Latest Revolutionary Ratings, UBER/HOOD Earnings, Best Dividend Stocks, And Much More

And here is the recording of the call from this Monday.

Q. Often times individual stocks get hammered and the recovery looks like a V-shaped recovery.

Case in point Meta (META). On October 22nd, Meta went down to about $89, then immediately after back to $470+. How does this happen? What are the market mechanics behind this? Apologies if my question is not clear.

A. It’s a good question with a complicated answer. People who want to buy a stock need someone to sell it to them and vice versa. Sometimes there are no sellers so even just a little bit of buying power can move a stock higher (and vice versa). Most of the time, humanity prefers to buy a stock that is going up (thus paying more for it) and to sell a stock when it’s going down (thus getting less for it). Markets and price setting are complicated.

Q. Can you provide a guide on how you buy and sell “forever” stocks? Take Meta (META), for example, it had a huge run-up and I feel it can go higher. However, I am thinking of taking a little profit, but I also don’t want to have fewer shares if it does go higher. My thought is to sell a bit and buy back if it goes lower, but then my average cost goes much higher. Any guidance?

A. Yes, there’s also the problem of having to pay taxes when you trim a big winner. I tend to sell about 5-10% of my biggest winners every few years when they move 5x or 10x higher. But I hold most of the positions steady…pretty much forever.

Q. Can you please provide the latest ratings on all of our positions?

A. Let’s give it a shot: Autodesk (ADSK) 8-/10, Apple (AAPL) 7-/10, Amazon (AMZN) 7-/10, Bitcoin (IBIT) 8/10, DallasNews Corp. (DALN) 7-/10, Disney (DIS) 7+/10, Google (GOOG) 7+/10, Intel Corp. (INTC) 7/10, Robinhood Markets (HOOD) 8/10, Intuitive Machines (LUNR) 6+/10, Meta (META) 8/10, Cloudflare (NET) 7+/10, Netflix (NFLX) 8-/10, Nvidia (NVDA) 7+/10, STMicroelectronics (STM) 8-/10, Rockwell Automation (ROK) 7+/10, Rocket Lab (RKLB) 7+/10, SolarEdge (SEDG) 7-/10, Tesla (TSLA) 9-/10, Tencent (TCEHY) 8/10, Taiwan Semiconductor (TSM) 7-/10, Unity Software (U) 7+/10, and Uber Technologies (UBER) 7+/10.

Q. The rankings indicate some bullishness to me (lots of 7’s and 8’s and even a 9). Is this accurate? And, along those lines, what would you trim right now and perhaps buy right now?

A. I’ve been saying for months as this market has run higher that I STILL love my long positions even as I’ve turned increasingly cautious on the overall market lately. I wouldn’t call me terribly bullish but I’m not terribly bearish either. Easy does it most of the time.

Q. What would you trim right now and perhaps buy right now?

A. Favorite trims right now: Apple (AAPL), Amazon (AMZN), maybe some Netflix (NFLX) and Uber (UBER). Favorite nibbles right now: Tesla (TSLA), STMicroelectronics (STM), Rockwell Automation (ROK), maybe a little Bitcoin (IBIT), and Tencent (TCEHY).

Q. Feet to fire, where will Amazon (AMZN), Meta (META), Google (GOOG), and Uber (UBER) end 2024? Thanks for all you do!

A. Feet-to-fire guesses here for year-end prices: Amazon will be around $150. Google will be around $170. Uber will be around $85.

Q. Great call on Robinhood Markets (HOOD), it was my absolute biggest position going into earnings. Now what to do, what to do? What is your price target? Do I add more here for the FOMO (Fear Of Missing Out) follow thru for days hopefully? Talk to me, talk to me, lol. Also, hope all is well.

A. Thanks and I hope all is well for you too! I don’t do “price targets” per se, but I think HOOD could be a great long-term investment that could double or triple from here in the next year or two and if they keep executing and adding unique features to their app and website, it could end up being a Forever Position for us. That said, we trimmed a little bit of HOOD today out of discipline, as usual.

