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Investor Daily: Are Tech Stocks Overvalued? & Why is Everything Falling... · Earn Your Leisure

• 0:01
  Speaker 1: This episode is brought to you by P and C Bank.
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  Speaker 1: A lot of people think podcasts about work are boring,
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• 0:39
  Speaker 1: National Association Member FDIC.
• 0:43
  Speaker 2: Is everything overvalued? And why is everything falling?
• 0:49
  Speaker 3: Things are falling because they're coming back to the prices
• 0:51
  Speaker 3: what they should be. I'll get into it later, but
• 0:59
  Speaker 3: this is going to be the third year that we
• 1:01
  Speaker 3: had more than twenty percent return in the market, three
• 1:05
  Speaker 3: years in a row. Shotty, you brought this up last year, right.
• 1:10
  Speaker 3: The last time that happened was in the dot com era.
• 1:16
  Speaker 2: Ninety eight ninety nine. Two thousand people are front.
• 1:20
  Speaker 3: Running the games because they know a corrective measure will
• 1:24
  Speaker 3: be taken sometime next year, in twenty twenty eight. This
• 1:28
  Speaker 3: is why Sam is trying to clean up his image
• 1:30
  Speaker 3: and his kerfuffle that he had last.
• 1:31
  Speaker 2: Week with Brad Gersner.
• 1:33
  Speaker 3: So that IPO adds it will be okay. But there's
• 1:37
  Speaker 3: been a lot of overvaluation and over hyped talk about
• 1:43
  Speaker 3: AI because everyone is trying to squeeze in the games
• 1:47
  Speaker 3: they need in to get them through the next two
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  Speaker 3: or three years for the downturn that we're going to have, So.
• 1:53
  Speaker 2: All we overvalue.
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  Speaker 3: Yes, we'll talk about Peter Till and the video and
• 1:58
  Speaker 3: all in the second but the market is run up
• 2:02
  Speaker 3: a lot and it's just correcting to where it should be,
• 2:04
  Speaker 3: and people are panicking. And most people are panicking because
• 2:07
  Speaker 3: they bought at levels where they shouldn't be buying Bitcoin
• 2:10
  Speaker 3: and video, Oracle, Oscar health, everything was bought at two
• 2:16
  Speaker 3: high a price. Palenteer as well. And when the front
• 2:20
  Speaker 3: running ends, people begin to take profits. And as Rashot,
• 2:24
  Speaker 3: I love when you always say there's nothing wrong with
• 2:26
  Speaker 3: taking profit. But when you see Buffetts start to ease
• 2:30
  Speaker 3: into Google for the first time in history on the exit,
• 2:36
  Speaker 3: Apple and Google are going to be the new bonds.
• 2:39
  Speaker 3: Apple is projected to give twenty six to thirty percent
• 2:42
  Speaker 3: return over the next five years. It's five to six
• 2:44
  Speaker 3: percent a year. That's the new bond market. It's a
• 2:48
  Speaker 3: haven of safety. The market will ultimately be okay.
• 2:53
  Speaker 2: But some of these valuations are absolutely insane and I
• 2:57
  Speaker 2: for the price.
• 2:58
  Speaker 4: Yeah, yeah, I agree. I think yes, some of these companies.
• 3:03
  Speaker 1: I see somebody in the chat put Palenteer in terms
• 3:05
  Speaker 1: of valuations and just I mean it is. It has
• 3:09
  Speaker 1: run to a place where it almost feels uncomfortable. I
• 3:13
  Speaker 1: think that the issue is that earnings has kept pace
• 3:17
  Speaker 1: with this type of growth and at some point that
• 3:20
  Speaker 1: has to decelerate.
• 3:21
  Speaker 4: Right, Like we we'll.
• 3:23
  Speaker 1: Talk about this more in the show when we as
• 3:25
  Speaker 1: we're looking forward to to Wednesday, Like when the market
• 3:28
  Speaker 1: is priced to perfection, right, perfection.
• 3:31
  Speaker 2: Won't be good enough.
