I actually LOVE buying falling knives. Not broken companies. Stocks where sentiment is awful, the chart looks disgusting, and almost nobody wants to touch them. Here are 5 falling knives Iād actually catch: 1/ Nike | $NKE Nike has plenty to fix, but one of the strongest brands in the world trading with this much pessimism is exactly the kind of turnaround setup that interests me. 2/ Snap | $SNAP Snapchat still has a massive audience, and if monetization finally catches up, todayās valuation could look ridiculous. 3/ Netflix | $NFLX The stock has gotten crushed while free cash flow and profitability keep moving in the opposite direction. 4/ Uber | $UBER I think the market is focusing way too much on the stock weakness and nowhere near enough on how quickly earnings and free cash flow are scaling. 5/ SoFi | $SOFI The stock can keep getting hated, but as long as SoFi keeps growing members, revenue and earnings, Iām happy owning the disconnect. Falling knives arenāt automatically opportunities. But when the stock looks broken and I still believe the business is getting better, thatās usually when I get the most interested. Buy broken stocks, not broken companies.
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8 Comments
Julian @julian_invests Ā· 12d
I donāt agree with you on snap. Most of the app users are kids/teens who arenāt very willing to spend money on Snap premium. Thereās also basically nothing you gain from buying it even if itās just 2 bucks a month.
Buythedip @buythedipzw Ā· 14d
One of these will hit big ššŖš»
Daniel Ludlum
@luds09 Ā· 14d
BROS is another one
Julian @julian_invests Ā· 12d
The market doesnāt like Uber right now because once there are self driving vehicles, thereās no real need for Uber anymore. Uberās only hope is that because theyāve already got a lot of customers that theyāre going to be the app used to order those vehicles. Since nobody wants to compare prices between 3 apps or more and self driven vehicles dont need to get paid unlike drivers.
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