Join professional money manager Bill Gunderson in this episode of the Best Stocks Now show as he dives into the latest market movements following the recent Fed decision. With insights from chartered financial analyst Barry Kite, the discussion provides an overview of how tech giants like Tesla and NVIDIA are performing amidst market volatility. From Bitcoin surges to the impact of Europe’s interest rate cuts, Bill wraps the latest economic indicators affecting the market. He takes us through the strategic implications of past sell-offs and the potential opportunities they present for astute investors, offering a seasoned perspective on navigating
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, thestreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 05 :
And welcome to the Thursday edition of the Best Docs Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based only firm. And I’m here with Barry Kite, our chartered financial analyst. And the day after the Fed decision and the many earnings reports after the close tomorrow, We have at least a green day so far. Not big, but some stocks doing better than others. The Dow right now is up 83 points, IBM helping the Dow. The Dow is at 44,796, and it is running into that resistance level, that ceiling of around 45,000 once again. We’ll see if it can break on through to the other side or if it’s going to bump its head on that ceiling and back down like it did last time. The S&P is up 16 points. It’s also running into resistance here. It’s at 6,055. The NASDAQ is up just 16 points. Microsoft hurting the NASDAQ today. And ServiceNow also hurting the NASDAQ today. But Tesla and Meta giving a boost to the NASDAQ. The NASDAQ is at 19,644. Small caps are up 30 points, having a good day.
SPEAKER 06 :
Energy through the roof again as well.
SPEAKER 05 :
Yeah, the interest rate’s down a couple of basis points after a soft GDP report, which we’ll get to here in a minute. And our favorite commodity, our favorite asset class, Bitcoin right now, was at 104,000, 104,000, just a little over that. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson. Actually, Bitcoin is now up 3,819 to 106,091. And looking back on Monday’s deep seek sell-off, deep sell-off, probably the worst sell-off I’ve seen in tech so far. In the 25 years I’ve been in the business, except for those years back in 2020, 2000, that’s 25 years ago when the NASDAQ took a beating. Bitcoin at 106.091. Monday, if you’re looking back on that day.
SPEAKER 06 :
And the market’s bigger now. The market’s bigger now. I mean, you trimmed a trillion dollars off of the market, which most of that was likely would be in the tech world on that day. So it was a pretty brutal Monday.
SPEAKER 05 :
Well, I mean, looking back, that was a big buying opportunity. NVIDIA hasn’t done so well, but the nuke stocks are roaring back.
SPEAKER 06 :
Yeah, the other names around the story, that’s kind of what’s interesting when I look at it, and you’ve kind of hinted at it a couple of times in your notes where NVIDIA really hasn’t bounced back, but all the other names that were kind of affected and rattled that day have bounced back.
SPEAKER 05 :
Yeah, they’re bouncing back. It was a buying opportunity once again, and every sell-off in big tech in recent years has been a buying opportunity, but not for all stocks. It’s still on a stock-by-stock basis, but it was an interesting day. The market was on hold all day. I twiddled my thumbs until about 2 p.m. We got what we expected, I would say, from the Fed. No change. even though Europe lowered their interest rates today by a quarter of a point. They need to. They have sluggish growth. And Canada, I think, also lowered their interest rates, but not Jerome Powell. He’s still a little bit hawkish on inflation, despite rents going down. I guess it’s that bacon, the bacon factor, bacon and eggs factor that’s hitting the inflation equation. Yesterday, We kind of had a muted response, pretty much a down response to Powell’s press conference where he hinted at, you know, I don’t look for any rate cuts in the near future, even though he’s going to be pressured by Trump on that. And also he’s going to be pressured by other countries around the world. Cutting rates. Okay, we woke up to a tragedy. You never know what you’re going to wake up to. A commuter jet, American Airlines landing at RFK. Is it RFK Airport in Washington, D.C.? I think