09
  SPEAKER_00: He's from California, and he sits on the Armed Services Committee.
• 4:13
  SPEAKER_00: Specifically, the Cyber Information Technology and Innovation Subcommittee.
• 4:18
  SPEAKER_00: He's also on the Oversight Committee for Cybersecurity and AI.
• 4:23
  SPEAKER_00: Yeah, that one.
• 4:24
  SPEAKER_00: And he's also on the Select Committee on Strategic Competition with China.
• 4:29
  SPEAKER_00: That's how we have to say it now.
• 4:30
  SPEAKER_00: That's what the president said.
• 4:32
  SPEAKER_00: So he sits on two subcommittees that directly oversee cybersecurity and government IT spending.
• 4:37
  SPEAKER_00: Again, you would never use that information for his own benefit.
• 4:41
  SPEAKER_00: No, no, no, no.
• 4:42
  SPEAKER_00: He's donating it to a GOAT sanctuary in California.
• 4:46
  SPEAKER_00: Now, Rokanna's investment portfolio has beaten the SP by 112% since 2024, since you got data.
• 4:54
  SPEAKER_00: 112% higher returns.
• 4:56
  SPEAKER_00: So he's got, you know, Nancy Pelosi, you know, everyone knows her, right?
• 5:00
  SPEAKER_00: She's done about a third what Rokanna has done.
• 5:03
  SPEAKER_00: For some reason, everyone's in, you know, blaming the wrong one for being the greatest stock trader of all time.
• 5:09
  SPEAKER_00: No, it's actually Rokanna.
• 5:11
  SPEAKER_00: And he invested in a little stock that we covered a little while ago, too, and it's called Sandisk.
• 5:18
  SPEAKER_00: And since he bought it, it went up 3,000%.
• 5:24
  SPEAKER_00: And now he's buying service now.
• 5:27
  SPEAKER_00: So best track record in Congress, access to all the insider information, which you'd of course never use, right?
• 5:33
  SPEAKER_00: I think I need to keep saying that, otherwise, you know, they might come after me.
• 5:37
  SPEAKER_00: Um we should probably cut that part out.
• 5:39
  SPEAKER_00: And then we've got Chuck Fleischmann, which is a glorious name, um, a Republican from Tennessee.
• 5:45
  SPEAKER_00: I wish I could do American accents.
• 5:47
  SPEAKER_00: Wouldn't that be fun if I could do an accent for every one of those?
• 5:49
  SPEAKER_00: I should probably work on that.
• 5:50
  SPEAKER_00: Now he sits on the appropriations committee, and most people know that's where the powerful people sit, because they decide where the government spends money.
• 5:58
  SPEAKER_00: That's it.
• 5:59
  SPEAKER_00: They hold the checkbook.
• 6:00
  SPEAKER_00: So Fleischman specifically chairs the Energy and Water Development Subcommittee.
• 6:05
  SPEAKER_00: He sits on the Defense Appropriations and the Science, Space and Technology Committee.
• 6:10
  SPEAKER_00: So the guy who owns the government's checkbook and he buys a stock, well, you kind of want to know why, right?
• 6:17
  SPEAKER_00: We got two more.
• 6:18
  SPEAKER_00: Uh, we're going through them quickly.
• 6:19
  SPEAKER_00: Josh Gottheimer, a Democrat from New Jersey.
• 6:22
  SPEAKER_00: Um, he sits on the Permanent Select Committee on Intelligence.
• 6:26
  SPEAKER_00: It's a ranking member of the NSA and Cyber Subcommittee.
• 6:30
  SPEAKER_00: These guys have got some influence, right?
• 6:32
  SPEAKER_00: So I'm gonna keep saying this.
• 6:34
  SPEAKER_00: They're doing this for the greater good.
• 6:35
  SPEAKER_00: We just don't understand that.
• 6:36
  SPEAKER_00: You know, the mighty, they do things in peculiar ways.
• 6:38
  SPEAKER_00: Uh, there is no personal interest, they're not into in it uh for personal gain and so on.
• 6:43
  SPEAKER_00: I feel that gets me off the NSA list.
• 6:45
  SPEAKER_00: Um, he also oversees AI, financial technology, and all that stuff.
• 6:49
  SPEAKER_00: So he has top secret intelligence clearance, right?
• 6:52
  SPEAKER_00: Um, and he's buying service now.