• 3:33
  Speaker 1: Right, So even you know there's good life that's going
• 3:36
  Speaker 1: to report and how it can shift the market if
• 3:40
  Speaker 1: it does well and it has future, God, it still might.
• 3:43
  Speaker 2: Not be enough.
• 3:45
  Speaker 1: It still might not be enough, and that they will
• 3:48
  Speaker 1: be dominant and the companies that are around it the
• 3:51
  Speaker 1: metas of the world. And I know everybody is like,
• 3:53
  Speaker 1: what about Meta? The Metas will be fine. Microsoft will
• 3:55
  Speaker 1: be fine, Apple will be fine. But there will be
• 3:58
  Speaker 1: some others that the rest of you. Here's a safeway
• 4:04
  Speaker 1: to put it right. If invidious sneezes, some companies will
• 4:08
  Speaker 1: have pneumonia.
• 4:08
  Speaker 2: Y'all will have COVID two point zero.
• 4:11
  Speaker 1: COVID twenty right, Like in that type of scenario, In
• 4:14
  Speaker 1: these type of markets, when all indicators are pointing to
• 4:18
  Speaker 1: all time highs and you look at the cytixus and
• 4:20
  Speaker 1: everybody keeps bringing up the dot com bubble, I don't
• 4:23
  Speaker 1: think a crash is imminent, but I will say the
• 4:27
  Speaker 1: valuations have gone up pretty substantially to a point where
• 4:32
  Speaker 1: it's like, all right, we need to take a deeper
• 4:34
  Speaker 1: look at it.
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  Speaker 4: But we'll see.
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  Speaker 1: I mean, we thought something like this could happen this year,
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  Speaker 1: right when we're talking about can earnings keep up to
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  Speaker 1: the valuations? It happened in twenty four, right, which is
• 4:45
  Speaker 1: why we were over twenty percent. It's happening here and
• 4:48
  Speaker 1: we're pacing toward another twenty percent year. We'll see what
• 4:52
  Speaker 1: happens in the first core of twenty six. And that's
• 4:55
  Speaker 1: why Wednesdays so important when you're talking about in video
• 4:58
  Speaker 1: You're not just talking about a You're talking about infrastructure,
• 5:01
  Speaker 1: you're talking about cloud, talking about a lot of different sectors.
• 5:05
  Speaker 1: What that future guidance looks like into Q one Q
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  Speaker 1: two of twenty twenty six will be very very important
• 5:12
  Speaker 1: to see how this next year is gonna go.
• 5:15
  Speaker 3: This reminds me of the first year shot to Kyrie.
• 5:18
  Speaker 3: He hit the shot of his step right cool. You
• 5:21
  Speaker 3: can only go into the game winning back so often.
• 5:24
  Speaker 3: So I think in video will do well in earnings.
• 5:27
  Speaker 3: But if the entire market is relying upon blockbuster earnings
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  Speaker 3: for one company for equal way to S and P
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  Speaker 3: funds to do well.
• 5:38
  Speaker 2: That's not good. Have we seen this before?
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  Speaker 3: Yep, twenty twenty two dot com era, we've seen this
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  Speaker 3: a couple of times, even the Max seven.
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  Speaker 4: Exactly because it feels like four years ago we were
• 5:55
  Speaker 4: just to Apple. I was he just took the words
• 5:58
  Speaker 4: right out of my mouth.
• 5:59
  Speaker 1: I was like, this is how we used to talk
• 6:00
  Speaker 1: about Apple, Like Apple fights for us, and we needed
• 6:03
  Speaker 1: to beat earnings and it's so dominant, we needed to
• 6:06
  Speaker 1: do that. And even if it's great, it's not great enough.
• 6:08
  Speaker 1: And now people talk rotation and it's just another Max
• 6:12
  Speaker 1: seven that's now rotated into that spot. Now it's in video.
• 6:15
  Speaker 1: And even when when when TiAl says that he's selling
• 6:17
  Speaker 1: out his positions, he didn't just leave the Max seven out.