it was. RFK Senior. And crashing into the Potomac River, killing everybody on board. Hit by a Sikorsky Blackhawk helicopter. Very strange accident. It’s like… The Sikorsky either hit them on purpose or just never saw them. We had an accident like that in San Diego many years ago that I witnessed. We were driving on the freeway, my brother and I, when a small plane, a PSA jet, bigger than a commuter jet, hit that small flight training Cessna airplane. And man, that thing went straight down right into a neighborhood. That was probably in the early 90s, I’m going to say. So anyways, that’s not good news. Trump’s a little bit upset about it. It should have been avoided, and there will be a full investigation into that. Another thing that came out of Powell’s speech is something I’ve been saying for a long time. In fact, my first commentary on 2025 was how expensive the market was. especially given the fact that the NASDAQ has gone from a P.E. ratio of 20 to a P.E. ratio of 35 since we put out that buy signal, which we still have, by the way, on the NASDAQ. We put it out on January 6, 2023, after that pause in the NASDAQ. Powell said asset prices are elevated by many metrics, with a good part of that due to AI and tech, and he’s exactly right there. I publish that in the newsletter every week, the S&P 500. What are the four metrics that everybody looks at? Price to sales, price to earnings, price to forward earnings, price to cash flow, and to some extent, price to book value. And by any one of those measures, we’re at very, very high numbers. Now, we had a lot of earnings come in last night. Tonight, it’s going to be Apple and Intel, a couple of sluggish stocks. hoping to change their trajectories. I don’t give either one much hope, however, but we’ll see what comes in. Last night we had IBM, we had Tesla, we had Meta, we had Microsoft, we had ServiceNow, and we’re going to go into those earnings on every single one. I sent out an X message this morning. I’ve got to fit about three hours’ worth of news into one hour, Barry, today, so I’m highly caffeinated, so let’s not worry about that, okay? GDP growth, okay, that’s helping the bond market, and I think it’s helping the stock market because it cooled off to 2.3% in Q4, weaker than expected. And, you know, what the Fed is trying to avoid with the high interest rates is a slowing of the economy. And while that’s not a big slowing, it did miss the 2.4 number. But let’s compare our number, okay? 2.3% is what our annual growth should be. And I would expect that to rise under Trump.
SPEAKER 06 :
I think the new Treasury Secretary mentioned he’s targeting 3%.
SPEAKER 05 :
Okay, good. That’s best.
SPEAKER 06 :
Which is a healthy growth rate. Healthy growth rate, not too hot, not too cold.
SPEAKER 05 :
Now let’s look across the pond in Germany where it’s 0.2%, hardly anything. And France actually shrinks in Q4. So, you know, they still have their very, very sluggish growth in Europe. And they kind of continue in the trajectory that America was on under the Biden administration. Europe is ahead of us on all that stuff. And, I mean, there’s been some attempts at a reversal of the policies, the heavy regulations, et cetera. But they still remain under regimes that are pretty much, you know, climate change and regulations. And it shows up. There’s absolutely no growth over there at all. Initial jobless claims retreat in the past week, clear down to 207K. Wow.
SPEAKER 06 :
How about that number, 207,000?
SPEAKER 05 :
That’s the lowest I’ve seen in a long time. That is a bellwether, and it is an indicator of where our jobs market is right now.
SPEAKER 06 :
I mean, it’s hard for your economy to fall off a cliff, right, with numbers like this. And so, I mean, that’s why kind of that long-term, you know, this long-term trend is expected to continue, you think, at least the status quo at the moment.
SPEAKER 05 :
And let’s not forget the consumer. 32% rise in same-store sales at Chili’s. That’s just incredible. I mean, they haven’t added any stores, right?
SPEAKER 06 :
I haven’t made them any promises that we’re getting over there yet.
SPEAKER 05 :
I’m waiting for you. I think I might have to go there myself tonight and see what the buzz is.
SPEAKER 06 :
We’ll have to go catch a hockey game over there and swing by Chili’s. I think that’s where the closest one is. There’s not one very close to where we are, surprisingly enough.
