A Wide-Ranging Stocks, Cryptos, Economies Q&A Transcript
Cody:
Hello everybody. And welcome to a special well edition of The Trading With Cody weekly, Zoom weekly chat, this one being a Zoom version. We do this occasionally. Look let’s just discuss the broader markets as we always we do at the beginning. Clearly, the market’s going to be down this morning with Amazon disappointing the earnings report last night, missed a little bit on the top line guidance lower for next quarter. Look, long term Amazon is Amazon and we’ve owned it forever and I’m not going to freak out and sell it or anything, but yeah, that stock’s not cheap. Just as most stocks in the stock market, these days are not cheap.
Cody:
You can look at JP Morgan, you can look at Pfizer, you can look at Apple, they are all trading at historically high PE ratios price to sales ratios. And clearly the earnings estimates for most companies has been, have been too low. And so estimates have to come up trying. And when estimates come up that makes the stock cheaper on a valuation basis, but it’s a lot to catch up valuations to catch up to. Apple’s at 35 times or 30 times next year’s earnings. And I mean, and when Apple was $100 billion company, 1500% ago, the company what is that actually? Apple’s over 2 trillion now, right? So it’s a 2000% ago. It was trading at like a 15 PE. A 12 PE and 18 PE not 30. So I’m always looking for new names and digging into a new ideas and new revolutionary sectors. I’m hard at work on the AI artificial intelligence revolution right now. But I’m struggling finding a company that I’m comfortable getting into at these valuations. We did buy a new name yesterday, Airbnb to start buying it. Long-term investment.
Cody:
As with most investments. I plan to own ABNB for many years to come. But be careful out there. Just the other day, I’m on a call with the, I mean, I’m having dinner with some family friends grilling some pizzas outside (it was delicious) and a 14 year old kid explained to me why a crypto, Shibu, we knew is a better crypto then Doge I guess. And giving me full opinion on what Bitcoin about to do. It’s going to 60,000 he thinks. Right quick. This is not a bullish anecdote. When every high school / college kid with any money, and this kid doesn’t have a lot of money. It’s a couple hundred bucks. So he turned 300 bucks into 600, which is great, very happy for him.
Cody:
And I did not discourage him, but I did tell him be careful because a lot of people in the crypto pool and 99% of the crypto’s out there right now, are probably going to zero. I’ve owned Bitcoin since 2013. I’m a big believer in the concept of cryptocurrency. But that doesn’t mean that I think every crypto is always a buy. Rather, I think the opposite. There are cryptos out there and right now there are thousands of crappy cryptos. So be careful. I saw a stat today said 25% of people in the United States bought a stock last year in the last year. And 13% of all people, bought crypto. That’s a huge number of new people flooding into crypto. Just be careful out there peeps. We might be on the other side of a bubble blowing bull market that’s recently had a blow off top, especially in the small cap tech spec, speculative sides, sectors of the market. Let’s open it up to questions.
Subscriber:
Surprised at your new pick ABNB, but it has dropped a lot since Cody mentioned it back in March.
Cody:
Yeah. When it first came public I mean, we were in the midst of the blow off top and Airbnb, what king public about $140 spiked $240, $220 maybe, and $230. Like most speculative things in the market not named FAANNG (Facebook, Amazon/Apple, Nvidia/Netflix and Google, clearly a lot of those stocks were actually at their all-time highs or near) — the speculative stuff is not. ABNB is still not terribly cheap, 11 times next year, sales 10 times next year sells, but it’s truly a revolutionary company. It’s got critical mass. I’ll write up the full analysis about it and we’ll get it out to you.
Subscriber:
Cody, please comment about robbers and hoodies going public high make all their money selling order flow to hedge funds.
Cody:
So look, I don’t think there’s anything inherently wrong with Robinhood’s business model of quote unquote, no commissions free trading with them making their money by telling people that what we are selling your order flow to Citadel and giant market makers who are going to skim pennies off every batched giant order. Just know you’re still paying for your trades. I mean, you’re not trading for free. But if you’re on Robinhood and your orders are being batched and they’re making money selling your orders, well, it’s not like nobody knows that. So disclosure, disclosure, disclosure, I suppose. That’s fine. Now on the other hand, Robinhood has done more to single handedly, bring this speculative retail fervor into the markets.
