Join professional money manager Bill Gundersen as he takes you on a journey through the latest happenings in the stock market. From the decision-making challenges faced by investors in 2022 to the promising returns some saw earlier this year, it’s a conversation rich with industry insights. Get the inside scoop on ETF trends, market highs and lows, and the ever-evolving landscape of AI investment—a space still in its nascency yet brimming with opportunity.
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 04 :
And welcome to the Tuesday morning. It is February 11th, live edition of the Best Docs Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And Barry is back from his, I call it the baptism of fire, Gunderson. Going into that NASDAQ building into the sacred hall of momentum back from New York. And we’re going to blame this downward move on him. Actually, probably Chairman Powell’s in there. He’s in no hurry to lower interest rates, and the Dow does not like that. Down 119. That’s 27 basis points to the downside. We stand at 44,350. The S&P is down 18 to 6,048. The NASDAQ is down 58. AI taking it on the chin just a little bit, a little bit of profit taking. The NASDAQ is at 19,657, down 29 basis points. The small cap is down about a half a percent. They don’t like it when Chairman Powell doesn’t promise a rate cut soon. And the small caps are down 46 basis points right now. Interest rates are about steady. We closed the day yesterday at 4.49, 4.47, somewhere in there. And that’s where we are today. Oh, I know we’re up. Uh-oh, 4.53. Okay, that’s what’s got the market upset today. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management, a fee-based nationwide firm. We set an all-time record by being invited to the NASDAQ closing bell ceremony twice this year. Yeah. I guess I was there right before Christmas, okay? So once in 2024, now once in 2025. It’s quite the experience, isn’t it, Mary? Tell the listeners a little bit about it.
SPEAKER 03 :
Yeah, well, you were right. I mean, you said, you know, you’ve got to go do this. And so, you know, they kind of, you know, you show me. It’s a quick trip. You show up at 3, and, you know, they kind of shuffle you in, kind of give you the way of the land inside the little studio there. And, you know, cameras are around. Of course, you’ve got all kinds of stuff. I’m watching the NASDAQ, hoping it’s going to finish in the green. I think it was up about a percent most of the day. I kept keeping an eye on it. You can see that in the studio. They were there. It was the 15th anniversary, actually. I learned something while I was there. It was the 15th anniversary of TQQQ, which is basically the nasdaq triple uh triple leverage etf and it’s the largest actually by aum it’s the largest uh leverage etf that there is so it’s 25 billion uh you know 25 billion i was thinking if you’re three times qqq absolutely how do you think it got there right probably moving quickly yeah
SPEAKER 04 :
Well, I mean, over the last 10 years, it’s averaged 36% per year, okay, if you do the math. But along the way, you’ve had some tremendous turbulence. You’ve had some dips.
SPEAKER 03 :
Yeah, the math works the other way in a year like 2022, right, if you look at what the NASDAQ did during that standpoint. But it was a great event, unique. It’s kind of funny. They throw your picture up on the – Up on Times Square out there, which is kind of odd, but it would be neat at the same time. But it was a good experience. And then you’re out of there around, what, 430, 445? Very well choreographed. Yeah, it is. The ProShares TQQ has $26 billion in it.
SPEAKER 04 :
And if you think about it, That right there is a testament to the power of the NASDAQ and the growth stocks. It’s certainly done a lot better than triple Dow, which I know there’s a triple S&P 500. But 36% compounded annual return over the last 10 years. Take that, Coca-Cola. Okay, well, yeah, we had a pretty good day in the market yesterday.
SPEAKER 03 :
Finished in the green? Yes, .98. .98 on the NASDAQ.