SPEAKER 05 :
Okay, and then the other thing, going back to Europe, the U.K., which is the other big economy over there. France, Germany dominate. U.K. is a big economy, too. They say that the public interest is more important than private interest due to climate change, and they rejected two massive projects in the North Sea for oil drilling. So climate change still drives their agenda, and oil prices and gasoline prices will remain high in Europe. And looking back here to the second quarter of today’s Best Docs Now show, I want to go back to this story here right before we went to the break. The U.K. court on Thursday blocked the U.K.’ ‘s two biggest offshore oil and gas developments from producing any fossil fuels, ruling that the private interest of members of the public in climate change outweigh the private interest of the developers involved. Well, it’s hard to argue that the members of the public don’t get some interest and some benefits from cheaper oil prices and more abundant energy prices. But the court has ruled, ruling by the Scotland’s top civil court, overturned licenses granted to Equinor and Ithaca Energy and Shell, And the bad thing is, I mean, these companies were granted licenses, and they’ve been going full speed ahead on the jacked off.
SPEAKER 06 :
They’ve been making investments. I mean, they’ve been spending capital for this to occur, and then you pull it out from under them for whatever reason. I mean, what have we been saying? U.S. innovates, the Chinese, what is it, replicate?
SPEAKER 05 :
Counterfeit.
SPEAKER 06 :
And, of course, Europe regulates.
SPEAKER 05 :
Well, they’ve spent $2.8 billion on these projects, and they’re making big progress. And a judge in Scotland in the court comes in and shuts it completely down. So that’s, you know, the tale. We’ve gone the other direction here in the U.S., and obviously right before Trump took office, You know, Biden closed down the Pacific Ocean and the Atlantic Ocean for any exploration. Okay, here’s your biotechnics today.
SPEAKER 06 :
That would be known as sunk cost now, right?
SPEAKER 05 :
Yes. They’ll have to write it off. T-E-C-X, tectonic therapeutics. It was not in my app. It is in it now out of Watertown. Massachusetts jumps on positive data from early stage trial for lead asset pulmonary hypertension is what they’re working on. Pulmonary hypertension, which I had on Monday, by the way. After that deep seek news, I had pulmonary hypertension. But hopefully Tectonic can help me out with it. This stock is up 94% today. So we’ve added it to the app. That’s one that slipped by.
SPEAKER 06 :
That’ll give you hypertension, too, just in a good way, right?
SPEAKER 05 :
That’s a good deal there.
SPEAKER 06 :
Excitement, right?
SPEAKER 05 :
Now, a couple, you know, and this baffles me, too. I don’t understand why NVIDIA’s stock is trading so poorly. And it’s trading poorly. And a lot of times, you know, the chart knows. The chart tells the truth, what the public or what the investors really think out there, the big guys think. And it’s really a dull, sideways chart.
SPEAKER 06 :
Leverage. I mean, you’ve got to think. I was thinking about this a couple of days ago. If somebody had NVIDIA, one of those two times or even three times ETFs, I mean, you have a three-time ETF and the stock is, what, down 20%, 22% at one point?
SPEAKER 05 :
Yeah, that thing got murdered on Monday.
SPEAKER 06 :
Well, and that’s capital that just disappears. And so now, okay, you sell out. Well, maybe you buy one share of NVIDIA next time instead of times three. But to me, I think probably some leverage in that whole space got kind of obliterated for a bit.