Cody:
Into both stocks and crypto. There’s what? 20 or 25 crypto’s on Robin. I don’t have a Robinhood account and I’ve been meaning to open one because I just want to try it out. So note to self open the Robinhood account. I use TD Ameritrade mostly for my personal stuff and I’m quite pleased with it. Anyway, the Robinhood valuation is not just questionable, even if this was a Robinhood would be a high valuation at this price, 38 bucks for a king public or $34 where it’s trading this morning, even if it weren’t full of excessive speculative fervor. I’m no bull on the stock Robinhood at this level. So be careful with Robinhood. Now, here’s a comment in here in the chat.
Cody:
He says it’s better open access to odd things, but lot lousy fills on regular stuff. I bet that’s true. So grabbed the mask there to wipe my forehead, speaking of which — look I wear a mask any time I’m indoors in a public space of any kind.I was wearing a mask throughout the last few months, even when CDC is like, “you don’t have to wear a mask anymore” because I have a daughter who has a trachea tube and is on oxygen and I’m not messing around. You guys know that. So I still wear a mask everywhere I go, and I will continue to do that to protect my daughter. I’m vaccinated, have been for months now, but never stopped trying to protect my daughter. I actually have N95 masks that I wear everywhere — but this just happened to be on my desk and I’m using to wipe my sweaty forehead.
Cody:
I have to get a Robinhood account, check it out. What’s interesting about Robinhood was that they enabled people to buy crypto and stocks and at no commission. I mean, it’s a revolutionary company in its own, right? Well, we gotta admit that clearly Robin Hood’s done some really neat things to build its business — allowing people to buy crypto and stocks in the same platform, making it like a video game to buy and sell stocks, and all the things that they’ve done. So your commissions batching the orders to make their money. And just wouldn’t touch it right now. All right.
Speaker 2:
What’s your view on Pinterest now?
Cody:
I like how you say it. Well, the problem was for user growth, didn’t happen and people with the economy opening back up people aren’t Pinteresting like they used to.
Speaker 2:
They still have room to grow?
Cody:
Yeah, I mean, look, as I mentioned, a couple of weeks ago, the path to monetization for Pinterest is so clear and they’ve joined with Shopify and they’re doing a bunch of stuff to make it even easier to monetize their already very monetized user-base. We bought Pinterest at the beginning of the pandemic at like 12 bucks, right. And at 70 we were trimming some and now at 58 to this morning, I’m sick to my stomach about it because I could have sold that one as one the stocks I sold during my recent Great Rest. Now that being said, you know where Pinterest was back then? I went and checked. Pinterest was during my great reset in February, March at 58 bucks at one point. And it’s at 58 bucks this morning. But still, I mean, I hate it when a stock gets hit like that, that.
Cody:
Longer term, the pandemic and the quasi probable reopening out of this pandemic are one-off things. We didn’t buy Pinterest because of the user growth explosion that happened going into the pandemic we bought because the business model makes sense and the stock was extremely cheap and it’s a revolutionary company that we could buy at a great valuation. We do that a lot when we buy stocks, that’s what we, what I do. That’s what I try to do all day everyday. Patiently wait for good pitches like that. But yeah, Pinterest long-term is fine. If you don’t own any, I might actually buy a little here this morning. And just patience.
Cody:
Our site gets a little slow sometimes during the chat sessions because our load balance, our server. I hate GoDaddy. I hate to use the word hate. I really dislike GoDaddy, but that’s where Trading With Cody is. And the server balance is used to very low traffic. Because we have a steady flow of people in the room, but not a whole bunch all at once. And then on chat days — boom — a whole bunch of people come in and the load balance gets messed up and GoDaddy has never done well with it.
Subscriber:
Cody, I love your Airbnb pick. I’m thinking about nibbling on a little Uber, but wondering if the Delta variant scare will push it down.