• 6:54
  SPEAKER_00: And then numero six is Michael McCall, a Republican from the glorious state of Texas.
• 7:01
  SPEAKER_00: He's the vice chair of the Homeland Security Committee.
• 7:04
  SPEAKER_00: Again, he's doing this for the kittens and the puppies.
• 7:07
  SPEAKER_00: I want to make that very clear.
• 7:09
  SPEAKER_00: Um, he also literally founded the Congressional High Tech Caucus.
• 7:14
  SPEAKER_00: He co-chairs the Congressional Cybersecurity Caucus.
• 7:17
  SPEAKER_00: The man who created Congress's technology group and its cybersecurity group is buying a cybersecurity and AI stock.
• 7:27
  SPEAKER_00: Hmm.
• 7:27
  SPEAKER_00: So let me connect the dots for you.
• 7:30
  SPEAKER_00: Service now, and if you haven't seen the stock chart for it yet, looks pretty scary.
• 7:35
  SPEAKER_00: It was trading at$230 right now, it's trading at less than half.
• 7:38
  SPEAKER_00: They just signed a massive deal with the GSA.
• 7:41
  SPEAKER_00: Winston, what's the GSA?
• 7:43
  SPEAKER_00: The GSA is the General Services Administration.
• 7:47
  SPEAKER_00: It's the agency that handles purchasing for the entire federal government.
• 7:52
  SPEAKER_00: Boring, I know, but the deal gives federal agencies a 70% discount on ServicesNow AI platform.
• 7:59
  SPEAKER_00: Now, the GSA has driven over 60 billion in contract savings using platforms like ServiceNow since last year.
• 8:07
  SPEAKER_00: And these politicians sit on the committee that oversees these very contracts.
• 8:12
  SPEAKER_00: And it is not just Congress.
• 8:14
  SPEAKER_00: Presidente El Trumpo personally holds over a million dollars in ServiceNow stock, and it's his administration that signed that GSA deal.
• 8:23
  SPEAKER_00: So when the president owns the stock, his administration is signing deals with the company.
• 8:28
  SPEAKER_00: It's kind of an added data point that's hard to ignore, but it gets even better than that.
• 8:33
  SPEAKER_00: The CEO is buying it too.
• 8:35
  SPEAKER_00: Bill McDermott, the CEO of ServiceNow, does put three million bucks of his own personal money into the stock down here.
• 8:43
  SPEAKER_00: Now, CEOs sell stock for many reasons.
• 8:47
  SPEAKER_00: The mistress is more expensive, he needs a bigger yacht, you know, that kind of thing.
• 8:52
  SPEAKER_00: The Connecticut house uh needs an extension, all that sort of stuff.
• 8:57
  SPEAKER_00: But when they buy stock, their own stock, they do it for one reason.
• 9:02
  SPEAKER_00: And the way he phrases this, and I quote, he says, it is a once-in-a-generation moment.
• 9:07
  SPEAKER_00: And then he canceled his automatic stock selling plan.
• 9:11
  SPEAKER_00: You know those plans where CEOs schedule stock sales in advance?
• 9:14
  SPEAKER_00: He cancelled it and he went from scheduled selling to active buying for other executives to done the exact same thing.
• 9:22
  SPEAKER_00: They've also just announced they're gonna buy back 5 billion off their own stock.
• 9:25
  SPEAKER_00: Stock even.
• 9:26
  SPEAKER_00: So CEO stops selling and starts buying with his own money.
• 9:30
  SPEAKER_00: Kind of interesting, isn't it?
• 9:31
  SPEAKER_00: Now, we're gonna go a little bit deeper for those of you who like going a little bit deeper and really understand this, because of course there is uh risk with it, and I want to make sure you understand that.
• 9:40
  SPEAKER_00: But let me ask you, but let me ask you something and be honest with yourself.
• 9:46
  SPEAKER_00: Have you ever bought a stock sort of up here?
• 9:49
  SPEAKER_00: Then it went down lower, and maybe you even bought some more here and here because it looked cheap, as the discount averaging crowd keeps telling you, and you watched it fall and fall and fall.
• 10:02
  SPEAKER_00: If you've done that, put the stock name in the comments.
• 10:04
  SPEAKER_00: Let's make this a uh we buy too late anonymous group here, uh, and it'll honestly help people.