Q. Nice move on HOOD today! Can you please share your thoughts on this quarter, the path ahead, and its updated rating?

A. Great quarter, the company is delivering on its vision and strategy. They need to continue expanding their features, their geography, and building steadily as she goes. I’d rate it an 8/10 Revolution Rating right now.

Q. HOOD just can’t get through ~$13.5… been years of resistance. When it does at some point… look out!

A. Bryce pointed that $13.50 resistance level out to me this morning and I can see that on the chart even as a non-chartist.

Q. I just opened up Robinhood account and will transfer one or two of IRA into it so I get the 3% match. Is there ANY risk in this? I only ask because a company giving me thousands of dollars sounds too good to be true and must be a catch?

A. There is always some amount of risk when you give someone else your money; whether that be Robinhood, E*Trade, Schwab, or even Wells Fargo or Chase (remember 2008 — when nearly every major financial instituion went bankrupt — wasn’t that long ago and we even had more regional bank failures last year). That said, Robinhood has a pretty darn good balance sheet and is now GAAP profitable. It’s not “too good to be true” because Robinhood is deliberately trying to take market share from the major brokerages and get into the retirement business and they are doing that using special promotions like the 3% match. I know Bryce moved his IRA to Robinhood last year to get the 3% match.

Q. Can you please provide your thoughts on the Uber Technologies (UBER) share buyback program? The stock continues to rip higher. Are you trimming on this news or sitting tight?

A. Uber’s gotten to be a pretty big position for me personally and has gotten to be the hedge fund’s second-largest position after this huge run it’s had over the last couple of years. Recall when Bryce and I were pounding the table on UBER last year, it had a $60 billion market cap. Now it’s a $150 billion market cap. We didn’t sell any UBER outright today but in the hedge fund, we did short a small amount of some slightly-in-the-money call options dated out to May.

Q. Which is a better investment AND compare Taiwan Semiconductor (TSM) with Intel Corporation (INTC), thanks. TWC4Life! LIVE A LONG TIME MORE!

A. I’ve been wrong to have never gotten on board with Advanced Micro Devices (AMD). That said, I still think TSM and INTC are better positioned and better investments.

Q. What’s going on with the space stocks? Intuitive Machines (LUNR) had a huge move and Rocket Lab (RKLB) has seen some positive movement over the last few days. I know these are small caps but is there anything else driving this? Is the space economy getting traction?

A. Yeah, it sure “feels” like the market has been warming up to the space stocks lately. Then again, a lot of small-cap stocks have been on fire lately. We’ve sold down more than half of our LUNR after it more than doubled in a month since we bought it as our playbook played out perfectly — we expected LUNR to rally hugely into the lunar launch that they are planning to do tomorrow and that the stock would probably cool off/sell off after the event.

Q. Thoughts on former dot-com darling Akamai Technologies (AKAM) post earnings?

A. It’s a pretty cheap stock, a pretty good company, recurring revenue streams. But Cloudflare (NET) is the one I’d rather own.

Q. I was lucky enough to buy Super Micro Computer Inc (SMCI) a month ago. I sold half my shares for almost 100% gain thinking I was a genius, only to see it basically double again. Playing with house money now, but how nervous should I be about them long term? Not sure if the MOAT is there but if I sell now I pay huge 50% tax bill.

A. I’m disappointed in myself for not having had us in SMCI last year when The AI Revolution started kicking off with gusto. It’s a company in the right spot at the right time. That said, the margins are low because it really isn’t terribly proprietary. I don’t have an easy answer for you. If you think it could be a “Forever Position” for you, I’d probably hold onto it.

Q. What are your thoughts on DallasNews Corporation (DALN) ? is this a hold or sale?

A. We’ve gotten 8% worth of dividends since we bought this stock a few months ago and will get a 4% dividend every quarter for holding it. But as noted a few weeks ago, we’ve been slowly peeling out of this name. It’s cheap and probably not a bad hold for the dividend but the company was not welcoming to us as activist investors.

Q. Probably one of the most boring questions ever, but do you have any dividend stocks that are appealing to you at the moment?