Cody:
I think if the Delta variant is going to push Uber down, it’s probably going to push down the broader market too. I don’t think Uber would be targeted more than most other non COVID plays. Pinterest might actually benefit clearly like we just mentioned it benefits when people go into lockdown or get scared and don’t go out. Because they sit around on their phone looking at Pinterest and dreaming of pools. I own Uber, I just recently started buying it and I nibbled a little recently again around 45 bucks here. I would like to buy some more here but I’ll get aggressive in buying Uber around 40. So I actually wouldn’t mind UBER getting hit and coming down towards 40 so that I could actually start getting a little more aggressive and building up that position. But yeah, UBER will be hurt if Delta impacts people’s activities and feed the fire. I think we’re starting to see that. I don’t know.
Cody:
We were already obviously being very careful, like I mentioned, at my house, but two or three weeks ago, these numbers started climbing again. You remember I went to New York six weeks ago, there was 6,000, 5,000, less than 10,000 daily for a week or two before I went to New York daily confirmed cases in the United States a month ago, five weeks ago when I went to New York, felt comfortable doing so. And this morning, this week it’s 50, 60, 70,000 daily confirmed cases. So the Delta variant is impacting real people’s health to the tune of hundreds of thousands or millions of people in this country already. And yeah, so we’ve got even more cautious at my house again. I mean, the last couple weeks we went really back down pretty serious on lockdown and sacrifice things to protect people that you love, whom you love.
Cody:
Cody will China approve or deny NVIDIA’s acquisition of arm. And how does that color your analysis of Nvidia? What’s the downside if there is no arm acquisition?
Cody:
I don’t think China’s got the power to stop it. They might I bitch, moan, complain. Maybe Europe could stop because ARM is based in Europe and maybe the U S could stop it if the Republican Democrat regime ever actually bothered enforcing any of its antitrust laws. But what are the odds of that happening? Obviously, about zero. So I think Nvidia is going to get that acquisition done. And I don’t know that at this point, I mean, what did they pay 30 billion or 40 billion off the top of my head for the arm acquisition and NVIDIA’s market cap is 500 billion. So it’s only a 10%, it’s less than 10% of NVIDIA’s current market cap is what they paid for arm. And I don’t think ARM’s meaning to that $500 billion market cap is more than $100 billion at most.
Cody:
I do think they stole ARM at $40 billion and AMR look, arm owns the patents and the concepts and the license for so many semiconductors. It gets paid for that when Apple or when anybody makes a chip, whether we’re talking Apple, Tesla, Avago. All of those guys are using ARM-based pro technologies and they pay now eventually Nvidia for that right. I love that business. And normally I don’t necessarily, pure licensing technology licensing patent plays, but when you’ve got the critical mass that Nvidia, that Arm Holdings does, yeah, I like it.
Subscriber:
When are all the green new deal, things going to start popping again, EV, solar, et cetera, or were they just a political season play?
Subscriber:
Yeah, I’m warned everybody when these stocks were popping because when the solar stocks and EV stocks were through the roof in February and March, and everybody’s like, “Hey, the green new deal is going to the Republican Democrat regime that is right now is controlled by the democratic guys. And so the oil carbon guys aren’t going to get as much welfare and the solar EV the quote, unquote “green” guys are going to get a whole lot more for corporate welfare. So let’s buy the ones that are going to get lots more and sell the others. Slow down. In the grand scheme of things, I don’t try to gain government largess movements. Meanwhile, solar is great. I’ve owned solar for many years and I’m not going to sell my solar edge, my favorite solar stock. But I don’t expect them to pop anytime soon.
Cody:
Again like, that was a bubbl. We’re on the other side of blow off top of specifically that green bubble. And I would be very cautious about green stocks here. I’m short some of them in the hedge fund. I’m short some of the non Tesla, EV stocks — electric vehicle stocks, not named Tesla. I own puts on some of those. And it’s been knock on a wood thus far because they were way over valued. And even though many of them have come down hard, they’re still ridiculous. I mean, what you should think about is something like this. CCIV just became LCID. Market cap on LCID as I speak is $40 billion all in — just under 40 billion with a B, dollars. Now, when I bought Tesla and made it my biggest position, both personally in the hedge fund two years ago, at $50 a share, they had $20 billion in revenue and the market cap was $30 billion. LCID is worth $10 billion more, 30% more than Tesla was back then even though LCID is without a single car being sold yet without any factories up and building cars yet. LCID is worth $10 billion more than Tesla was when it truly had factories and three different models in production being sold. What?! What?!