SPEAKER 04 :
And we were up about the same. I think we were up 1% yesterday, so we did okay, too. It was the first time in three weeks that we didn’t have a Manic Monday. If you remember, last week we had the tariff tantrum and the week before that we had the deep seek, horrible smashing of the market. But Palantir had another good day yesterday, and Vidi has been pretty perky here recently. Spotify had a good day. Gold finished at 2,934, all-time high. How about that? And earnings coming in. This is a busy week. We had McDonald’s yesterday, which reported not bad. But it’s not a best stock now anymore. Not a best burger now either. I mean, In-N-Out Burger, it can’t even hold a candle to that. Coca-Cola reported this morning. They had some, I don’t know if they advertised during the Super Bowl. I’m sure they did. But it’s obviously a single-digit grower in today’s world. Shopify has reported. That’s one we own. Marriott has reported. Lyft’s going to report after the close. DoorDash. Tomorrow we’ll get Cisco, which obviously time has passed Cisco by, but it’s still in the Dow. The Dow’s pretty slow to make changes. They should have changed out Cisco a long time ago.
SPEAKER 03 :
And the AI scene is trying to help Cisco, maybe. Yeah, but it’s still a 4% grower. Right.
SPEAKER 04 :
And then AB&B, Roku. Roku’s trying to turn the page. They’re almost there. They’re almost profitable. They still have some pretty good sales growth, and they’re pretty close to crossing the line to profitability. That’s always a major marker in the life of a company. Okay, tariffs. Who’s next? You know, the EU is not going to blink like Canada and Mexico did. And Trump has even said it himself. He says, oh, they’re tough. They’re going to be tough. But they’ve been taking advantage of us for years, says President Trump. And the EU vows to respond to U.S. tariffs with firm and proportionate countermeasures. So you better stockpile your French brie cheese, your French wines, your Switzerland fine cheeses, etc. Holland, known for their cheese, that Dutch Gouda, of course. It looks like the trade war is setting up to be pretty hot and heavy. He did sign the tariffs against steel and aluminum. I put out a chart on X yesterday of I think it was copper, C-P-E-R-E-T-F. which has like Freeport-McMoran in it and others that are, you know, there’s not really any one company that just produces copper. They usually are into a lot of other things, too, like steel. It had a very good day yesterday, obviously. I mean, Trump with his U.S. first policy, you had a pretty good gain in the U.S. steel and mining stocks. The fury against… It was the old Dr. Copper, remember? Yes, Dr. Copper. I can’t say that the economy drove it yesterday or the building boom drove it. But tariffs against other – and, you know, they’ve been cheating. Look, they’ve been relabeling cheap steel and bringing it into America and other imports, aluminum, et cetera.
SPEAKER 03 :
Well, what did we find? We found – I remember it was counterfeit titanium. Oh, yeah. Remember you read that story? And I’m like, well, that doesn’t sound good.
SPEAKER 04 :
Think about that next time you’re on a regional jet coming from New York City and flying over Washington, D.C. Number one, you’ve got to worry about – blackhawk helicopters and counterfeit titanium oh boy i don’t want that in my my wings uh the fury against elon musk continues now he’s floating auditing the fed he’s sounding like uh ron paul okay ron paul that was his big thing we need to audit the fed hey i got nothing that’s all i know all these audits are turning up all kinds of stuff all right All kinds of goodies buried deep within the bureaucracy of the U.S. government with checks being funded by us, let’s not forget. Being funded by us, you know that money that comes out of your paycheck every week or two weeks or whatever it is? Oh, FEMA. They caught FEMA all kinds of millions and millions of dollars going to nice hotels in New York. Did they subsidize your hotel? Did FEMA pay for your hotel?
SPEAKER 03 :
Thankfully, it did not come from a disaster area.
SPEAKER 04 :
You know what? Millions and millions. And they were nice hotels, too. I mean, not like Skid Row or anything like that to house illegal immigrants. And then, of course, North Carolina comes along, and guess what? FEMA’s out of money. So there’s some angry people out there with all of this stuff being unearthed. I say go ahead, audit the Fed.
SPEAKER 03 :
Well, I mean, if you’ve got publicly held, publicly traded companies, right, who are held to a higher, I mean, should they be held to a higher standard than the actual government?
SPEAKER 04 :
The government should be held to the highest of standards. That’s sacred money. That’s the people’s money. that we’re sending to them. Okay, when we come back, AI, AI, and more AI. This is the Best Stocks Now show. And welcome back here to the second quarter of today’s Best Stocks Now show. We’ve got a little bit of a downdraft here in the market. But consider the NASDAQ three times. Just buy and hold it. You could make a case for buy and hold, Barry. Just don’t look at it every day. 36% per year. Do the math. Build yourself a nice little spreadsheet. Take $100,000 and compound that by 36% a year over a 10-year period of time. No wonder that thing has grown to be $26 billion. Those are some good management fees they’re earning off of that ETF.
