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 I’d 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, today’s 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, I’m happy owning the disconnect. Falling knives aren’t automatically opportunities. But when the stock looks broken and I still believe the business is getting better, that’s usually when I get the most interested. Buy broken stocks, not broken companies.
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8 Comments
Julian @julian_invests · 27d
I don’t agree with you on snap. Most of the app users are kids/teens who aren’t very willing to spend money on Snap premium. There’s also basically nothing you gain from buying it even if it’s just 2 bucks a month.
Buythedip @buythedipzw · 28d
One of these will hit big 😇💪🏻
Daniel Ludlum
@luds09 · 28d
BROS is another one
Julian @julian_invests · 27d
The market doesn‘t like Uber right now because once there are self driving vehicles, there’s no real need for Uber anymore. Uber‘s only hope is that because they’ve already got a lot of customers that they’re 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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