• 10:10
  SPEAKER_00: People will feel better if you share that with them, because then they're like, okay, I'm not the only Muppet out there.
• 10:15
  SPEAKER_00: No, it is actually normal to do that.
• 10:18
  SPEAKER_00: But how does it feel?
• 10:20
  SPEAKER_00: How does it feel watching your hard-earned money disappear?
• 10:22
  SPEAKER_00: Does it make you angry, frustrated, pissed off, screen manipulation, you know, tear your hair out?
• 10:28
  SPEAKER_00: Uh, or maybe you just get sad.
• 10:30
  SPEAKER_00: Well, guess what?
• 10:32
  SPEAKER_00: The reason you're doing that is because no one's ever taught you that Wall Street has a simple solution to that.
• 10:38
  SPEAKER_00: A way this never happens to them.
• 10:41
  SPEAKER_00: Now they don't advertise the system, which I think is just incredibly unfair.
• 10:45
  SPEAKER_00: And if you agree with me on that, maybe put that in the comments as well.
• 10:48
  SPEAKER_00: Just write unfair in there.
• 10:50
  SPEAKER_00: So Winston and I are gonna do something special for you.
• 10:54
  SPEAKER_00: This coming weekend, we're gonna teach you in a free workshop how to fix bad timing once and for all.
• 11:01
  SPEAKER_00: That's the tackle.
• 11:02
  SPEAKER_00: How to fix bad timing once and for all.
• 11:03
  SPEAKER_00: Imaginative, I know.
• 11:05
  SPEAKER_00: And you can get your free seat for that at fixinvesting.com.
• 11:09
  SPEAKER_00: Fixinvesting.com.
• 11:11
  SPEAKER_00: And if you're thinking, but Felix, nobody can time the market perfectly.
• 11:14
  SPEAKER_00: Well, yes, you'd be right.
• 11:16
  SPEAKER_00: But the kind of buying up here and then holding onto it down here for the pain, watching your wealth get destroyed, that is avoidable.
• 11:25
  SPEAKER_00: Nobody needs to ever have a 30% down on a stock.
• 11:29
  SPEAKER_00: It is literally avoidable.
• 11:31
  SPEAKER_00: And I'll teach you the system that Wall Street's been teaching their bankers for the last 50 years.
• 11:36
  SPEAKER_00: So get your free seat at fixinvesting.com.
• 11:39
  SPEAKER_00: We're gonna have a blast and be there on time.
• 11:43
  SPEAKER_00: That's all I ask.
• 11:44
  SPEAKER_00: And let's get back to the program.
• 11:47
  SPEAKER_00: Okay, so what's what's ServiceNow really, what do they actually do?
• 11:51
  SPEAKER_00: People always want to know what stocks do, don't they?
• 11:53
  SPEAKER_00: Uh, and it's a it's a good kind of curiosity.
• 11:56
  SPEAKER_00: What does the company actually do?
• 11:57
  SPEAKER_00: Okay, let me explain this in the simplest way possible.
• 12:00
  SPEAKER_00: Imagine a big company, like uh, say, a bank or a or a hospital or some sort of government agencies, you know, thousands of employees, hundreds of departments, millions of tasks happening every day.
• 12:12
  SPEAKER_00: Uh, somebody needs a new laptop.
• 12:14
  SPEAKER_00: A customer calls with a complaint, security alert goes off, a new employee needs to be on boarded, an invoice needs approval.
• 12:21
  SPEAKER_00: All those things need to flow through a system, and someone needs to assign it, track it, make sure it gets done, and make sure nothing falls through the cracks.
• 12:30
  SPEAKER_00: That is what ServiceNow does.
• 12:32
  SPEAKER_00: It is the nervous, nervous system of a company.
• 12:35
  SPEAKER_00: It connects everything.
• 12:37
  SPEAKER_00: So sort of if a company is a imagine if a company is a human body, you can see artiste and work here.
• 12:45
  SPEAKER_00: Uh ServiceNow is the sort of nervous system that connects all the bits up to you know where the brain is meant to be.
• 12:53
  SPEAKER_00: Um, so it's the thing that connects the brain to the muscles.
• 12:56
  SPEAKER_00: Without it, you're just a vegetable.
• 12:59
  SPEAKER_00: And when you call your bank and say they fix your problem, instead, you know, what is involved?
• 13:04
  SPEAKER_00: ServiceNow.