SPEAKER 05 :
You know, former CEO of Intel, Pat Gelsinger, uh has been buying nvidia and he said his comments are i don’t understand why people are selling in their nvidia stock he countered with the news that this is more boom than a bus for ai stock and uh computing obeys the gas law he says that means it fills the available space as defined by available resources And he thinks it’s a very bullish development for NVIDIA. But you know what? Look, I just looked at the chart. It’s dead in the water. And I would definitely, I have a line drawn, a line in the sand. Should it drop below that line of the sand? It’s not as big of a position here as it used to be. We cut it a couple times. And right now, NVIDIA, now we’re up on our original NVIDIA position, which we still own. We’re up 414% in the premier growth portfolio. And in the aggressive growth, we’re up 595%. But it’s a 6% position in the ultra-growth portfolio. It’s a 5.4% position. I remember when it was 10, over 10%, because it had gone up so far. But the stock is dead in the water. You can’t argue that. that it makes sense from a valuation point of view, but what it lacks is that momentum. And I say all the time, look, you’ve got to have the valuation and you have to have the momentum and a good stock chart. And right now, NVIDIA lacks two of those. Maybe we’ll get the value players coming into it. I don’t know, but it’s not trading well. Okay, we’ve had, we sent up astronauts, the government did, right, in space. For a 10-day mission. It’s now going on six months. I don’t know what kind of overtime pay these guys are going to get, but it’s going to be massive. And NASA has reaffirmed that it’s working with Elon Musk at SpaceX to bring back astronauts Sunita Williams and Butch Wilmore from the International Space Station. I hope they got enough food up there and water and oxygen and all that kind of stuff. After U.S. President Donald Trump said on social media that he’s tasked the space company’s CEO, Elon Musk, with their return. So he obviously doesn’t have a lot of faith. in NASA bringing them back this was the first crewed mission of Boeing’s Starliner spacecraft which was another problem when Boeing was having all the issues that was one more problem that they have so anyways NASA and SpaceX have been tasked to expeditiously expeditiously bring back these two astronauts that are stranded in space biden blamed the the biden administration for the astronauts being virtually abandoned in space elon will soon be on his way hopefully all will be safe he posted on truth social kind of reminds me of apollo 13 mission and the movie with tom hanks and all that thing’s hard to watch you know i’m I’m struggling for breath as I sit there and watch it and claustrophobia and everything else. Just watching the darn thing. Okay, now when we come back, more on Elon Musk, okay? Tesla earnings, which are right up there. I would say NVIDIA is probably going to be the most highly watched earnings out there. But Tesla is right there with them along with Microsoft and Meta. Three of those companies reported last night. Tesla right now has given up some of its gains. Musk was really promoting the future of the company, which he’s pretty good at, the long-term potential. He says there will be full autonomy in Austin this year. We’ll see about that. And he gave a lot of other updates on Robotaxi. Tesla originally, initially was down. because the earnings report missed. And now, then it was up about 3% or 4% in the after hours last night. And as of right now, it’s up just 1.2%, 1.2%. And we’re going to go into what the analysts have to say, what the target price has to say, and what the chart has to say about Tesla right now. We’ll be right back. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 02 :
And welcome back here to the second half of today’s Best Stocks Now show. The NASDAQ has slipped into negative territory, down 36 points. The Dow is holding on to a 69-point gain.
SPEAKER 05 :
Mostly IBM. S&P is up eight points right now. Now, let’s take a look at Tesla. Let’s peek under the hood a little bit. Okay, their earnings came in a little lighter than expected. Their sales came in a little bit lighter than expected. And the stock initially sold off until Elon Musk did his conference call and talked about all of the irons in the fire that Tesla has. But at the end of the day, okay, here’s their quarter. Their sales were only up 2% year over year. You know, they have massive competition now in China. I mean, obviously it hasn’t hit the U.S. market. They dominate the U.S. market. But the U.S. market, I think, has softened a lot. I think that the demand and the issues around having an electric car and the inconveniences, et cetera, I think it’s made it less palatable. EVs are not as popular. I talked to a local auto dealer, and he says they can hardly get rid of their EV cars right now. So that’s a couple big headwinds for Tesla. And consider that it’s got a 161 PE ratio. You’ve got to look to the future. And he’s going to have to deliver on RoboTaxi and fully autonomous pretty soon. Because when you do the valuation on Tesla, I come up with 65% upside potential over the next five years. I’m using a 12% per year growth rate, which is very, very aggressive. Because they haven’t had that over the last year. They’ve only had low single-digit growth. But they’re hoping for bigger growth this year. In fact, they’re looking for 33% growth this year and 27% growth next year. Hence, my target price, which doesn’t meet, I would not put new money into Tesla right now. You’re buying the future, and that future has to hit. The momentum’s still pretty good, not like it was. I mean, when Trump got elected, it took off. You know, it’s almost like Musk is the vice president, one of the vice presidents. It’s like we have two vice presidents right now. He has the presidents here, there’s no question about it.
