Join Bill Gunderson as he navigates through the complex financial landscape, examining Tesla’s recent performance against powerhouse Google. From an in-depth analysis of Tesla’s sales figures and growth challenges to Google’s formidable advances in AI and advertising, this episode offers critical perspectives on tech giants ruling the stock market. Armed with the latest earnings reports, Gunderson provides actionable insights designed to help investors understand the implications for future investments.
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 Gunderson Capital Management. Here is professional money manager Bill Gunderson.
SPEAKER 01 :
And welcome to the Thursday. It’s the Thursday, July 24th edition of the Best Stocks Now show with professional money manager Bill Gunderson back in the saddle again. And we’ve got a mixed open here to the market so far. On the one hand, we’ve got the Dow down 177, and you can pretty much point a finger at IBM over there. That was down 9.4% last time I looked, and it is a Dow. A member of the Dow. On the other hand, the NASDAQ is up 39, almost 40 right now. That’s a new all-time high. We finally cracked through 21,000. We’re at 21,060. A couple big winners in the NASDAQ today. Google not doing too bad. T-Mobile having a very good morning, up almost 6%, a little over 6% right now. And slicing down the middle of the aisle there is the S&P 500. It’s up 14 points right now. And that’s a new all-time high. What can I say?
SPEAKER 1 :
6,373.
SPEAKER 01 :
Okay, that’s most people’s target price a year from now. What are we going to do? Take the rest of the year off? And we’ve got the 10-year is up about five basis points this morning as the call for Powell’s ouster goes. uh continue to uh grow uh and the gold down oil up a little bit bitcoin hanging out at 119 000 these days so welcome to today’s best stocks now show with professional money manager bill gunderson president of gunderson capital management and i’m here with barry kite our chartered financial analyst and our certified financial planner And quite a morning here this morning. Man, I tell you, between the deals going on around the world and the earnings, I mean, we are now, by tomorrow we’ll have 122 S&P 500 companies that we’ll have reported this week. And we’re going to have a very, very good, this will be an interesting newsletter tomorrow. the coming weekend, Barry, with updates to those. You know, it’s those overall S&P 500 earnings estimates that drive the bus.
SPEAKER 02 :
And we’ll have a big week next week. I mean, these next two newsletters, and I was talking about your S&P outlook yesterday. Yeah, these two weeks are kind of the… You’ve got to sharpen that pencil and get to it.
SPEAKER 01 :
And if you just started listening to the show or a fairly recent, you know, the market is not that hard to figure out, to be honest with you. It follows earnings. And the fact of the matter is S&P 500 earnings have been going up since 2009. Yes, that’s right. And where did they start out in 2009? $60 per share. Okay, that’s when you take all the S&P 500 companies and there’s a divisor that you use. It’s all market cap weighted. And they come up with a single number, earnings per share for all 500 companies. And we got down to $53 a share back in 09. That was after the 08, 09 financial crisis. and the 53% sell-off in the S&P 500. And earnings have been going up every single year except for the COVID year. And I think we can put an asterisk next to that one there, Barry, as a one-time event, let’s hope. Hopefully, yeah. And, you know, other than that, this year we’re looking at 250 somewhere in there in earnings. And by 2027, the estimates are up around $300 per share. Nothing explains and nothing could be more simpler than the simple fact that the The S&P 500 has gone from 666 back then to a record high today of 6,300. Then stocks and indexes follow earnings. And just as location, location, location is the cat’s meow in the real estate market, earnings are the mother’s milk that drives the bus in the stock market. And not only do earnings matter for the indexes, but it comes right down to the individual stocks. And you look at these companies that are reporting 2% or 3% earnings growth, and you’re seeing that they’re the soggy stocks in today’s market. And you’re seeing the stocks that are producing double-digit earnings growth and continue to produce double-digit earnings growth. Those are the better stocks in the market today. It’s a very, very simple concept. Stocks follow earnings. And we’ve got a lot of them to report here today. And we’ll get to that in a bit. There’s some good ones and some bad ones. I just want to revisit one from yesterday, Barry. Now, I was in the air yesterday flying. I was in a plane. Not skydiving or any risky activity. Flying around the neighborhood with my cape or anything. But anyways, you know, that G.E. Vranova was quite a story yesterday.