SPEAKER 03 :
I’d have to research what would it look like if you held it in 2022, right? Because at some point, I think what they’d do is they’d eventually do some reverse stock splits because if you have, say, three times what the NASDAQ was down, what, close to 35%, right, in 2022? So three times 35 is over 100.
SPEAKER 04 :
Let me look real quickly. We should have that data in the Best Stocks Now app. The chart should have got weird. 2022, because we adjust for splits. Okay, so it’s TQQ. I thought it was S. SQQ is triple short the NASDAQ.
SPEAKER 03 :
Yeah, that’s not a fun one. TQQQ, which I guess makes sense.
SPEAKER 04 :
Okay, here’s what I show, down 89% in 2022. That’s what I show. Okay, but let’s average it out now. Who could sleep through an 89% drop? Yeah, right, exactly. Holy cow. But 10-year average, 36.4.
SPEAKER 03 :
The stock price went from 81 to 81 a share.
SPEAKER 04 :
It lost 90% of its value. So if you had a million dollars, it went down to 100 grand that year, right?
SPEAKER 03 :
Yeah, I mean, it went to the lowest, you know, $17 basically from 80, you know, at one point it was around 83, 84.
SPEAKER 04 :
Here’s where we blew it, not buying it in January of, when we put out the buy on the NASDAQ in January 2023.
SPEAKER 03 :
Triple Q. That’s a good one for the incubator portfolio, the best drawer portfolio.
SPEAKER 04 :
It’s up 49% over the last 12 months versus the market 21.5%. And in 2023, you had 193% return after that 90% drop. It’s a roller coaster.
SPEAKER 03 :
Well, and that’s what we were talking about. I was thinking, because they said at the presentation that there’s $25 billion right in that strategy. And I’m like, man, that sounds like a lot. But then I started thinking, I’m like, well, it might only have been $10 billion in it two years ago. Well, I bet a lot of money comes and goes.
SPEAKER 04 :
A lot of money comes and goes because people use it as a trading. I doubt that very few people owned it for 10 years.
SPEAKER 03 :
Right.
SPEAKER 04 :
My hat is off to them. And you know what? You say it’s been around 25 years or 15?
SPEAKER 03 :
It was actually their 15th year anniversary. And like I said, I learned that it’s the largest leveraged ETF out there.
SPEAKER 04 :
I’m adding 15-year and 20-year and 25-year returns to the app. I have the numbers here. I just haven’t put it in the app yet. So it will be interesting to see what the 15-year, since inception, since the day they brought it public.
SPEAKER 03 :
Yeah, I mean the 10-year. So the math on the 10-year, it’s up 1,738%. There you go.
SPEAKER 04 :
Okay, EU launches 200 billion AI investment plan. One of the questions I was asked when I was interviewed by the CEO of Granite Shares, Will Ryan, back in December was, Bill, do you think AI has played out here? I said, no, not at all. I think it’s in the early stages. And I think I was pretty much right. I did put that interview. I found that interview. I put it up on the newsletter on Friday. And we’ll have to put it on our website somewhere. Bill called it exactly. Did they interview you guys?
SPEAKER 03 :
No, yeah, no interview this time because you had the, basically it was kind of the tactical team there who, you know, they’re the math whizzes that put all the, you know, put the math together behind, you know, three times leverage or the other way, right? So, you know, you’ve got to hedge out those. You’ve got to find that contract and how to make it work because you want the least amount of tracking error, right? You don’t want it three times fun that, you know, two and a half times.