• 6:21
  Speaker 1: He said, we're gonna parking in to other Max sevens. Yeah,
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  Speaker 1: you know what I mean. And so it's just interesting
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  Speaker 1: to see.
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  Speaker 4: I think it.
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  Speaker 1: Like I said, I think we both are in agree
• 6:30
  Speaker 1: and stand in the video is going to have a
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  Speaker 1: great quarter, and Dentss kind of got ahead of it,
• 6:33
  Speaker 1: hasn't he Right, He said, look, we're talking about we're
• 6:36
  Speaker 1: talking about five hundred billion.
• 6:39
  Speaker 4: This is these are not numbers to sneeze that.
• 6:41
  Speaker 3: He wanted to say, I'm not there, Like, yo, don't
• 6:45
  Speaker 3: don't get this, don't put.
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  Speaker 1: The category as other little crim Yeah, we are not
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  Speaker 1: the same.
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  Speaker 4: Five hundred billion is is different.
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  Speaker 1: That's more than the market cap of market cap of
• 6:55
  Speaker 1: the I think everything outside of the top thirty companies in.
• 6:58
  Speaker 4: The world, this is not the same.
• 7:01
  Speaker 3: We got to have an honest conversation though, like there
• 7:04
  Speaker 3: shouldn't be this much in videos.
• 7:06
  Speaker 2: My pick my baby, I love it.
• 7:09
  Speaker 3: The entire US economy and stock market cannot be relying
• 7:12
  Speaker 3: upon one company to deliver blockbuster returns to move up
• 7:16
  Speaker 3: the GDP and defeat China. There was Apple four years ago,
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  Speaker 3: and even that stress didn't allow Tim Cook to create
• 7:27
  Speaker 3: what he needed to create fast enough because he had
• 7:30
  Speaker 3: to wait the world on the shoulders. Mistakes get made
• 7:33
  Speaker 3: when not only are you leading HQ looking over product line,
• 7:39
  Speaker 3: but then you have the president saying, hey, I really
• 7:41
  Speaker 3: need you to hit a home run right now for me.
• 7:44
  Speaker 2: It's too much pressure.
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  Speaker 4: Can they deliver?
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  Speaker 1: I mean, would you rather have any other company be
• 7:50
  Speaker 1: in this position? I feel like this is a company
• 7:54
  Speaker 1: that if there was one that was primed to be
• 7:56
  Speaker 1: in this position, this is it. The fact that they're
• 7:58
  Speaker 1: doing this and they don't have China right like, they
• 8:01
  Speaker 1: don't have that market, which would be part of this.
• 8:04
  Speaker 1: We'll see a full year of Blackwell coming up. Yeah,
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  Speaker 1: we understand the dominance. We watched all the other hyperscalers
• 8:11
  Speaker 1: and the Max seven's report before them, which is very
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  Speaker 1: strategic on their part. I looked at the numbers, bro
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  Speaker 1: everybody's cappecs did not go down. Everybody's CAPEX went up,
• 8:22
  Speaker 1: which talks about the demand and we know where they're shopping.
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  Speaker 4: And so if there was going to be a company
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  Speaker 4: it would be this one and video.
• 8:30
  Speaker 3: Will be fine, Metal will be fine, Microsoft will be fine,
• 8:35
  Speaker 3: Google Dynasty of an ecosystem, votrying right build community. But
• 8:43
  Speaker 3: the rest of the market, I'm like, even if we
• 8:46
  Speaker 3: look at quantum and this is not my moment to say, hey,
• 8:49
  Speaker 3: to beat up on these stocks. R QQ is down
• 8:51
  Speaker 3: forty three percent, IONQ is down thirty nine percent, QMCD
• 8:56
  Speaker 3: is down forty percent, RGTI is down forty six percent.
• 9:01
  Speaker 3: I'm looking at the rest of the market start to
• 9:03
  Speaker 3: pull back twenty to twenty five percent for some quality companies.
• 9:08
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