SPEAKER 02 :
Amazing, yeah.
SPEAKER 01 :
And it just puts an exclamation point next to that nuclear sector, which we’ve been all over here for the last year probably. And, you know, the main players are GE Vernova, which was up 13% or 14% yesterday yesterday. It’s just amazing to me this comeback in nuclear. I’m a guy who saw the round in Three Mile Island when that happened. I’m a guy that was at the No Nukes concert in San Diego in 1976 or 77, somewhere in there. When Bruce Springsteen and Jackson Brown and the Youngbloods and Carly Simon and the rest were all singing out against nukes. And now this amazing comeback. And, you know, I think that exclamation point comes from A.I., And I heard part of Trump’s speech. They had a big AI summit. I know Jensen Wang was there because Trump was picking on him.
SPEAKER 02 :
He was in the front row. Yeah. And he asked him to stand up.
SPEAKER 01 :
Yes. He got a standing ovation almost. But that need for energy has just ballooned. And, you know, you’re seeing all kinds of crazy partnerships. Liberty Energy. whose former CEO is now our energy secretary, is teaming up with Oklo. Those are strange bed partners there. And they’re going to team up with all kinds of different things. And Oklo is the one that is developing the small modular, one of the companies, up in Idaho. Then you’ve got… No, Oklo’s in… Is Aqua in Idaho? Aqua, I think, is in the Bay Area because, you know, your guy from OpenAI, Sam Altman, was on the board of directors. Maybe it’s SMR, which is up in Idaho. But anyways, this need for energy, I told you it was going to be a very investable theme going forward. Because it’s a powerful need and we’re behind the eight ball and we’re behind the curve and we’ve got to really advance things very, very quickly. But suffice it to say, we’re seeing new highs in the NASDAQ. We’re seeing new all-time highs in the S&P 500. Now, the Dow came very close to making a new all-time high. And I’ve said this before. When I got in the business, the Dow was 3,400 around in there, and now it’s 45,000. Why? Because earnings have driven the bus over those years. We have seen some expansion in the multiple markets. In fact, we’re at the very high end, upper end of that multiple band up in that 22, almost 23 area with the S&P 500. And, you know, that’s rich. What can I say? You’ve got to be careful. with the valuations right now, but the momentum and looking ahead to the future is continuing to drive these markets to new all-time highs. That doesn’t mean you don’t have to be on your guard at all times. Well, we’ve got earnings from Tesla. Which I think has troubles. I do. And I’ve been saying that. I’m not an owner of Tesla. And there’s a lot of perma-Tesla bulls, although I think a lot of them deserted Musk during the whole Doge episode. And I think they just have – I don’t think it’s Musk himself. I just think that the Tesla story of buying electric vehicles – Mercedes can barely give them away right now. I mean, the demand for EVs has gone down considerably, and the price is not cheap for an EV.
SPEAKER 02 :
Well, when California registrations yesterday announced they’re down 20%, essentially down over 20%, and the one part that’s been registrations are increasing actually is hybrids. I mean, remember the old hybrid? I mean, the old hybrid’s the way to go. You get a little bit best of both worlds.
SPEAKER 01 :
We still have in the family a hybrid with 140,000 miles on it, and it still runs like a champ and gets 46 miles to the gallon. We’ll be right back.
SPEAKER 1 :
Thank you.