SPEAKER 04 :
Now, okay, we had, you know, Trump announced, what, a couple weeks ago, the $500 billion initiative in AI. I don’t think it’s going to be that big, but that was SoftBank and Sam Altman. Now the EU, or yesterday, France announced a $200 billion AI initiative. The EU launched a $200 billion AI initiative. So I don’t think at all that AI has played out. It was funny yesterday. You know, Elon Musk, he should have never sold his stake. Him and Altman started. open ai and i think they had their differences and i think maybe that must doesn’t have any investment in open ai anymore but he did put up an unsolicited bid he says 97.4 billion a group led by elon musk made an unsolicited bid for the non-profit entity, which I don’t think it’s non-profit anymore. And Altman said, no thanks, you know, OpenAI is not for sale. But, you know, look, it’s worth $100 billion, somewhere in there right now.
SPEAKER 03 :
It’s an interesting dynamic.
SPEAKER 04 :
I’ll say.
SPEAKER 03 :
I heard this morning, I mean, they’re going back and forth. I try to stay out of some of the fray, but… I mean, you just had, what, it was only a couple weeks ago, right, where you had essentially Altman and a couple others with, I think, was it Larry Ellison, I think? Yeah, Ellison and SoftBank. Yeah, with Trump, and then now you’ve got this kind of… feud that’s kind of re-fired again you know trump just said you know elon doesn’t like certain people he doesn’t like altman oh and altman said today was talking about you know this morning was you know i heard a quote he’s talking about his pretty talking about his personality they feel sorry for elon i’m like it’s kind of a little bit of a scary guy is that altman so anyway no
SPEAKER 04 :
It says right here, Musk has no investment in OpenAI anymore. He has his own. Is it Grok? I think it’s Grok. Okay, here’s the boomerang effect. Fox is investing in Red Seat Ventures. which is a podcast site that features Tucker Carlson, Megan Kelly, and Bill O’Reilly. Okay. Those were all people that once worked for Fox. I was on Fox News Channel in prime time with Megan Kelly.
SPEAKER 03 :
Yeah.
SPEAKER 04 :
Talking all about, let’s see, it was Cirque, let’s see, it was the, What was it? Solyndra. Solyndra in the Silicon Valley, which was a big scam of solar. They got all kinds of federal money, and the money went up in smoke. And I just happened to have a contact that told me about the story, and we… I sent Fox the info, and within a week I was on Fox with Megyn Kelly. I’ve got the picture of it. But here they are investing in Tucker Carlson, Megyn Kelly, and Bill O’Reilly. It’s like the exile island. All right. We’ll be right back. We’ve got a lot of individual stocks to talk about today.
SPEAKER 05 :
I just don’t understand anymore. This is Bill Gunderson.
SPEAKER 04 :
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 07 :
And welcome back to the second half of today’s Best Docs Now show. Well, the market has closed the gap here somewhat.
SPEAKER 04 :
At least the NASDAQ has. It’s down just seven basis points right now. I’m going to see, though. It doesn’t look as good underneath the surface, however. I’m seeing some pretty big sell-offs in AI today.
SPEAKER 03 :
i’ll tell you what talking about meta i mean talking about a streak 16 days yeah 16 days and you know it’s barely in the green right now i was just looking at it given that the nasdaq is down but yeah it’s a 16 day streak uh maybe the longest streak ever i know it’s since 1990 so yeah basically since the data i believe it may be the longest so pretty impressive to uh zuckerberg but you know there’s
SPEAKER 04 :
I’m seeing a big sell-off in AI today. I mean, look at that chart, by the way.
SPEAKER 03 :
Look at the chart.
