Consider buying the dip in SoFi (SOFI), as analysts suggest its recent drop was unjustified following one of its best earnings reports ever. For long-term investors, the dip in Palantir (PLTR) is viewed as a buying opportunity, despite its high valuation, with some believing it could become a trillion-dollar company. In this volatile market, investors are rotating into defensive names like Verizon (VZ) for its attractive 7% dividend yield and stable cash flow. Speculative investors may look at D-Wave Quantum (QBTS), which is showing exponential revenue growth as its technology finds real-world use cases. Finally, exercise extreme caution with precious metals like silver and gold, as they are experiencing historic volatility and are not acting as a safe haven.

Precious Metals (Silver & Gold)

• The podcast highlighted a historic crash in precious metals, with silver having its "worst day in history," down as much as 35% at one point. Gold also saw a significant drop.
• The speaker noted that this massive sell-off in commodities, representing a "ten trillion swing in precious metals," occurred while the S&P 500 was "basically flat," which they found very confusing.
• The sentiment around precious metals is highly uncertain and speculative. The speaker noted that "speculation got wrecked today."
• A popular 2x leveraged silver ETF lost half of its assets under management (AUM) in a single day, going from $5 billion to $2.5 billion, indicating a massive retail outflow.
• iShares Silver Trust (SLV) was mentioned as a proxy, dropping 30% from $108 to $74 in one day.
• Theories for the crash include:
  • A "textbook top" formation after a massive run-up.
  • A flush-out of retail investors due to increased margin requirements.
  • A major bank or financial institution blowing up a trade.
  • A reaction to the nomination of Kevin Warsh as the new Fed Chair, who is perceived as a "hawk" and a believer in a strong dollar, which is typically bearish for gold and silver.

Takeaways

• Extreme Caution Advised: The precious metals market is experiencing unprecedented volatility and uncertainty. The speakers question whether buying the dip is a good idea, calling the situation "ugly" and "precarious."
• Speculative Asset Behavior: Gold and silver are currently "acting like meme coins," indicating their price action is driven by speculation rather than traditional safe-haven fundamentals.
• Potential for a Top: The price action looks like a "textbook top," suggesting the recent bull run may be over. However, the speakers also state that "time will tell to see if the buyers step back in." One guest who had puts on silver (a bet that the price would fall) saw their position become profitable.

SoFi Technologies (SOFI)

• The stock was down 7% on the day, which the speaker believed was "unjustifiably" hit in the broad market sell-off.
• The speaker's sentiment is bullish, stating they bought SoFi on the dip. They believe the company was simply "caught as a stray" and that the sell-off was not the company's fault.
• This negative price action came right after what was described as "one of the best earnings ever" for the company.
• Analysts are reportedly bullish, with William Blair quoted as saying, "we believe it is time to aggressively accumulate."

Takeaways

• Potential Buying Opportunity: The speaker and some analysts view the sharp drop as an unjustified, sentiment-driven event, creating a potential buying opportunity for a company with strong fundamentals.
• Market Disconnect: SoFi is presented as a prime example of a company with strong earnings being punished by negative broader market sentiment, a theme repeated throughout the episode.

Palantir (PLTR)

• The stock was down 3.4% ahead of its earnings report on Monday.
• The primary discussion point is its "incredibly elevated" valuation. The speakers agree that any bull case must acknowledge this "valuation stretch."
• A major risk factor is the negative sentiment around the Software-as-a-Service (SaaS) sector, which is currently in the "penalty box." The market is concerned that there is "no longer a moat" for these businesses.
• Despite the valuation and market sentiment, the speaker is not concerned about the business fundamentals and expects Palantir to "crush expectations" and provide strong guidance for its upcoming earnings.
• A technical indicator, the Relative Strength Index (RSI), was noted to be at its lowest level since the stock was priced at $6.66 in May 2022, which could suggest a potential bottom is near.
• One long-term investor on the show bought more Palantir on the day of the recording, believing it will eventually be a $2-2.5 trillion company.