• 13:05
  SPEAKER_00: It's probably running there behind the scenes.
• 13:07
  SPEAKER_00: And the employee at a big tech company needs access to a new tool, ServiceNow is probably giving it the access.
• 13:13
  SPEAKER_00: When a hospital manages your patient data and makes sure nothing gets missed, ServiceNow is probably running in the background.
• 13:21
  SPEAKER_00: So I can guarantee you that your personal data is being handled by ServiceNow.
• 13:26
  SPEAKER_00: And the reason for that is that 85% of Fortune, if I could spell, 500 companies, Winston perked up there, um, 85% of them use this product.
• 13:40
  SPEAKER_00: So 85 out of hundreds of America's biggest companies use the product.
• 13:44
  SPEAKER_00: And 98% of their customers renew every year, which is just unbelievable, isn't it, Winston?
• 13:53
  SPEAKER_00: Unbelievable.
• 13:54
  SPEAKER_00: So once you start using service now, you don't stop.
• 13:56
  SPEAKER_00: Why?
• 13:57
  SPEAKER_00: Because ripping out your nervous system is really, really painful.
• 14:01
  SPEAKER_00: It's sticky, it's woven into everything that they do, all the boring bits.
• 14:06
  SPEAKER_00: So I was looking at this, the financials, to be honest with you, and I was kind of still thinking, like, I don't really get it.
• 14:12
  SPEAKER_00: Because if you go into the Winston app here and you just type now, there's a stock ticker, or you go about service now in there, and you see this little row here, right?
• 14:20
  SPEAKER_00: There are other companies that have the word now in it, obviously.
• 14:22
  SPEAKER_00: Um, we're given it a GOAT score of four Winstons out of five Winstons, which is which is pretty good, right?
• 14:29
  SPEAKER_00: Four Winstons out of five, score of 75 out of 100, pretty good.
• 14:33
  SPEAKER_00: But then you see these little green bars.
• 14:34
  SPEAKER_00: These little green bars are the rate at which the profits are growing.
• 14:39
  SPEAKER_00: And if you hover over that, maybe we can zoom in on that on the edit, you can see that their profits were growing at just 2% last quarter, which is like, right?
• 14:49
  SPEAKER_00: Boring, isn't it, Winston?
• 14:50
  SPEAKER_00: Very boring.
• 14:51
  SPEAKER_00: We don't really like that sort of thing.
• 14:53
  SPEAKER_00: So it makes me wonder: well, what's about to change?
• 14:56
  SPEAKER_00: Maybe these guys know something that they heard on the street, you know, obviously not in a subcommittee because they'd never use that information for personal gain.
• 15:03
  SPEAKER_00: No, of course not.
• 15:05
  SPEAKER_00: Um, that makes them think this slump in profit growth has just been fixed.
• 15:11
  SPEAKER_00: And then I opened up our detail page for the for the service now, and we have something in there called the growth profile.
• 15:17
  SPEAKER_00: So for growth stocks that are growing a lot, we look at not just profit, but like actually growth.
• 15:23
  SPEAKER_00: And look at that.
• 15:24
  SPEAKER_00: Growth is actually looking pretty good, 22%.
• 15:28
  SPEAKER_00: RD spend is rising.
• 15:31
  SPEAKER_00: Now, why is that a good thing?
• 15:33
  SPEAKER_00: Companies wasting more money?
• 15:34
  SPEAKER_00: No.
• 15:34
  SPEAKER_00: If you're innovating, if you're building something new that could make you more profitable, well, you're gonna have to spend some money on research and development.
• 15:42
  SPEAKER_00: So, generally speaking, for growth stocks, we want them to spend more on research and development than the year before.
• 15:49
  SPEAKER_00: And guess what?
• 15:51
  SPEAKER_00: They're generating cash.
• 15:53
  SPEAKER_00: They have 2.7 billion cash on hand.
• 15:55
  SPEAKER_00: They generated$1.5 billion in cash last quarter.
• 16:00
  SPEAKER_00: It's just sort of lingering around in their bank account.
• 16:03
  SPEAKER_00: And they're putting some of that into RD, which is actually pretty good.
• 16:07
  SPEAKER_00: It's got very good margins, growing pretty consistently the revenue.
• 16:12
  SPEAKER_00: It's just their profits took a dip.
• 16:14
  SPEAKER_00: So why did their profits take a dip?