Cody:
Or Fisker Motors, what’s Fisker, FSR. Another post SPAC crash here still worth a market caps of 5 billion with a B $5 billion. And look, Lucid’s, at least got a car that’s gonna, that will get produced. I mean, I think it’s wildly overvalued and it’s way too risky. And I don’t think it’s actually going to end up working out because building and creating a car company from scratch is hard enough when you do it like Tesla did before anyone else was. But now with the crowded electric vehicle place with Mercedes and Volkswagen and Ford and GM and Fisker and Rivian and Tesla and everybody, like most of these companies are not going to get to cashflow positive places.
Cody:
So I just, I would run for the hills on most of these stocks. Specifically, solar stocks are bubbled. Valuations are crazy solar edge itself. I mean, I went and I even bought some during the crash and the hedge fund a few days ago covered some of my solar hedges in there, but grand scheme of things — no I don’t think EVs ready to pop market’s opening markets are opening.
Subscriber:
Is AMD going to the moon? Once it completes the Xilinx acquisition, totally additive revenue and profit? I don’t think so. Again, valuations are already way stretched. Let’s just do, let’s run through evaluation, work on AMD. And we bought AMD at 55 and sold it at 80, I think just because I got uncomfortable with the valuation as I was going through my great reset and wanting to clear out the mind and the portfolio some. I took out about not quite a third of our positions, maybe about 25% of our positions. And what March clear in my head and AMD was one of them now at 101, $123 billion market cap company is going to do $17 billion in sales next year.
Cody:
That would be a 15% growth rate over this years, $14 billion, $15 billion revenue, which would be 50% growth over last year’s COVID impacted revenue. So five times sales for a company with gross margins that are 45%ish. I’m looking at here, $13.3 billion in revenue trailing 12 months at $7.7 billion cost of revenue so about 40 percentage gross margins. But five times sales for a 40% gross margins company is not cheap. It’s not wild, but ain’t cheap. Okay. Then the company is going to earn two bucks this year and $2.70 next year. Call it $2.20 Year, $2.70 next year for the estimates. So 101 divided by 2.70, 23 PE for stock for revenue growth of 15% next year.
Cody:
It’s not the worst valuation I looked at this week, but again, it’s just not a screaming buyer or anything. And you’ve got to make a lot of assumptions to think it’s going to go to the moon, going to the moon. I’m assuming you’re thinking as a two or three bagger from here. I mean, that’s in my mind know, going to the moon to two, three per a hundred percent or something in the short term. I mean, going to Mars or going to the sun is what I like to do. Buy an apple at 20 cents, baby. Bitcoin at $100. Let’s go for the 100 baggers.
Subscriber:
Thoughts on nibbling some Jumia here, Jumia. It’s almost back to where we first originally bought it yet.
Cody:
We bought Jumia at like 14 and it immediately went to 70 and we trend the whole way up. And now it’s back to 21/22 this morning. It’s just a book. Yeah, I don’t see any reason not to middle a little Jumias. Again, speculative. But long-term, this is a company that I think could really impact if Africa’s economy.
Subscriber:
I know those are no longer in the portfolio. I know these two are no longer in the portfolio, but are you still monitoring Unity and Coinbase?
