Investors should consider Duolingo (DUOL) as it expands into math and music, offering a high-growth entry point following an "AI panic" sell-off that has left its valuation attractive. Kaspi.kz (KSPI) provides a unique combination of a 5% dividend yield and 32% growth, serving as a high-margin "super app" play in the emerging Kazakhstan and Turkish markets. For apparel exposure, On Holding (ONON) is currently the cheapest growth-adjusted stock in its sector, maintaining 64% gross margins while competitors like Nike struggle. Xpeng (XPEV) offers a high-risk, high-reward opportunity in the EV space, trading at just 1x revenue with significant European expansion expected to drive triple-digit growth by 2026. Focus on these three sectors—education tech, regional fintech, and premium consumer goods—to capture high-conviction growth at reasonable valuations.

Duolingo (DUOL)

• Duolingo is a leading language-learning platform that is expanding into broader education sectors, including math and music. • The stock recently bounced back 40% from its April lows, which were caused by market fears that AI would replace language apps. • Key Metrics: The speaker notes an EV/GP/RG (Enterprise Value / Gross Profit / Revenue Growth) ratio of 0.27, which he considers cheap (under 0.3). • Growth Strategy: Beyond language, the company is leveraging its "addictive" app design to disrupt early childhood education. • Sentiment: Bullish. The speaker compares its potential long-term scale to that of Netflix.

Takeaways

• Market Overreaction: The recent dip was attributed to "AI panic" rather than a decline in fundamentals; engagement remains at all-time highs. • Monetization vs. Demand: Recent flat quarters were due to internal algorithm and monetization changes, not a lack of user interest. • Diversification: Watch for the success of their non-language launches (Math and Chess) as indicators of their ability to become a general education powerhouse.

Kaspi.kz (KSPI)

• Kaspi is described as the "Super App" of Kazakhstan, dominating banking, e-commerce, and government services (licenses, insurance, etc.). • Financial Strength: Boasts an exceptionally high EBITDA margin of 70% and is predicted to grow at 32%. • Expansion: The company recently acquired Hepsiburada (a Turkish e-commerce platform) to export its "super app" playbook to the Turkish market. • Dividends: The stock pays a dividend of nearly 5%, which is rare for a high-growth tech company.

Takeaways

• Regional Dominance: Kaspi offers unique exposure to Central Asian and Turkish markets, regions often overlooked by Western investors. • Comparison: The speaker views Kaspi as similar to MercadoLibre (MELI) or Coupang (CPNG) but at an earlier, high-margin stage of its life cycle. • Income + Growth: It serves as a rare "growth" stock that also provides a steady yield through its 5% dividend.

On Holding (ONON)

• On Running is a high-end Swiss athletic footwear and apparel brand. • Valuation: It is currently the cheapest stock in the speaker's apparel spreadsheet on a growth-adjusted basis, with an EV/GP/RG of 0.18. • Performance: While competitors like Nike see falling sales and Lululemon remains flat, On Running maintains "stellar" revenue growth and high gross margins of 64%. • Risk Factors: The stock has seen recent volatility due to a CEO change and the return of the company's founders to leadership roles.

Takeaways

• Status Symbol Pricing: The brand maintains high margins because its products are viewed as status symbols in running and fashion circles. • Macro Pressures: Much of the recent price drop is attributed to rising interest rates affecting all growth stocks, rather than a failure in the business model. • Efficiency: With a "Rule of 40" score of 42, the company is successfully balancing high growth with profitability.

Xpeng (XPEV)

• Xpeng is a Chinese electric vehicle (EV) manufacturer often compared to Tesla due to its focus on software, AI, and humanoid robotics. • Valuation: Extremely low valuation metrics with an EV/GP/RG of 0.17 and trading at roughly 1x revenue. • Growth Drivers: Significant expansion into the European market is expected to drive sales, with some analysts predicting over 100% growth in Europe by 2026. • Financials: Gross margins are at 21%, and vehicle margins are around 12%. The speaker notes they are "soon-to-be profitable" on the bottom line.

Takeaways

• Scaling Phase: The company has proven its unit economics (profitable per car sold) and now simply needs to scale volume to reach overall net profitability. • Tech Parity: Xpeng is highlighted for having some of the most advanced humanoid bots in the Chinese market, mirroring Tesla’s AI-first strategy. • Geopolitical Risk: The speaker acknowledges the "China discount," noting that many investors avoid these stocks due to regulatory and transparency concerns.