• 16:16
  SPEAKER_00: Well, quite possibly because they are investing more into what's going to make them a better and more profitable company.
• 16:23
  SPEAKER_00: Now, that may or may not happen.
• 16:25
  SPEAKER_00: I'm not saying that it definitely will, but I'm saying that those six happy folks plus El Presidente, they obviously think there is something in this.
• 16:34
  SPEAKER_00: So this isn't a startup burning through investor money, it's a profitable cash-generating machine.
• 16:40
  SPEAKER_00: And they have over 630 customers spending more than 5 million a year on them.
• 16:45
  SPEAKER_00: So it's obviously doing something right.
• 16:47
  SPEAKER_00: Now, if you're wondering how we come up with our Winston scores here of 75, and Winston says he's happy, high-quality business with solid fundamentals, it literally means it's a high-quality business, solid fundamentals, and we use five pillars for that under that are underlying.
• 17:05
  SPEAKER_00: Quality, and again, there's an explanation for all that stuff in here.
• 17:08
  SPEAKER_00: You just click on the little question marks, growth, cash flow, how stable it is as in debt, and then valuations.
• 17:16
  SPEAKER_00: And if you really want to understand how that works, just go into the Winston app and expand the thing on the bottom of the page here, and we have a proper little lesson in there of how that works.
• 17:27
  SPEAKER_00: There is also a video lesson that I made for all of that, so you can you can watch those as well, exactly how that functions and how we come up with those.
• 17:36
  SPEAKER_00: The goal is to give you a very quick snapshot of what a stock is, how it actually works.
• 17:41
  SPEAKER_00: Um, and I'm thinking it might be interesting to add these politician investments to this, don't you think?
• 17:47
  SPEAKER_00: I think that could be something we might want to do.
• 17:48
  SPEAKER_00: Uh, Winston, what do you think?
• 17:50
  SPEAKER_00: Should we add that to the Winston app?
• 17:51
  SPEAKER_00: What do you think?
• 17:52
  SPEAKER_00: Politicians?
• 17:53
  SPEAKER_00: Yes?
• 17:54
  SPEAKER_00: Well, he's gonna have to do the hard coding here, so we have to get his approval.
• 17:58
  SPEAKER_00: But I think that might be a good thing to sniff out for you guys.
• 18:00
  SPEAKER_00: So again, there's a link down below to get um to get the Winston app.
• 18:04
  SPEAKER_00: It's uh there's a free trial, zero risk, 30-day money-back guarantee, and all of that.
• 18:08
  SPEAKER_00: I don't want to lock you guys into something.
• 18:10
  SPEAKER_00: I want to give you something that's insanely valuable so you can make better decisions.
• 18:13
  SPEAKER_00: That's always why we why we do things around here.
• 18:15
  SPEAKER_00: Now, having said all of that, why oh why did such a great company, loved by everybody who matters, do this here?
• 18:26
  SPEAKER_00: And by this here, I mean money destruction extraordinaire, 56% down.
• 18:33
  SPEAKER_00: So what happens?
• 18:34
  SPEAKER_00: Well, Wall Street's come up with a phrase and they call it SaaS Apocalypse.
• 18:40
  SPEAKER_00: Now, SAS Apocalypse is um the apocalypse for software as a service companies.
• 18:47
  SPEAKER_00: The fear goes like this AI is going to make the theory is this AI is going to make all employees absolute.
• 18:59
  SPEAKER_00: We won't need employees anymore.
• 19:01
  SPEAKER_00: So if AI can do the work of 10 people, companies won't need 10 people.
• 19:05
  SPEAKER_00: If they don't need 10 people, they don't need licenses for software.
• 19:12
  SPEAKER_00: Licenses.
• 19:13
  SPEAKER_00: So right now, say you have 10 licenses.
• 19:16
  SPEAKER_00: If we only need one, the theory is that a company like ServiceNow will lose 90% of revenue.
• 19:22
  SPEAKER_00: And that fear rip for the entire software sector.
• 19:25
  SPEAKER_00: Billions of dollars in market value, whoosh, gone.
• 19:28
  SPEAKER_00: Sort of sounds logical, doesn't it?
• 19:30
  SPEAKER_00: Fewer employees means fewer licenses required.
• 19:33
  SPEAKER_00: But here's the thing about simple maths on Wall Street, it's usually wrong.