Cody:
Yes, of course I am. And Unity is, again, the evaluation was just too stretched. It’s like 40 times sales or something. Great company though. I would love to buy it at 60, 50. Look, the problem with Coinbase is twofold: Robinhood ain’t making their customers pay much for their commissions buying cryptos, and you can get like 25 different cryptos over there, and most people don’t really need to be able to buy more than 25 cryptos. You can buy in most of your major cryptos for, with no commissions or minimal almost nil commissions at Robinhood versus Coinbase charging you 2, 3, 4, 10% sometimes to buy Bitcoin. Then the second problem with Coinbase that I mentioned last time is that Coinbase has gives you access to hundreds, or I don’t even know how many cryptos can you buy on Coinbase? A lot. And most of it is crap, most of those cryptos that you can buy on Coinbase are probably going to zero. So that’s not going to help Coinbase’s business, offering people access to stuff. That’s no good, no bueno. So, no, I might even rather short the Coinbase than buy the Coinbase.
Cody:
Too many tabs open. Anybody else at the addiction of tab? Can’t stop. Cannot stop. Can’t close them. Might need to use that tab again someday. Addicted.
Subscriber:
Cody, what is your exit point on Ten Cent and MCHI.
Subscriber:
We snuck in and bought 10 cent and MCHI and Baidu Monday morning or Monday mid day when things were just as crashed as they knew how to get in the China stocks.
Cody:
And everybody on TV was saying, you got to sell. Saying that you cannot hold Chinese stocks. And like, we didn’t own any Chinese stocks, but JD which we bought it at 25 and it ran to 100 and now it’s at 62. And when we started buying it earlier this week again, it was down 40% even 45% or something from the highs. And we snuck in a, bought a little, same thing with like 10 Cent. I never owned TenCent until Monday morning when I snuck in and bought it during that crash at $55 bucks. It’s now 62.
Cody:
Well, like I might trim a little actually. We’ve got a 10, 50% gain, two days, three days, four days. So you could trim a little on any of them. I mean, JD was up 25% from where we bought it the other day. Yeah. It like 62. It’s at 72. You can trim a little on any of them. TenCent is a great company and I’ve owned on JD for a long time. Anyway, when I bought it at 25. So I’ll plan to hold the JD and TenCent. I might hold it for a little while. MCHI is an ETF and it, I’ll take the trade on that one at some point soon or in the next few weeks or something.
Cody:
Well, already I can’t find the tab. I was just on. Unbelievable. I might need to go to treatment for my tabdiction starting to impact my life. Not that it happens more than about once a day that I’m confused trying to find a tab I want to go back to.
Subscriber:
Cody, do you like MRAC. Your friend, Gene Monster seems to be a huge fan of them.
Cody:
I have been meaning to reach out to Gene. I haven’t talked to him in months. You know what? We’re just going to email Gene right now. Thank you for reminder. I’ve been meaning to do that all week. He’s been on TV several times when I’ve walked
Cody:
I don’t know MRAC. Ah, it’s going to be a SPAC. I’ll have to do some work on MRAC to find out what they’re buying and all that.
Subscriber:
Can you revisit MTTR and let us know what you think about that company.
New Speaker:
Let’s look at MTTR. Matterport profile — company is a cloud-based platform for process. Oh yeah. We did some work on this — GHVI is what it used to be, right? It must’ve just closed. Yeah. I liked the company. I liked this. I liked the stock. I liked the company. Well, I like the company. Let’s do some work right now. Ooh, they don’t have MTTR analysis on the broad internet yet. I’ll have to go deeper to do some work on Matterport. I’ve actually got a document we started up on it. Actually. Let’s see if I can find it.
Cody:
GHVI, yeah. $4 billion market cap. Tell you what I’ll share this document. We started, we made months ago on GHVI with the chat room here. You guys can just take a look at what we did. And I haven’t written on anything on it. But when I read this report that my team put together for me full of headlines and company factoids and some valuation information on top of things. I was impressed. I like it. So we’ll do some more work on it and stay tuned. For if buy it, of course, I’ll send out a trade alert.
Subscriber:
Cody, what are your thoughts on Amazon? A core holding down 8% seems harsh.
Cody:
Do you add a tad? Yeah. As I mentioned in the opening commentary, I don’t know that I necessarily, I’m not adding, I’ve owned it for, I don’t know, in the hundreds of dollars the last time is when I bought it and I just own it since then. And the hedge fund, I own it a little higher price because I launched a hedge fund three years ago at like 1500 bucks or some guy I don’t know where it wants, but I’m mostly sitting tight on the Amazon. It’s a long-term core holding, like you said.