SPEAKER 06 :
He’s like the vice president of the budget for sure.
SPEAKER 05 :
Yeah, puts him into a pretty good seat there. So we’re going to continue to own it. Would it be something I would, if a new client came to me today, wouldn’t be one that I’d put them in right away? He’s got to deliver on this full autonomy and this whole robo-taxi thing, given the high valuation, nosebleed valuation. that the stock is trading at okay now let’s just take a look what other analysts are saying out there bank of america found positive and negatives from the earnings date uh… however headwinds seeing include the volume risk and impact on margins of lower average selling prices that was another problem with this uh… uh… call his his report was the margins are down the profit margins And Morgan Stanley said it’s kind of obvious that he kind of blew past the numbers and instead talked mostly about the future of autonomy, AI, robotics. which some people have said that’s another iron they have in the fire is the humanoid robot that he says everybody’s going to need someday. Wedbush says they think the stock’s going to $2 trillion. Okay, well, Wedbush has always been bullish on Tesla. Tesla’s currently at $1.26 trillion. And my numbers would take it to $2 trillion, 65%, but that’s over five years. They see it coming in 12 to 18 months. I don’t, but I hope Wedbush is right and I’m wrong. So anyways, we’re just kind of neutral right now on Tesla. Okay, Meta. The first thing Meta did was settle a lawsuit. Trump sued them when he got kicked off of Facebook. And they settled for $25 million. I think they want to get back in good graces. Trump had his social media account suspended following the January 6, 2021 Capitol riots. The $22 million will go for his future presidential library and the remaining for legal fees. So anyways, they smoked the peace pipe and everything good there. Now, Meta came in. I thought they had a pretty powerful report. They beat by $1.26 in earnings, and their revenue beat by $1.4 billion. I thought it was really a good quarter. Meta has delivered many good quarters in a row, and that’s kind of the stock of the day, really. Look at that chart, Barry. Look at that one-year chart on Meta. Isn’t that a beautiful thing? I mean, that’s like Dan Fouts’ touchdown pass to Kellen Winslow. Just beautiful.
SPEAKER 06 :
That’s how you draw it up, right?
SPEAKER 05 :
That is gorgeous, and that’s one of our biggest positions because we own it in the premier growth. We only own 18 stocks in that portfolio. That’s how particular I am. But we also own it in the dividend and growth portfolio. So we have a double position in Meta. I bought it recently. New clients are coming to us all the time. I wouldn’t buy it right now today. It looks a little bit extended. But let’s compare its valuation versus Tesla’s valuation. On Meta, I currently have a five-year target price. And I can’t tell you how important this is. And you get that in the Best Stocks Now app. Man, I live and breathe by these five-year target prices. It’s totally important to me. And I’ve got to have 85% upside potential or more. which eliminates about 80% of all the stocks out there. Meta, I’ve got so many here. Meta comes in at 106%, upside potential still. So it’s still a buy in my universe. Certainly 112%, actually. Yesterday it was the number one ranked stock in the app. Look at the reaction today. I think the app steered us in the good direction there, and of course it has been for the last several years. Today it’s number two. Vistra has reclaimed the top spot in the app once again. a stock that we have a heavy position in.
SPEAKER 06 :
You added to it. I added to it, yes.
SPEAKER 05 :
So Meta has momentum. It has the three things. Here it is. Here’s the pillar. I’ve got to have that valuation of 80% to 80% or more upside potential, number one. Number two, it has to have good momentum. Well, this is one of the best performers in the market. We went through the performance yesterday on Zuckerberg’s company, and it has to have a good stock chart. It’s like you say, if you drew up a beautiful stock chart, there it is. Picture perfect today. A new breakout, a new high. Meta is now $1.77 trillion. in market cap, the stock formerly known as Facebook. Okay.