• 19:37
  SPEAKER_00: Because you see, ServiceNow isn't being replaced by AI.
• 19:43
  SPEAKER_00: ServiceNow is becoming the AI platform.
• 19:47
  SPEAKER_00: So let me explain this with an analogy that is hopefully understandable.
• 19:51
  SPEAKER_00: AI is like a really smart new employee.
• 19:54
  SPEAKER_00: Brilliant.
• 19:54
  SPEAKER_00: Can work 24 hours a day, never takes a lunch break, amazing.
• 19:57
  SPEAKER_00: But even the smartest employee in the world needs a desk.
• 20:01
  SPEAKER_00: They need a phone, they need a computer, they need a system to work in, they need to know which tasks to do, who to report to, and how to file their work.
• 20:09
  SPEAKER_00: ServiceNow is that system.
• 20:11
  SPEAKER_00: AI doesn't replace ServiceNow.
• 20:14
  SPEAKER_00: AI needs ServiceNow to actually do anything useful inside a company.
• 20:18
  SPEAKER_00: Because ServiceNow is already familiar with the entire machinery that's inside the business.
• 20:25
  SPEAKER_00: So the CEO of ServiceNow put it like this: he said, AI without a workflow platform is like a brain without a body.
• 20:33
  SPEAKER_00: Sort of sits there in a jar, not very useful.
• 20:36
  SPEAKER_00: And the numbers actually back him up.
• 20:38
  SPEAKER_00: ServiceNow launched an AI product, imaginatively, it's called Now Assist.
• 20:43
  SPEAKER_00: And it's gone from zero revenue to 750 million beautiful American dollars in contract value.
• 20:53
  SPEAKER_00: They're targeting 1.5 billion by the end of this year.
• 20:57
  SPEAKER_00: So let me put that into perspective.
• 20:59
  SPEAKER_00: ServicesNow's core product, you know, the thing that they actually make money out of, it took them 20 years to achieve this kind of revenue.
• 21:09
  SPEAKER_00: The AI product is growing at warb speed.
• 21:12
  SPEAKER_00: And the really clever part, ServiceNow is shifting its business model.
• 21:16
  SPEAKER_00: So instead of charging per seat per employee, because they don't want to please Wall Street, they're moving to a consumption model.
• 21:23
  SPEAKER_00: You pay based on how much AI work you use, not how many humans you have.
• 21:28
  SPEAKER_00: And half of the new contracts are already on this new model.
• 21:31
  SPEAKER_00: So even if the companies do fire everybody because of AI, ServiceNow will still win because the AI agents running those workflows are now gonna be doing more work.
• 21:41
  SPEAKER_00: So they're gonna pay more money to ServiceNow.
• 21:43
  SPEAKER_00: So Wall Street sees AI as a threat.
• 21:46
  SPEAKER_00: ServiceNow sees AI as the biggest growth opportunity in its histories.
• 21:51
  SPEAKER_00: And so far, the numbers indicate that they might just be right.
• 21:55
  SPEAKER_00: And the opportunity is simple.
• 21:58
  SPEAKER_00: The stock a year ago was.
• 22:00
  SPEAKER_00: Trading at over a hundred times P, which is kind of expensive.
• 22:04
  SPEAKER_00: Today it trades at about 60x, but if you go forward one year, it trades at only 20x.
• 22:16
  SPEAKER_00: Actually, 14.
• 22:17
  SPEAKER_00: I put it in here.
• 22:18
  SPEAKER_00: You see that?
• 22:18
  SPEAKER_00: Not 20, 14.
• 22:19
  SPEAKER_00: Can you see that?
• 22:20
  SPEAKER_00: Let me zoom in on that for you.
• 22:21
  SPEAKER_00: So see, earnings expected to grow meaningfully, cheaper on forward P.
• 22:26
  SPEAKER_00: It's going from 60 to 14.8, which is pretty cheap.
• 22:30
  SPEAKER_00: Okay, I'm not a financial advisor, I'm not telling you to buy this.
• 22:32
  SPEAKER_00: I actually don't own the stock yet.
• 22:34
  SPEAKER_00: So I'm not trying to pump it in any way, shape, or form.
• 22:37
  SPEAKER_00: I always let you know if I own a stock.
• 22:39
  SPEAKER_00: But they're growing.
• 22:40
  SPEAKER_00: They're growing at 22% their revenue.