Takeaways

• High Risk, High Reward: Palantir is a battleground stock with a very high valuation. The investment thesis depends on whether you believe its growth and unique products justify the premium, especially when the broader SaaS sector is out of favor.
• Earnings are a Major Catalyst: The upcoming earnings report on Monday is critical. A strong report might not be enough to fight the negative market narrative (as seen with SoFi), creating significant uncertainty in the short term.
• Long-Term vs. Short-Term: The guests with long-term conviction are using the dip to add to their positions, focusing on the company's future potential rather than the current volatile price action.

Verizon (VZ)

• The stock was up 11.8%, making it one of the best performers on a very volatile day.
• The move was attributed to a "flight to safety" as investors moved out of speculative growth assets and into "high yield, boring companies."
• The company reported strong earnings, showing it is back in "growth mode" after a heavy investment phase.
• It is highlighted as a 7% dividend yield company with very strong free cash flow.
• A guest mentioned using options spreads on a low-volatility stock like Verizon to achieve outsized returns. He turned an 11% stock move into a 100% personal return and noted a move to $50 could result in a 5x return on his specific options strategy.

Takeaways

• Defensive Play: In a volatile market, Verizon is acting as a defensive safe haven due to its high dividend yield and stable cash flows.
• Turnaround Story: The company appears to be successfully transitioning from a heavy investment cycle back to growth, which is boosting investor confidence.
• Advanced Strategy Mentioned: For more experienced investors, the discussion highlights that cheap options on low-volatility stocks like Verizon can be used in spread strategies to generate potentially high returns.

Tesla (TSLA)

• The stock was up 4%, showing significant strength and holding its momentum during a broad market sell-off.
• The discussion highlighted the battery storage (Megapacks) business as a "shining star" of the company's portfolio, holding an estimated 30-35% market share. This is seen as a key strength while waiting for other ventures like robotics to generate revenue.
• The decision to discontinue the Model S and Model X was viewed as a bullish and "ruthless" executive decision to reallocate resources away from low-selling products toward future growth drivers like the Optimus robot.
• While one long-term investor has reduced their position from an overweight allocation to about 5% of their portfolio, they remain intrigued by the company's future, particularly in robotics.

Takeaways

• Focus on Future Growth: The investment thesis for Tesla is increasingly shifting towards its ventures beyond cars, such as battery storage and robotics. The decision to axe older car models reinforces this strategic pivot.
• Relative Strength: Tesla's ability to stay green on a day of widespread selling indicates strong investor conviction and momentum in the name.

D-Wave Quantum (QBTS)

• A guest who attended a D-Wave conference came away very impressed, stating the quantum annealing technology is "real" and actively solving problems for major clients like AT&T and Anduril.
• A powerful example was cited where D-Wave's system solved a problem in 25 minutes that took a traditional computer 178 hours.
• The company is projected to report $50 million in revenue for the current quarter, a massive increase from its previous best quarter of $9 million.
• The guest who attended the conference believes the momentum is real but disclosed that they had exited their position with the intention of rebuying at a lower price. They are now re-adding to their position.

Takeaways

• Exponential Growth Potential: D-Wave appears to be at an inflection point, with revenue growth accelerating dramatically as its technology finds real-world commercial applications.
• High-Speculation Play: While the fundamental story is compelling, the stock has seen a huge run-up (from $0.50 in early 2024). The guest's action of selling to re-buy lower suggests that while the long-term outlook is positive, short-term volatility is expected.

Other Stocks & Cryptocurrencies

• CopEx (COPX): The speaker sold their position, making a 10% gain. They view it as a "silver proxy" and are not interested in holding it while precious metals are in a "precarious situation."
• Robinhood (HOOD): The stock was down 2%. A long-term investor remains "fully confident in the leadership" and is holding through the price stagnation, believing in the company's ability to innovate and execute.
• Bitcoin (BTC): The asset was up 1% and stable. One guest theorized that Bitcoin acted as a "hedge against silver" during the crash. Another guest expressed a bearish short-term view, believing we are in a "crypto winter" and that money will not flow back into crypto this year.
• NVIDIA (NVDA): Was only down 1%, which the speaker found surprising given the market carnage. Its resilience was seen as a sign of strength.
• AppLovin (APP): Down a staggering 17% and described as having been "nuked." The move was seen as incomprehensible.
• Rocket Lab (RKLB): Dipped below $80 to $78 but managed to close back above the $80 level.