SPEAKER 01 :
And welcome back here to the second quarter of today’s Best Stocks Now show. Well, not only is the market pretty richly valued here at 22.4, 22.5, somewhere in there, forward PE for the S&P 500. We should be down around 20 maybe in a market like this with the interest rate environment we’re at. But the other half of that equation is momentum, sentiment, technicals, etc. And when you’re seeing new highs in the market, that means obviously the market’s still in an uptrend. And until that trend breaks and until that momentum starts to get diminished, We don’t know how high it can go. And I’ve always said that’s all you can do is take it one stock at a time. You take it one stock at a time and you watch your stocks very, very closely. You don’t want to lose half your gains. You know, we have some big gains in a lot of these stocks. A lot of times we’ll sell half of our position. which we did recently with a few stocks, several stocks actually this year, or sell it down. One stock had gone up so much we sold the third of the position. That was Robinhood. So anyways, I always have said if you keep the market simple, on the big scale, the macro market outlook, it all comes down to earnings and the earnings outlook. going forward the next 12 to 24 months. And yes, those numbers are out there. These companies talk to these analysts. These analysts, which I did for a few years, they get good info. And if anything, they get sandbagged. And they stay in touch with these companies. And they know what their internal forecasts are. Any company that’s publicly traded has got a five-year forecast out there that is worth their salt. And those valuations are what they are, and they change every week. And you have to stay on top of those valuations and those earnings estimates. It’s very, very critical.
SPEAKER 02 :
Well, and with the app, I mean, we’re literally valuing, you know, the names we own, the names we don’t own on a daily basis. I mean.
SPEAKER 01 :
Yes, and the other point, in fact, I didn’t make the point I was going to make. There’s 1,386 B-plus or better. Okay, so B-plus is my line in the sand. Those are the stocks that have the valuation and the momentum criteria. And the performance numbers, performance numbers very important that I like. Normally we’re in the 500 or 600 range. The reason we’re at 1,386 right now is not because there’s a lot of valuation out there. There’s a lot of momentum out there. And that’s half of that equation, that quant equation is momentum. And breadth. Breadth is really widened in the market. The breadth is, yes, 1,386. That’s one-fourth of my database.
SPEAKER 02 :
Exactly.
SPEAKER 01 :
So I’m looking at 800, 900 charts every day that have been filtered. Remember, the filtering is the important part to narrow these down. Normally, you have 500 or 600 to look at, but right now, That’s an indicator of not only is the market overvalued, but there’s a little bit too much bullishness out there. But having said that, we hit a new high yesterday, and we’re hitting another new high. So it’s not a time to be like, you know, I’m going to just really throw a lot of money at the market right now. I think it’s more of enjoy the ride, but keep an eye in the rearview mirror.
SPEAKER 02 :
It’s like a steady allocation, a lot like 2024 where you hit, what, 50-something all-time highs in 2024, and at no point really in 2024 was it like, hey, back up the truck, just throw it all in, right? You just had to steadily allocate towards equities as the market continued to go high.
SPEAKER 01 :
But having said that, March of this year was back up the truck and throw it all in. And I wrote that article on the worst day of the market. I went home. I pondered. You know, I gave it a lot of thought. I had a good night’s sleep, woke up the next day, watched that interview with Besant, and I said, you know what? This is going to work. And there was the point to go all in. And the last time was January of 2023 after the Fed was finally starting to pivot and stocks had gotten pretty cheap. And then the time before that was during the COVID, March of 2020, when we wrote that article, it’s time to go in with guns blazing. This is not a time to go in with guns blazing. This is a time to hunker down up in the mountains with guns ready to pull the trigger on the cells, maybe. And you know what? You don’t want to sell unless you have to. You want those gains to keep going. You want to try to minimize the tax considerations, but sometimes you don’t want to give up half your gains to try to save from paying the tax man. It’s better to pay the tax man than to lose your gains is the way I look at it. And of course, if you’ve got an IRA, it doesn’t really matter. It’s all a moot point. There you’re looking to protect your gains and understand that you’ve had a pretty good ride, and you’ve got some huge gains in a lot of stocks right now, and you don’t want to give those gains up. Those stocks are pretty darn expensive at this point in time. Well, guess who’s going to visit the remodel? He ought to know something about remodels, buildings, and a lot of these kinds of things. Trump’s going to make a call to the Federal Reserve today. They’re busy painting the gold-plated sinks and toilets white today, you know, to hide the gold that they put in the building. I don’t know. But they put a lot of money in that building, and he wants to know how it was spent and make sure nobody lined their own pockets. There’s a lot of pressure on Powell. I can say that right now.