• 22:44
  SPEAKER_00: They can figure out their profits because AI products should actually be cheaper.
• 22:49
  SPEAKER_00: CEO is buying it, politicians are buying it, El Presidente is buying it, and it's trading at a Microsoft valuation, which is actually growing slower.
• 22:57
  SPEAKER_00: It's exactly what creates an opportunity.
• 23:00
  SPEAKER_00: Now, let me give you a little bit about what I'm going to teach you on the weekend.
• 23:05
  SPEAKER_00: To me, this is still very early.
• 23:08
  SPEAKER_00: Very, very, very, very early.
• 23:11
  SPEAKER_00: And therefore, it comes with more risk.
• 23:14
  SPEAKER_00: I see some things in here which are good.
• 23:17
  SPEAKER_00: Some nice green days here, for example, with some good volume, but we still saw some dumping as it moved up.
• 23:23
  SPEAKER_00: There's still some people in this who want to get rid of it.
• 23:26
  SPEAKER_00: And that might mean that we might go sideways for a little bit longer, which could actually be a good thing.
• 23:31
  SPEAKER_00: So, how do we how do we deal with stocks like this?
• 23:33
  SPEAKER_00: Well, you want to look at what's the bull case.
• 23:38
  SPEAKER_00: Insiders buying is definitely something to get our attention.
• 23:42
  SPEAKER_00: And by insiders I mean the CEO and management.
• 23:46
  SPEAKER_00: Politicians, politicians, it's a difficult word for me to spell.
• 23:52
  SPEAKER_00: Seriously, I spell like a six year old and it is a little challenging with the pen.
• 23:56
  SPEAKER_00: Interesting.
• 23:57
  SPEAKER_00: El Presidente?
• 23:59
  SPEAKER_00: Trump.
• 24:00
  SPEAKER_00: Also interesting.
• 24:02
  SPEAKER_00: Now, if it was the local mayor buying it, I would be not interested at all.
• 24:05
  SPEAKER_00: But given that these guys sit on all the committees that handle all the money in the AI contracts and so on, hmm.
• 24:11
  SPEAKER_00: Also interesting.
• 24:12
  SPEAKER_00: I then like to look at customer retention, for example.
• 24:16
  SPEAKER_00: These guys really, really retain them very well.
• 24:19
  SPEAKER_00: 98% of their customers stick around, which is pretty extraordinary.
• 24:22
  SPEAKER_00: Literally, you can very hard to find a business without strong of a customer lock-in.
• 24:26
  SPEAKER_00: It's a bit like a like a crack dealer.
• 24:29
  SPEAKER_00: Once you're addicted, you really are addicted.
• 24:31
  SPEAKER_00: So that's kind of how I compare it.
• 24:33
  SPEAKER_00: And then I want to look for some sort of tailwind.
• 24:36
  SPEAKER_00: And in this case, it is actually AI, because that new AI product is gone from zero to 750 million, 1.5 billion by the end of this year.
• 24:45
  SPEAKER_00: And they've very smartly changed the way that their price, not per employee, but per usage.
• 24:50
  SPEAKER_00: And then, yes, valuations also matter.
• 24:52
  SPEAKER_00: So this thing is trading at a 15 times forward PE, which in a simple next year's profits for 15 years will be the value of your stock.
• 25:04
  SPEAKER_00: And you maybe think, well, it's quite expensive still.
• 25:07
  SPEAKER_00: By the stock markets and tech stocks, generally, that's a pretty reasonable valuation.
• 25:12
  SPEAKER_00: What are the other catalysts we have?
• 25:13
  SPEAKER_00: We have that 5 billion buyback.
• 25:16
  SPEAKER_00: So the company is going to destroy shares, which brings the value of the existing shares up.
• 25:22
  SPEAKER_00: And then we've got the government deal, the GSA deal that I mentioned at the beginning.
• 25:27
  SPEAKER_00: Now, having said all of that, the market is always right.
• 25:31
  SPEAKER_00: So the fact that the stock's down 50% here is yes, an opportunity because if it were to go back up, it would be 120% up.
• 25:40
  SPEAKER_00: But you also have to realize a lot of people don't want to own the stock.
• 25:43
  SPEAKER_00: That's why it's selling off.
• 25:44
  SPEAKER_00: And the sell-up has been pretty, pretty violent.
• 25:46
  SPEAKER_00: So I want to look for a clear signal here where I can see institutional money pouring into it.