A. The aforementioned DallasNews Corp. (DALN) isn’t a bad dividend stock here with a 17% dividend yield from these levels. Maybe Pfizer (PFE). Maybe some Verizon (VZ). Even some commercial real estate with SL Green Corp (SLG). Not many higher dividend stocks out there right now that I like though.

Q. Not necessarily revolution stocks, but to diversify away from potential “frothy” tech, I was looking at some of the beaten-down drug makers like Pfizer (PFE) and Bristol-Myers Squibb Co (BMY). Both are near 52 W lows, pay a strong dividend. Good place to collect divs and let the stocks rise over time? I know you owned and sold PFE recently.

A. I can think of worse ideas than PFE and BMY. But they’re not exactly Revolutionary, as you stated.

Q. Never bought Lululemon Athletica Inc (LULU) years ago because why would I buy stock in women’s tights even though my daughters, who have no money, would spend it all at the Lululemon stores? My daughters are now telling me all the girls wear On Holding AG (ONON) sneakers and getting into the clothing. Don’t think a clothing/shoe company is “revolutionary” but read they also have some proprietary tech for their products. Thoughts?

A. I’m wearing one of my two pairs of On Cloud shoes right now and I do like them. That said, my lower back has been hurting me lately and it might coincide with when I started wearing these shoes about a month ago. I’m planning to stop wearing them for a week and see if my back improves. After I bought these shoes, I looked briefly at the ONON stock and just sorta’ ended up where you are — not exactly Revolutionary even though it’s a good company with a good product that people are passionate about.

Q. I saw you had puts on Carvana (CVNA). I wonder how its earnings report will look? I saw where prices and sales were down on used cars. Who would be buying this one?

A. I think the Garcia father and son who run this company are totally shady and are bad dudes. That doesn’t mean the stock will crash tomorrow. They can keep this charade going for a long time. But yes, used car prices and sales are slowing and probably are not strong for Carvana either.

Q. Have you guys kicked the tires at all on Lithium extraction tech company EnergyX? Supposedly they can extract 300% more Lithium than current methods. Investors can currently invest as little as $1k for $9 shares on their website.

A. We are not terribly bullish on the lithium sector because it’s just so commoditized and has such low barriers to entry. This EnergyX company’s website set off all my spider senses and not in a good way. I’d never heard of it until you just asked this question but it looks very questionable. For example, they are using a Reg A+ exemption to sell shares to the public in lieu of an IPO, which seems a bit shady to me. This one’s not for me.

Q. What would you rate bitcoin (BTC) right now? Feet to fire do you see more of a run up towards the halving or is the run up over extended?

A. I’d rate Bitcoin about an 8/10 right now. I could see Bitcoin running to about $60-$70,000 before the halving and then probably selling out 10-20% after the halving and then resuming a slow upward trend towards $100,000 sometime next year.

Q. Does it make sense to hold both iShares Bitcoin ETF (IBIT) and ProShares Bitcoin Strategy ETF (BITO)? The daily percentage movements seem to be pretty close and the monthly dividend on BITO has been pretty good and hard to walk away from.

A. BITO usually sells off a bit after the dividend. We’ve sold all the BITO out of the hedge fund and only own IBIT now. In my personal account, I just own bitcoin.

Q. It has been a long time since you’ve covered this. Thoughts on the Helium (HNT) cryptocurrency? Still holding?

A. Yes, HNT has made a huge run higher over the last year and I still own some personally and some in the hedge fund. I even have a few helium miner devices that I turned off a few months ago that I need to plug back in and turn on.

Q. Love the Cody vs. CodyGPT stuff. Great idea. Do you think Carbon Cody consciously stepped up his game on his answers so as not to be upstaged by Silicon Cody? My thought is that the workforce will be forced to perform at higher levels to compete with AI which would add to AI’s productivity benefits geometrically.

A. This is a great point! Yes, people, especially those who do mundane tasks, are going to have to step up their game to compete with AI bots replacing them. Humankind productivity will probably go through the roof over the next ten years with AI driving gains and making people try harder to be productive/effective in their jobs.

Thank you all for the kind words and interesting questions. I leave you all with a picture of my daughter, Lyncoln, joining me on stage for a “Twist and Shout” as I played a two hour set at the local pizza joint last Friday night.