SPEAKER 02 :
Even Hilarion. I mean, Muhammad Hilarion a couple of days ago, who used to run the IMF. I mean, he and obviously PIMCO guy from years back. And I mean, he was on record as saying Powell should step down simply because number one, to keep the Fed’s independence because a lot of the scrutiny is coming down not just on Powell but just on the Fed in general. So he’s getting it from a lot of ends at this point.
SPEAKER 01 :
Yeah, I think looking at the real estate market, I mean, I’ve got to agree. The real estate market, I’ve seen homes just come to a standstill in our neighborhood, and this is one of the hottest neighborhoods in all of South Carolina. And I’m seeing those for sale signs. They’re still up and the people aren’t selling. So it’s hurting the real estate industry big time, number one. Number two, I think the number two guy in the U.S. government, it should be Vance, but we don’t see much of Vance. We see a whole heck of a lot more of Lutnick. And Besson. And Besson and Burgum from South Dakota, I think he is. But anyways, Lutnik is calling for his ouster. And Lutnik, like I say, I think he’s the number two man out there. And Besson is even starting now. Now, according to the news wires, Besson talked Trump out of it. He thought we had enough. We have enough volatility right now. And he talked him into keeping Besson. Not Besson. The Fed Chairman. Powell. Our friend Jerome Powell. Okay, when we come back, we’re going to get into some individual stocks. There’s too many to talk about. We’ll do as many as we can. We’ll be right back.
SPEAKER 06 :
I just don’t understand anymore. Well, the top brass don’t like him talking so much. And he won’t play what they say to play.
SPEAKER 01 :
Now, back to the second half of the show.
SPEAKER 08 :
And welcome back here to the second half of today’s Best Docs Now show.
SPEAKER 01 :
The ECB keeps their rates the same, but they’ve cut 10 times during Jerome Powell sitting on his thumbs. We’ll see if that cost him his job or not. The U.S. and EU. Okay, the Japan, I heard the details on Japan. It sounds like a pretty good deal to me. 15% on them. So you’re going to be paying more, I would think, for a Toyota or a, you know, whatever, Nissan or Mitsubishi. And they’re going to open up their markets to our goods, okay? So we’re going to collect a lot of tariffs. And we’re going to have access to what they buy. You know, they’ve always been very protective in Japan with their Kobe beef and stuff like that, their rice, things like that. They’re a very protective country. But opening up, and it sounds to me like they’re on the same track maybe with the EU, the European Union. About 15% is what it sounded like.