SPEAKER 06 :
Do you remember when that thing IPO’d?
SPEAKER 05 :
Yeah. Yes. Right after he graduated. I don’t know. Did he even graduate?
SPEAKER 06 :
I never had so many people ask me about a stock at that particular moment in time, like in terms of an IPO, whenever Facebook finally, probably because they were all on Facebook at the time.
SPEAKER 05 :
I had a few people, I remember when Tesla went public, and I had a few people say, Bill, you need to look at this thing. Of course, it had nothing at that point, really.
SPEAKER 06 :
It could have gone either way at that point. It could have gone the way of… Who was Elon Musk?
SPEAKER 05 :
We didn’t even know who he was.
SPEAKER 06 :
Could have been Fisker, right? But ended up like Tesla.
SPEAKER 05 :
He was very determined to make that thing work. Now, Microsoft… Not good. That’s what’s taken the NASDAQ south here, I think, the biggest impact, along with service. Yeah, down over 6%.
SPEAKER 06 :
Yeah, and I mean, in their report, I mean, to their credit, their report wasn’t… It wasn’t terrible, of course. The Azure portion of the business had kind of underperformed expectations, but their AI revenue growth, albeit still a small portion of the business, that the AI portion of the business grew, I think it was like over 100, and I want to say 120%. I didn’t get the exact number here, but to me, does it deserve to get… 6% trimmed off of it?
SPEAKER 05 :
Probably not. It had 10% growth in sales and 12% growth in earnings. For a company that size, which is number three behind Apple and Nvidia, That’s still pretty good growth, but my valuation currently has it 76% upside over the next five years, which I need 80 or more. It doesn’t meet my valuation criteria. The momentum is not very good. It’s been sideways for quite some time, and the chart is not very good either. So it’s a hold right now, and it is also a big position because we own it in two of our portfolios. We’ll be right back with a whole lot more of earnings news.
SPEAKER 02 :
You’ve got to go where you want to go. Do what you want to do with it, whoever you are.
SPEAKER 05 :
And welcome back here to the final segment of today’s Best Docs Now show. Now, I’ve got to throw in a clunker every once in a while. This is for comparison. Comcast is another one that is owned… widely held is what we refer to there, widely held by a lot of the big wire house firms and talked about on CNBC ad nauseum.
SPEAKER 06 :
You want to guess what the institutional ownership of, it’s pretty amazing, 83%.
SPEAKER 05 :
Okay, so what are Comcast businesses? Let’s see. Comcast business, you know, obviously they have the Internet.
SPEAKER 06 :
Xfinity, yeah.
SPEAKER 05 :
Xfinity, but they have CNN, right? And look up their, while I’m giving out the numbers, look up their holdings.
SPEAKER 06 :
Yeah, I know they have NBC.
SPEAKER 05 :
This is just a dog, a dog of a stock. They beat by 10 cents. They beat their sales. Obviously, they sandbagged the analysts quite a bit and were able to beat because the stock, that’s like a sock in the gut there. Take Meta’s chart, turn it upside down, you have Comcast. Comcast is still a $126 billion company, but it’s a dog. What can I say? It’s down 9%. Look at that chart. It’s horrible. It’s hitting a new 52-week low yet almost every time somebody, well, NBC Sports.
SPEAKER 06 :
It’s NBC Universal. I mean, Peacock now. I think they have Sky Sports. They may own Sky News.
SPEAKER 05 :
They compete with Netflix. Compare them to Netflix. And, you know, very few portfolios that come to me from the wire house firms have Netflix. They almost all have Comcast. And here’s another telltale sign, okay? I’ve always said this. Comcast is going to raise their dividend. to 33 cents per share that’s what bad companies do for the most part they have to entice people in on why would i own content well we’re raising our dividend so that raised my bill a lot more yeah so that fits into the whole by the companies that consistently raise their dividend i don’t buy into that philosophy i’m sorry because the stocks underneath when they’re raising their dividends now look if meta raises their dividend that’s a different deal there because it’s still got a growth growth engine comcast is losing business uh raising their dividend big time uh money burner uh their sales up two percent year over year so i don’t like I’m not a dividend hound. You know, I’ve seen Seeking Alpha finally kind of switch away from the dividend hounds because they’ve been burnt so badly by the high dividend stocks. Those guys aren’t as popular as they used to be.