SPEAKER 04 :
Astera, Vistra, Constellation, Arista, and Spotify is down 2%. So I’m seeing a lot of the momentum stocks selling off today despite the NASDAQ closing the gap here. Okay, quantum computing. Let’s come back to that for a minute. There is a private company out there that is currently being valued. Let’s see. Valued $750 million to $1 billion. It’s called QERA. Google SoftBank Among Investors in Quantum Computing Startup. It was actually started at MIT. They don’t have a football team, I don’t think, Barry, but they have some pretty… If they did, they would pass a lot. They have some pretty… Yeah, they’d be running Air Coriel, you know, wide open offense, you know, a lot of fun. Anyways, keep an eye on this. But this just tells you… This company already has tens of millions in revenue from several customers, including Japan’s National Institute of Advanced Industrial Science and Technology. Quantum computing has become a hot topic on Wall Street, thanks in part to recent advancements made by Google, which obviously had that Willow quantum chip. And I continue to watch stocks like IONQ and QBTS and QUBT and RGT, Rigetti. They’ve been struggling, but they have made up quite a bit from the low that they hit after the CEO of NVIDIA, Jensen Wang, hit them upside the head saying… saying quantum computing was 20 to 30 years out. Well, if that’s the case, these companies have already invested. They raised $230 million in a matter of weeks, said Q-era CEO Andy Ori. So there’s a lot of buzz around quantum computing. Apparently this company… has cleared some of the technical hurdles that have been in the way, technical milestones. And so we’ll keep an eye on this one, but I think it’s good to know that this is going on in the private sectors, the private area. of the market right now. Okay, here’s one that Nvidia is investing in. You know, anytime Nvidia invests in a company, in fact, I added it to my app today. This stock is up 64% today. Firefly Neuroscience. Firefly Neuroscience is headquartered in Kenmore, New York. They develop neuroscientific solutions for mental illnesses and neurological disorders using technology and AI. You know, I want to say that maybe one of our followers or listeners tipped us off to this talk. And that obviously went right over my head. But I did add it to the app today. It’s only a $40 million company. That’s what we call. That’s not even quite a micro cap.
SPEAKER 03 :
That’s not even a small cap. I mean, that’s micro cap. Micro cap.
SPEAKER 04 :
And even I call them bottle caps underneath that where, you know, I knew a guy that used to collect bottle caps. He was a heavy drinker. He had a lot of bottle caps from different beers around the world and all this. NVIDIA Connect to include Firefly… They call it a nano cap. Okay, there is a word. Underneath micro cap, it’s nano cap. So maybe I need to create… I’m going to make a note to self in the app. We’re going to create a nano cap. I’m going to say that’s probably under $100 million. I’ll have to get the definition of what that is.
SPEAKER 03 :
And those definitions are always interesting because we’ve talked about a large cap nowadays and basically a mega cap, right? I mean, we’ve got companies out there that are $3 trillion. It breaks the scale of what used to be published. Yeah, well, I mean, we never had trillion dollars. Right, exactly.
SPEAKER 04 :
It almost seems like there needs to be a, well, mega cap. I don’t know if you can go any bigger than mega-cap.
SPEAKER 03 :
I mean, mid-cap in my head nowadays would have probably classified as a small, large cap in the past.
SPEAKER 04 :
Well, I mean, when you cross $100 billion, that used to be a mega-cap. But if you take $100 billion, that’s nothing compared to $3.7 trillion. So, you know, I have to keep moving the goalposts all the time in the app because yesterday’s large cap is now a mid cap and yesterday’s mega cap. Probably is now a large cap stock. Okay, Astera Labs is in the news today. Now we’re going to start getting into earnings. Astera Labs has got a lot going on for itself. It is one of the chosen few in the ultra growth portfolio, which is up double digits so far this year. And, you know, the Ultra Growth Portfolio, go ahead, look at it. Since inception, I have meticulously kept track of every single buy and sell. I created this portfolio for Seeking Alpha for my subscription model there. And we’ve kept records since inception, 2019, January the 1st. So it now has a five-year-plus track record. It’s done pretty well when you put it up against the S&P 500. Of course, we have it shown if you took out the maximum fees every year versus what you were just trading it on your own in your own portfolio. But Astera is one of those stocks we own. They designed semiconductor-based connectivity solutions to unleash the potential of cloud technology. And AI infrastructure, okay, there’s a couple of buzzwords. And I just have to say that Astera has got that kind of growth that big stocks are made of. Whether or not they follow through, it’s flat after earnings. It’s actually down 2%. but their last three quarters of four quarters of sales up two hundred and seventy percent up six hundred nineteen percent up two hundred and six and up one seventy nine take that dupont uh… out of santa clara california i think we have a client uh… that works for astera labs uh… believe so that’s the course were heard in that uh… neck of the woods there on k dow radio where we have a lot of followers i’d love being on that station I’ve listened to that station for 20 years myself. Every time I visited the Bay Area, I would turn to KDAO. Astera Labs is down a little bit today, but getting some good reviews here. One of the analysts here from, let’s see, what company is he with? He’s got a buy target on it and says their AI prowess continues to shine. So I think this is one that we’re patient with. They are a big, big player in that big, big space, that AI infrastructure space and the cloud. So ALAB. has reported earnings, okay?