SPEAKER 02 :
Yeah, we were talking about it yesterday. It’s almost like, you know, a domino effect, right? You’ve got, you know, especially in Asia, right? You think of, you know, Asia, I mean, Japan and South Korea both, you know, sell things to us. And so right now, Japan’s at 15%. South Korea is trying to get a deal done. Currently, if it’s at 25, well, they’re going to be less competitive. I think that’s why we got a handful of Asian countries yesterday. You had the Philippines announce the same thing with Japan. It’s not just tariffs. They’re going to make a $550 billion. Japan is making a $550 billion investment into the U.S., Apparently 90% of those profits are going to go to the U.S. So it’s pretty interesting. It’s more diplomacy is kind of what I’ve read. related to versus just trade i mean you know with philippines it’s a military uh you know military cooperation particularly since uh you know china’s been kind of picking on them uh you know and so it’ll be you know interesting to see how i think once we get some of these you’re going to begin to get more and more and that framework is likely going to fit for eu yeah
SPEAKER 01 :
The Chinese stocks were on fire yesterday. You know, just looking at their P.E. ratios, they’re 10, 13, 12, your Alibaba’s, your Tencent Holdings, your PDD’s, etc. I mean, the cheapest growth stocks in the world, but they come with a heavy dose of political risk. are the Chinese stocks, and no question about it. Now, there’s a deep value investor out there in Phoenix, Smead Capital. They’re saying today stocks valuations have reached the line of death today. Similar to the dot-com bubble. Well, I don’t see it as the same as the dot-com bubble. I was there during the dot-com bubble. Yes, and most of those companies didn’t even have earnings. They were trading on how many subscribers they had. They were trying to AOL how many accounts there were. Even though those accounts didn’t bring in any money, they were using some real fuzzy math back during that time period. But, you know, I do agree. I wouldn’t call it a death march here in the market. But like I say, I mean, that reiterates my take that things are very expensive right now. And you have to watch it like a minefield a little bit. QuantumScape expands its Volkswagen battery deal. You know, QuantumScape we’re keeping our eyes on with their solid state technology. batteries for for vehicles why would that be a big deal because it would almost double the range of these evs which obviously then you can forget the hybrids if you’re getting twice the range as you’re getting now with an ev then i think they’d become a player now let’s look at tesla Okay, I have been saying, and I’ll just give you the raw numbers here. This is their quarter. This is horrible for me. I mean, if he wasn’t Elon Musk, this stock would be getting killed, I think. Their sales were down 12% year over year. That’s awful. What if NVIDIA’s sales were down 12% year over year? Okay, yeah, they did 22.5 million in sales the same quarter last year. They did 22 this quarter. They did 25 a year ago. They’re falling apart in China. They’re falling apart in Europe. And you’ve got to say their number one honey hole is California. And you said their registrations and sales were way down in California. So, you know, that’s pretty much across the board. The growth story is not there. I’m sorry. Their earnings were down 23%. Okay. Here’s their last four quarters of earnings, plus 9%. minus 15, minus 40, minus 23, and yet the stock is trading at 167 times earnings. I’m sorry. You can talk about Robotaxi all you want, and you can talk about humanoid robots all you want with me, but the numbers don’t add up as far as a growth story. I’ve been saying that about Tesla for quite some time, and I’ve been saying it about Apple for quite some time. and i know wedbush continues to pound the table on those two stocks and maybe they’re backing off a little now but i just don’t see uh the growth story there anymore in tesla as as buyers uh you know interest in getting an ev has waned considerably then it comes with the Kind of the controversy that follows Elon around. He’s a brilliant guy. He’s the richest guy in the world. Maybe not anymore. I saw somebody was closing in on him, probably Jensen Wang.
SPEAKER 02 :
I was about to say, probably with NVIDIA being over $4 trillion now.
SPEAKER 01 :
so anyways i just don’t see the growth story they made 284 million on their bitcoin holdings i mean where you can figure out how much that is per share how much what they have made without the gain on the bitcoin always and that’s not something you can count on that’s not their core yeah that’s not that’s what we would consider not their core business right i mean Well, no, you leave that to MicroStrategy. They’ve changed their name to just Strategy now. They’ve put their whole stake into Bitcoin. I mean, their stock totally depends on Bitcoin. Okay, now let’s go to Google, which I thought had a very good report. I think Google is miles ahead of Tesla in the robo-taxi with their Waymo. And I think Google is a formidable player with AI. Now, we just talked about Tesla’s quarter. Google had a very good quarter for a $2.3 trillion company. Google’s earnings were up 24%. Now listen to their last four quarters. Plus 28, plus 32, plus 26, plus 24. Those are solid numbers for a 2.3. No, they’re not NVIDIA-like numbers, but they’re solid numbers. And, of course, they have the ad revenue that Tesla doesn’t have. Maybe, well, no, that’s a separate company. His AI, his… His ex-company is not part of Tesla.