Subscriber:
Any thoughts on MP? When you first mentioned it, I bought a bunch. So I was just wondering how you stay posted to what’s happening with it . And your thoughts about it.
Cody:
Sure. Look, I mean, I just follow the news and read everything I get my hands on about every stock I own and / or am thinking about owning. I do this all day, right? Most of you people sitting around reading this transcript have other jobs. Like, this is something you do in your spare time or at night, or when you get a break in your day or you get curious about something or you hear some news and you want to go research something. So you go do it over the weekend or something. Well, I do that too, but I actually also spend probably 60, 70 hours a week just reading, looking, staying up on them markets and my stocks and the things I’m interested in.
Cody:
And obviously I still miss stuff. So I do the best I can by consuming everything I can about markets and economies and stocks themselves. Economic stuff drives me bonkers most of the time. I’ve talked about this before. If it’s political, the economics will have a political bend to it, a partisan bend to it. An ulterior motive in everything you’re reading. The TV news and newspapers themselves typically have some sort of a bias — Republican or Democrat, whatever. And so economics is a strange, strange concept. Saying up on stocks is easier than staying up on economics. Let’s put it that way. There’s certainly a lot of propaganda and fake stuff that is still legal in the stock market when you’re analyzing stocks, but if it gets too far out there it’s illegal. Like you can’t just lie. Economists can go on TV and lie to you.
Cody:
So MP announced like they’re going to have earnings next week. Like MPs got a little bit of the Chamath taint to it now. And Chamath Palypatalya is the one who brought MP thing out and he brought Clover and some other crappy stuff out. And he obviously also brought Virgin Galactic. He was the original SPACer. We own Virgin Galactic and MP despite his involvement. For MP, it’s clear that we are going to need a lot of rare earth stuff for batteries, for solar, for cars, for computers, iPads, TVs, et cetera. It’s also clear that China has a monopoly on a lot of those rare earth minerals right now that from a political standpoint cannot stand from an economic standpoint, it’s unacceptable. And from a microeconomic standpoint, this is the company that can address it.
Cody:
It is the only company in the United States that is exclusively focused on doing this. And it’s got this giant mine in California that it’s reopening and cranking on. There’s still risk in this company because margins in rare earth mining can be very hard to come by. And I don’t know, the management team could be better. Their financial guys and I wish they were operations guys, but they’ve got operations guys obviously in the company and they are clearly mining stuff and getting the operations going and we’ll learn more as the business as they report earnings next week. And that report itself isn’t the most important, but over the next year, we’ll need to see a clear trend of growing revenues, growing margins and operations at the mines, commencing in a positive growth way growing way. Thanks for the question.
Subscriber:
Thoughts on Fastly? Twitter and shop use it.
Cody:
Man, I owned a little bit of puts on Fastly when it just screamed. It was at 109 and now down to 50. Let’s look a little bit at the valuation. I do not, I have not liked Fastly. I feel like it’s a, I’d rather own Amazon for Amazon web services or Google or even what’s strange about the bubble right now is how similar many ways it is to the two thousand.com bubble. I mean, if anybody remembers Akamai eight, let’s look at a chart on AKAM pull up a max chart on AKAM.
Cody:
You will notice the blip at the very top that it traded originally at $330 in the year 2000. And it’s in the content delivery business. They were out there putting servers and routers all over the world at telecom point-of-presences all around the world and trying to make delivery of streaming stock quotes faster. And Fastly is sort of the same thing. It’s just for apps basically, but it’s just trying to make them get out stream faster. So I don’t like Fastly’s business per se. And I wonder if someday it’s chart will look a lot like 20 years from now, 22 years ago, Akamai was at $330 and today it’s at 121 years later, it’s still down 70% and now that’s actually fairly valued. I mean, Akamai’s not a bad stock. I wouldn’t buy it, but trades it like some reasonable valuations. And I wonder if we’ll look back in not 20 years, but in five years and Fastly still around 100 bucks or something. So, no, I don’t terribly like Fastly.