SPEAKER 03 :
Yeah, they’re in that, you know, think of it as sectors and ecosystems, right? They’re in that AI ecosystem.
SPEAKER 04 :
Speaking of which, SMCI had a big day yesterday out of nowhere, Supermicrocomputer. I just happened to notice it, and it’s been very controversial. We have clients that work there, too. Supermicrocomputer had a huge day yesterday, and there is a two-time Supermicrocomputer brought to you by Granite Labs, or Granite Shares. It’s down 4%, and they’re going to report today after the close. That could be a good one. Get the popcorn ready for that one. And then you’ve got your soggy stocks, always soggy stocks. You know, we have to put them up by comparison. And, you know, at one time, I mean, Coca-Cola was probably one of the greatest inventions of all time. We had a client in Atlanta. That was one of the most interesting. Their son was the curator of the Coca-Cola Museum. Can you imagine? Now, that’s on my bucket list.
SPEAKER 03 :
I think it’s World of Coke, I think.
SPEAKER 04 :
That is on my bucket list. Just to see, I mean, I remember the old billboards, the signs on barns. All of that stuff is worth a lot of money now, Coca-Cola memorabilia. I’ve seen the old Coca-Cola coolers, right? I mean, it goes on and on and on. But the bottom line is, in today’s world, they had a good quarter, but their sales were up 6% year over year. That’s organic growth, 6%. It’s been about 3% over the last several quarters. So we’ll call this a good quarter, but expect single-digit growth and returns in the stock, investing in a company growing at this rate in today’s world. It’s up 3.4% on the day. We’ll be right back.
SPEAKER 08 :
You gotta go where you wanna go, do what you wanna do, and live forever. You gotta go where you wanna go, do what you wanna do, and live forever.
SPEAKER 04 :
And welcome back here to the final segment of today’s Best Stocks Now show. And our next earnings report comes from the 44, number 44 rank out of just over 5,000 stocks. Definitely a stock of today. Okay, we can go back to the Sears catalog. And, in fact, you know, I took all you guys on a tour. Were you on the carriage ride downtown? Yeah, no, we saw the Roebuck house. Yeah, so there’s a couple of them. Downtown Charleston is gorgeous. Okay, what can I say? To take a carriage ride down the streets and see some of those classic southern homes are just gorgeous. It’s just a beautiful little city. No wonder so many people come here to visit us. And they had some Roebuck houses there. uh that people actually bought the plans out of the sears catalog like what a hundred years ago or something like that yeah it would show up as an erector set i think it may begin i don’t know they said maybe 20s or 30s yeah so about 100 years ago would show up so they would you know everything would show up it was like a kit and you put your house together okay now okay we go from the sears catalog then we started to get some of the great department stores and I don’t know if you got to Macy’s, which is a whole square block downtown New York City in Manhattan. And, of course, Saks Fifth Avenue. Walked by one of those. Woolworth’s and some of the great general stores of all time, et cetera, et cetera.
SPEAKER 03 :
The best is the real thin escalators, which are on my mind.
SPEAKER 04 :
We were thinner back then.
SPEAKER 03 :
Now we’re wider.
SPEAKER 04 :
That’s why we need Lily’s Zamp Bound. Then we went to the, you know, we started to put stores together in areas and called them malls. I remember the first mall. Well, in San Diego, yeah, Mission Valley Mall and then the Fashion Valley Mall. Then we had one come in downtown, which is no longer there, believe it or not. It got wiped out by… online online sales okay so we went from these general stores to these giant department stores we got into mail order type stuff out of the sears catalog and now we’ve got shopify okay which is the next generation i consider shopify one of the great stocks of all time and we owned it way back when in the early days of shopify Then they kind of had to sort things out. They had trouble being profitable there for a long time, coming up with the model. And let’s not forget eBay. eBay was definitely part in there in the evolution with the online bidding for stuff. eBay is still around. Etsy is another one that’s pretty big, selling online homemade wares and whatnot. But Shopify is a mammoth company.