SPEAKER 02 :
And so is SpaceX. People always think, oh, yeah, SpaceX is part of Tesla.
SPEAKER 01 :
You’re getting SpaceX.
SPEAKER 02 :
No, it’s not.
SPEAKER 01 :
You’re not, and you’re not getting the brain one either, the Neuralink. Okay, Alphabet’s earnings up 15%, up 12%, up 12%. This one was 14%. Now, you tell me, how in the world do you justify a 167 PE ratio for Tesla, which has got negative growth and only a 22 PE for Google? You tell me which is the better buy here. I, you know, look, I’m just a numbers guy for the most part. Numbers don’t lie. Numbers are numbers. And you’re getting much more for your buck with Google and Google’s twice the size of Tesla. So anyways, that’s my thoughts.
SPEAKER 02 :
And you get some robo taxi with Google as well, right?
SPEAKER 01 :
Well, you’re getting Waymo.
SPEAKER 02 :
Waymo and AI, right? You get a little bit of everything.
SPEAKER 01 :
You’re getting their AI and you’re getting their ad sales, which, you know, the Trade Desk and all the others that have ad sales, those Google ad sales. Their sales for the quarter, $96 billion. It’s now at $2.34 trillion. And we own Google. We don’t own Tesla. Right. Okay, let’s see what else. Well, you know what? I want to go to the Best Docs Now app just for a minute and do a little side-by-side comparison between the two. But you know what? It’s got the Musk appeal. And I think some of that is starting to dissipate. Because of the controversy, whether you like Musk or not, he certainly made plenty of enemies. Now, let’s just take a look. I’ll look this up during the break. We’re going to compare the performance of Google and Tesla and the current valuations on those two stocks. Then we’ll get into Chipotle and T-Mobile. All right, when we come back. And welcome back here to the final segment of today’s Best Stocks Now show. Now my five-year valuation on Tesla, Barry, is using a 12% annual growth rate, which that’s the consensus estimate out there. That’s a stretch. You think that the demand for Teslas is going to increase and the sales of Tesla and the earnings of Tesla are going to increase by 12% per year? They’re going the other way.
SPEAKER 02 :
Yeah, but your growth depends on the robots, right? The robo-taxi versus simple car sales. So there’s a leap there. It’s not that Elon hasn’t been the great showman and pulled it off before, but that’s where the risk lies, and that’s obviously why… The PE ratio is what it is because folks are pricing in some of those long-duration potential.
SPEAKER 01 :
Well, okay, so using a 12% growth rate, I come up with 65% upside potential over the next five years. That’s not very good. That’s a C-, okay? I demand 80% or more. So it does not meet my valuation criteria at all. Its performance grade is a B minus. You know, it’s done good. It had a three-year stretch. This last three years, if you look at where it was three years ago to where it is today, it’s only done 6.9% per year. Of course, you had a bad year in there, I think 2022 or something like that, but it was down a lot. But anyways, it’s questionable. It’s very questionable. There’s a lot of different outcomes. If you were to do a Monte Carlo, is that what they call it? It would be all over the map, right?
SPEAKER 02 :
It would be, for sure. Yes, okay, all right. There’s a lot of different outcomes, and to me, the biggest risk, honestly, is… you know, is Elon. I mean, you know, there’s, it’s no different than, you know, Warren Buffett, Berkshire Hathaway, you know, 30 years ago where, you know, people did math and it would be, Hey, if Warren Buffett, you know, something happens at Warren Buffett tomorrow, Berkshire is going down 25%. Obviously that’s not true now.
SPEAKER 01 :
He lived to 93. He’s still alive.