• 25:51
  SPEAKER_00: I've got an inkling of it here, but not enough.
• 25:54
  SPEAKER_00: So for me, I'm personally going to sit on this one.
• 25:56
  SPEAKER_00: I'm going to sit on this one a little bit.
• 25:58
  SPEAKER_00: And join me on the weekend, and I'll explain exactly what we're looking for here.
• 26:02
  SPEAKER_00: But we're probably looking for this to go up a little bit higher, maybe into the 110 or so.
• 26:08
  SPEAKER_00: If you want to become more conservative, maybe even up to$120, to get a higher probability that this thing is actually going to rip.
• 26:18
  SPEAKER_00: But there are a lot of reasons to really pay attention to this.
• 26:21
  SPEAKER_00: So we can see very clearly revenue is growing, it's growing stronger and stronger and stronger.
• 26:26
  SPEAKER_00: They're generating money, they're investing, they're kind of doing all the right things, and the CEO is putting his money where his mouth is, right?
• 26:32
  SPEAKER_00: Even if it's a big mouth like this one here.
• 26:34
  SPEAKER_00: So let me know what you make of this.
• 26:38
  SPEAKER_00: This has been useful to you.
• 26:39
  SPEAKER_00: Let me know.
• 26:40
  SPEAKER_00: But most importantly, learn how to not get these things terribly wrong.
• 26:47
  SPEAKER_00: Because that's actually where we lose 90% of our money.
• 26:50
  SPEAKER_00: Most people, as I say, will buy this stock when it's and if it goes back up to here.
• 26:58
  SPEAKER_00: This is where the media will start talking about it.
• 27:00
  SPEAKER_00: This is where retail will start buying it.
• 27:02
  SPEAKER_00: And I can tell you, it's probably going to come down again.
• 27:06
  SPEAKER_00: Because that's what businesses and stocks do.
• 27:09
  SPEAKER_00: Why?
• 27:09
  SPEAKER_00: Because the smart money is getting in somewhere here, and it is then exiting somewhere there.
• 27:16
  SPEAKER_00: Because why?
• 27:17
  SPEAKER_00: Well, they want to make money.
• 27:20
  SPEAKER_00: Money, as they say, in certain parts of the United Kingdom.
• 27:24
  SPEAKER_00: And that's what it's all about.
• 27:26
  SPEAKER_00: It's not about blindly holding a stock, it's not about developing some sort of faith in a business or its CEO or contracting conviction, which is a disease for which they are apparently working on a vaccine for.
• 27:40
  SPEAKER_00: It is about making money so you have more choices, you have more freedom.
• 27:45
  SPEAKER_00: The last run-up, from where I say it would have been the right entry point, was about 160%.
• 27:51
  SPEAKER_00: And you could have realized, I think, about 140% of that.
• 27:55
  SPEAKER_00: 160 would be timing the market doesn't work.
• 27:57
  SPEAKER_00: The 140% would have been being smart about it.
• 28:00
  SPEAKER_00: So what I'm saying to you is learn how, if this stock rallies, we collect our gains and then we exit them with a great big profit because that way we'll have more money for the next opportunity, which is ultimately what this game is all about.
• 28:16
  SPEAKER_00: If you got some value out of this, come and join me on the weekend, fixinvesting.com.
• 28:20
  SPEAKER_00: It is free.
• 28:21
  SPEAKER_00: I'll probably go for two hours because I really want to go deep with you guys on this.
• 28:25
  SPEAKER_00: I want to teach you a lot.
• 28:27
  SPEAKER_00: And you will then learn how to take advantage of every opportunity you see and be able to assess it and say, no, this is too risky for me.
• 28:35
  SPEAKER_00: This is the right kind of risk for me.
• 28:37
  SPEAKER_00: This is how I handle it.
• 28:38
  SPEAKER_00: This is how much I want to put in it, this is where I want to buy, this is where I want to sell, which is the most important thing in the world, quite frankly.
• 28:44
  SPEAKER_00: So if you got some value out of this, share this video with other people or golden retrievers.
• 28:50
  SPEAKER_00: Join us at fixinvesting.com.
• 28:52
  SPEAKER_00: Share that link with other people because the more people we can teach how this works, the less pain there is in the world and the more time people will have for the golden retrievers.
• 29:00
  SPEAKER_00: And I wish you tremendous success.