Subscriber:
DKNG?
Cody:
No thank you. Just gambling, I just don’t really like that business. Let’s look at DKNG DraftKings though because it’s interesting because it is has established itself with the brand awareness. But what’s its real competitive edge? How does it reach critical mass and stay there? The company is far from profitable and trades at 20 times this year sales estimates more than 10 times next year sales estimates. So what do the margins look like? 50% gross margins, not terrible. But unprofitable trading at 20 times this year’s revenues at 50% gross margins does not sound attractive to me.
Subscriber:
Hey, Cody, quick question on a stock you’ve mentioned before — KOPN on virtual reality? Once when you were talking about the virtual reality Facebook, you said that was one of the only pure plays in that space.
Cody:
I think it’s a crappy company. I’d stick with Facebook for your virtual reality bet.
Subscriber:
Cody, thoughts on the successful launch earlier this week for rocket lab?
Cody:
I love rocket lab. I just, it, the valuation’s not great there either. I’d love to buy it at $6 or 7 — I’d make it a huge position at $6. At $10, it’s fine. It’s my favorite space play that’s publicly traded and we can get in i. But we might get the chance to buy it lower, feet to fire.
Subscriber:
How will Tesla trade in the coming months?
Cody:
Range-bound, I think. Tesla is going to be stuck around here. I don’t think Tesla can get back above $900 in the next year, unless it gets autonomy solved. For the next two years. And I don’t think they’ll get FSD solved. I don’t think they’ll have autonomous vehicles by the end of next year. I don’t think I’ll be able to summon my Tesla from the place where it had its windows tinted yesterday still next year. Which would have been cool if I could have just summoned it when the guy was done and have the car back to my office. Until that happens Tesla’s price target could be $900. 900 bucks sounds like a price target for the next year or two could sort of stick around 600, 700 for a while. If and when they get autonomy solved, the price target goes up by a factor of five or so.
Subscriber:
Still kicking around the idea of Didi?
Cody:
I did a bunch of work on DD and I almost pulled the trigger on Monday when we bought those other stocks. Oh, I wanted to buy it. I just, I think the thing that kept me out of it was the way my friend, Matt Mastrangelo talked about it on the day Didi came out and he told me, “Look, I’m not interested in buying a company that just completely flipped off the communist Chinese government.” That might not be the way he phrased it. I’m paraphrasing. But the Chinese government did not want Didi to come public when they did. And Didi was like, “We’re doing it anyway. And I don’t think you want to get in a pissing match against the guys who run Muslim camps in China. I mean the guys who just took over Hong Kong. No, wait, I mean the guys who are threatening Taiwan. No, I need to say something nice, right? Isn’t that what we have to do? Anyway, I just am too worried about Didi’s political positioning. I couldn’t couldn’t overcome it. Couldn’t overcome it. I think it’s a great company. It’s got critical mass, but when China’s like, you can’t, no one can download your app anymore, I’m going to quote my daughter wouandld say, “Bizzle, Bizzle, what are you doing?”
Cody:
I think we’ll wrap it up with that. Bizzle, bizzle, what are you doing? All right. I’ll tell a story real quick. I have one more story. I’m just going to tell it, cause I don’t want to write about it.
Cody:
You can Google it if you want. I did a video chat. I didn’t know it was going to be a video chat. I though I was just getting on a conference call to debate a crypto called Hex that one of my TradingWithCody subscribers likes and I think looks like it’s silly and is going to zero. But he had made a bunch of money on it and asked me to take another look at it. So I did, I went back and looked at it again.
Cody:
I still was like, dude, the guy who created this used to do like life longevity, pyramid scheme videos. And now he’s like, what a crypto genius? Like, and so anyway, I got in this video and I did this whole debate. But before I did it, I was listening to a podcast as I was driving to my eye appointment. See, I did the video interview thing from outside the doctor’s office in my wife’s car (by the way, she got the new Lincoln Aviator and loves it. It’s got massage seats and everything was great when I drove it back and forth to Albuquerque). Point is, I listened to this podcast. I was struck by the didactic approach that the person took.