SPEAKER 02 :
He’s retired. And he passed along to his successor, right. And handled that very well. There’s a lot of you know, key man, all of our individual business owners out there know, and women out there know, that there’s a lot of key person risk involved with Elon, which creates more issues. I mean, that just is what it is.
SPEAKER 01 :
The stock is down 8.7%, and it’s lost its trillion-dollar status. It’s now a paltry $980 billion. So he might have lost his richest man in the world status here today. We’ll see. Okay, now, on the other hand, Google, and then we’ll do T-Mobile real quick because we do own T-Mobile. It’s one of the stocks in our premier growth portfolio where there’s only 19 stocks, so it has to be pretty premier to be in that portfolio. Google, on the other hand, I just can’t call it Alphabet. I can’t either. It’s still Google. I Google things all the time, and why do they change it? They don’t own the Alphabet. Maybe they do. They think they do. they’re God okay now the valuation on it is 76 percent upside potential so you’ve taken a little bit of value out of it but it just seems to be much more of a solid reliable not a lot of controversy although you know their their dominance in search actually it’s a good thing if you’re a shareholder it’s a bad thing if you’re a competitor But Google for me, and I just think they had a much better quarter, and it’s 22 times earnings. Okay, now we’re going to go to T-Mobile. I’ve had a lot of clients and subscribers and whatnot saying, Bill, I don’t know about this T-Mobile. That’s all I can say is they churn out north of 20% per year growth per year. for the last five years, a very reliable growth stock.
SPEAKER 02 :
And it was on our pain list, but we were patient with it.
SPEAKER 01 :
It was giving me a little pain.
SPEAKER 02 :
No, I know, yeah. I mean, it was on your kind of short list, and there’s always going to be someone, right, when you’re improving a baseball lineup or a sports lineup, right? No matter what, there’s somebody towards the bottom of the list, and I was happy to see that rebound.
SPEAKER 01 :
Yes. Came in with a very nice report, and it’s up 6.5% today, $15 a share. But, you know, the thing about T-Mobile is the management. They have crackerjack management that has grown that stock. Over the years, and, you know, they’re in a competitive world with AT&T and Verizon and all these other discount plans and whatnot. And yet they’ve steadily driven that earnings growth and turned this into a $282 billion market cap company. Now we’ll have to see where the new numbers come in and see if it still meets all of my criteria, but I’m getting just a little bit of a reprieve here today with this nice report coming in from T-Mobile. They haven’t had negative comps in a long… I don’t remember the last time Chipotle had negative comps. Oh, yeah. Has inflation caught up with Chipotle? Is it too much now for the Gen Zs to order their Chipotle and go pick it up? And guacamole, you know, it’s not what it used to be. It’s pretty expensive these days to go get a Chipotle burrito or a bowl.
SPEAKER 02 :
Surprisingly, I don’t know the last time I’ve been there. I’m just trying to think about that. We used to go there fairly often, and now I’m thinking, I don’t know the last time I’ve been in there.
SPEAKER 01 :
Sales up 3%, earnings down 3%. This is the worst quarter at Chipotle in my memory, and that’s just a horrible quarter. They say it’s a one-off, and they’re going to get back to growth, but boy, I don’t know. And what’s that say for the Chipotle competitors, the wannabes like Kava and those? And then the last one I’ll mention here in this last 30 seconds is a dinosaur of yesteryear, IBM, down 8.4%. You know what? Look, they made $13 per share 10 years ago, and they’re still making that. There’s just not been a real steady growth. Their quarter, they had a decent… But they’re a single-digit grower, single-digit grower, and that’s not going to produce double-digit growth in your portfolio with the single-digit grower. This will all be part of my workshop coming up in Detroit, Bloomfield Hills. That’s coming up on Tuesday night, August the 5th. To reserve a spot to that, 855-611-BEST. To reserve an appointment with us while we’re there, 855-611-BEST. To get this week’s newsletter for four weeks and the next three weeks, GundersenCapital.com. 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 SIBC and FINRA.