SPEAKER 06 :
To me, it’s a simple adage in terms of if you’ve got a company that’s paying a 15% dividend, what they are telling you is that you as the investor can do better with that 15% than they can. What does that tell you about their business?
SPEAKER 05 :
There’s nobody that sees the future there. Okay, I’m going to do two more stocks in the four minutes I have remaining. Number one, we always list our poor performers, too, because it happens, right? I mean, look at Microsoft down 6%.
SPEAKER 06 :
Can’t get away from the warts.
SPEAKER 05 :
No. You know, I had a guy, I don’t know, I just saw a tweet yesterday. He says, if you had to buy one stock, what would it be? And I said, Meta, that was yesterday. He said, would you put all your money in one stock? I said, no, I wouldn’t. I think 10 to 15, 15 to 20 sounds a lot better. He was looking for college funds for his kids, putting together a portfolio. And here’s the reason why. ServiceNow is one of those 18 stocks that we own in our premier growth portfolio. It’s down 12.3% today, 12.3%. So if you do the math, if it’s a 5% position down 12.3%, that works out to about less than 1%, just over a half a percent impact on your overall portfolio. If this was your only stock, your overall portfolio would be down 12%. ServiceNow, I think maybe their sales are starting to decelerate.
SPEAKER 06 :
They beat by a penny. I mean, they basically only beat by a penny, and their revenue is basically in line. So it was essentially a, you know, these types of companies were used to that beat and raise, you know, for infinity. And in this case, it was a, you know, a slight beat and raise. You know, in line with revenue.
SPEAKER 05 :
I will say this. I mean, I’ll look at it today. It’s pulled back to its support level at $1,000 a share. This may be a good entry point. I can’t tell you that right now. I have to look at the numbers, let the dust settle a little bit. But this could be a good entry point because it’s been one of the greatest stocks of all time.
SPEAKER 06 :
I mean, I will say subscription revenue was still up 20% year over year. They added a new AI feature. So if you’re going to pick a winner in the software space, that translates in the AI space. ServiceNow is one of them.
SPEAKER 05 :
Yes. CRM is one of them.
SPEAKER 06 :
That’s why we’re in that, too.
SPEAKER 05 :
I can one-up Meta today. Even a better chart than Meta today is IBM, which looks like a SpaceX rocket ship. Even though sales were up 1%, earnings were up 1% year over year. I mean, that is anemic growth. Yes, the dividend is 2.6%. But you have to wonder if IBM doesn’t have some kind of AI component or something. I will have to dig into the numbers on IBM later. I doubt very much that it meets my criteria because over the last five years, it’s averaged 1% per year in growth, which doesn’t mean my… And you’re not going to pay 21 times forward earnings for 1% of growth. Unless they announce something today that’s going to bring 10% growth over the next five years, which I highly doubt. But we’ll look into it. We’ll see. Tremendous move today, up 13.5%, and that’s lifting the Dow. Okay, I told you, we did it. We got three hours’ worth of work done in one hour. We have the government efficiency. I had Doge working at Gundersen Capital Management to make us more efficient and productive. And we’ve got a full day ahead. I’ve got about 1,000 charts to look at here today. It tells me so much about how the market is behaving or the weak spots are. I’m anxious to see how some of these oil stocks are doing here today. And the free week trial is still on. I can’t even believe the interest and the people that have signed up for that. It blows me away. Exceeded all my expectations. Go to GundersenCapital.com for a four-week live trading trial and to learn from. a seasoned money manager of 25 years in the business. Say, I don’t have the time for that. We’d like to interview you about managing our money. Give us a call at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 04 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