Cody:
And the first one was like “cryptocurrency savior of the world or harbinger of death” or something like that. And I started listening to this thing and it was this lady talking about crypto and explaining to everyone how crypto is going to save the world and change everything. And like, that’s why I bought Bitcoin eight years ago. I’m not, I’m okay with that. But then she started explaining that when the great reset happens — her term — they were the Bitcoin or some crypto is going to replace the US dollar. And when that happens, all mortgage debt will be wiped out because all banks are lending money illegally.
Cody:
I’m not even sure what illegally means in this sense. But that’s not how it works. That is not how it works. Like Bitcoin and cryptocurrency doesn’t change how money works. Money still is money. People have some, and we’ll lend it or invest it or spend it or save it. Doesn’t matter what form it is. And if you lend somebody money or if someone lends you money, it has to be paid back or it’s a loss. So what was crazy too, like the lady was talking about at one point she was like, some cryptos are evil and some are virtuous. The evil one for example is I don’t remember whether it was ripple or stellar, but ripple or stellar, why one was going to be, it was like, but I wasn’t sure what she was saying yet.
Cody:
And then she was like, see Bill Gates is involved with, I don’t know which one it was ripple or stellar. And you know that because Bill Gates is involved with the world economic for and the world economic for approved stellar as a something. My first thought, when she mentioned Bill Gates was that I better go to take another look at whatever crypto Bill Gates is involved in because he could legitimize it. And then she was like, “we all know the evil Mr. Gates duh tah duh tah duh.” I’m like, wait, I don’t like Mr. Gates. I’m not going to defend Bill Gates. But I’m like, Bill Gates is not out there plotting how to take over your body and your life and your world or whatever everyone’s really worried about. Like, he was an evil genius at the head of Microsoft, squashing all of his competitors, probably in illegal ways that the government never really cracked down on until they pretended that they did. And obviously Microsoft was fine, still worth $2 trillion now. So like, I’m not going to pretend that Bill Gates is some Saint, but my God, — like, he’s evil? Evil? Really?
Cody:
So the other thought I wanted to mention was at one point, the guy who created this crypto actually got on. Because we were on a YouTube streaming thing apparently. And so he got on and he started trying to explain his scheme to me. And I thought it sounded silly still, and eventually he was like, “Dude, what about stocks? I mean, everything’s going to go straight up. You have to be in cryptos or stocks because the government’s printing money. And as long as printing, government’s printing trillions dollars, everything’s going to go up to the right forever.” And I was like I don’t think that’s how it has to go. Far from it.
New Speaker:
My Great Reset got me worried. My latest analysis. I’m concerned that we’re in a bubble that’s popped. And I just thought it was funny that some guy who was like launched a crypto is now a stock market genius too and is teaching me about the way the economy impacts asset prices or whatever he was trying to explain. And it’s just insane that I have spent my entire life and career analyzing the stuff and laying out picks and analysis for you guys. And truly whether it’s the 14 year old kid explaining the crypto action to me or the crypto guy explaining the stock market action, to me, I’m like, it’s pretty wild. How everybody has gotten so pompous, so didactic, so holier than thou, so righteous, so confident in their predictions. And it’s indicative of where we are and how everyone’s in the pool.
Cody:
And why I think you gotta be cautious, especially in cryptos. Be careful out there in cryptos. If it ain’t called Bitcoin or Ethereum, or maybe one of the other two or three or top 10 cryptos out there or maybe a few others like Helium, HNT that are not a top 10 cryptos, you better beware. It’s not like all cryptos are but there is a lot of crap out there. There’s a lot of fraud out there. There are hundreds of fraudulent stocks out there that came public in the last year or two. There are hundreds of publicly traded stocks that have been public for five or 10 or 15 years that are out there. There’s 11 or 12,000 cryptos in existence right now. Most of them are crap and thousands of them are fraud. Word. Peace, love, and happiness. Everybody. Please be careful to protect your money. It’s not just about making money. It’s also protecting it. Thank you.