SPEAKER 03 :
uh out of canada actually i think ontario yeah ontario canada just they give these brick and mortar yeah they give these brick and mortar places you know i mean that was a big thing during covid where you had you know uh you know call it your mom and pop shop or just your independently owned boutique or whatever your whatever wares you were selling and They had zero online presence, and you could basically use them to get you going pretty quickly in terms of online sales, and they’re an online marketplace.
SPEAKER 04 :
Think about the overhead you save. I mean, it’s not to go to one of these big malls and rent a space. Now a lot of these malls are deserted. They’re ghost towns. We have a big one in North Charleston that’s just… Maybe there’s a pool hall in there or a bowling alley or something, but no longer are the anchor tenants there, JCPenney and Macy’s and all of these, etc.
SPEAKER 03 :
More medical offices than anything, no?
SPEAKER 04 :
Yes, and Shopify is an online mall, okay? $153 billion. I have to admit, I’ve never ever bought anything online. I’m putting that on my do-to-do list today. I’m going to visit Shopify’s website and see what all they have to offer.
SPEAKER 03 :
I haven’t bought anything on Shopify where I knew it was there. So, you know, I’ve gone to a website, right, and, you know, maybe I’ll buy something. And then the back-end pay feature part, you know, pay side of the business, right, is, you know, the payment side is Shop or Shopify. And so… It’s almost like they’re doing work for this company on the back end. It didn’t necessarily attract me to them, but they’re helping link them up and get paid.
SPEAKER 04 :
It’s always traded at a high multiple. It’s 83 PE ratio, but they reported earnings that were up 167% year over year. $0.64 versus $0.24, that’s pretty good. That’s a really good quarter. If they can keep that up, they’re on track. They’re up over $2, maybe $2.50 per share in annual earnings now. We’ll see if they can keep that up. But I thought they had a really good quarter. Their sales were up 26%. They did $2.1 billion in sales versus $1.7 billion for the same quarter last year. Shopify, in my book, is one of the chosen ones in today’s world because they really don’t have a competitor out there. A lot of wannabes, a lot of people tried. But it just seems once you get that dominant spot in a space like this, it’s very hard to encroach upon it. So we do own Shopify. It’s not a dividend payer. It’s not a small cap anymore. It’s $153 billion. It’s a large cap company.
SPEAKER 03 :
I’m interested to read the annual report. Yeah, I’m interested to read the comments because they’re a Canadian company, and I’m interested to see if potentially any of the tariffs could affect them in a certain way. Yeah, I don’t know if the tariffs will affect them or not. Yeah, I’m not sure how all that ties together. That’s why I’m interested to read some of the analyst questions at the end of the transcript.
SPEAKER 04 :
Yes. Okay, then last but not least, and then we’ve got to bid you a due. DuPont up 7.2%, obviously a soggy stock of yesteryear. The Pride of Delaware, I believe it’s headquartered, yeah, Wilmington, Delaware, home of Joe Biden and DuPont, a big chemical company, but not quite the growth engine. They’re a 7% grower, okay, not a 160% grower. All right. Well, man, we had a record week last week of people signing up for the four-week trial. I would just like to say to all of you that are getting the trial, if you have a question, just respond to the alert that I send out, and I will try to answer your question. You have access to a guy that’s been sitting behind the trading desk here for 25 years and was part of ringing the bell on the NASDAQ. You know, I didn’t get my bell rung, but I rang the bell back in December of last year. I might be able to answer a few questions for you. Just respond to any of the emails I send out. To sign up for the four-week trial, go to GundersenCapital.com. Say, hey, I don’t got time. I got a job to do. I’m retired, man. You do it. Give us a call, 855-611-BEST. 855-611-BEST. Set up an appointment. with the team here at Gundersen Capital Management. Have a great day, everybody.
SPEAKER 02 :
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.
