Capitalize on the recent macro-driven sell-off in Nebius (NEBIUS), which is down 50% from its June peak despite secure enterprise contracts worth billions with Microsoft and Meta. View the recent drop in Hims & Hers Health (HIMS) as a temporary buying opportunity, because the pending FTC lawsuit will likely take until 2030 or 2031 to resolve while its GLP-1 and international catalysts ramp up. Accumulate shares of SoFi Technologies (SOFI) during market-wide pullbacks, as its consistent earnings beats and a strong Rule of 40 score of 67 indicate the current flat stock price is disconnected from its robust fundamentals. Use these broader market sell-offs to build positions in these discounted growth names, keeping in mind that near-term volatility and macro fears may persist. Ensure you align your entry points with a medium-to-long-term investment horizon to ride out any lingering headline risks and sentiment-driven dips.

Nebius (NEBIUS)

• Trading down over 10% on the day and approximately 50% down from its June 18 peak, driven primarily by negative macro trends and market-wide sentiment rather than company fundamentals
• Underlying business remains extremely strong with enormous expected revenue growth, significant annual recurring revenue (ARR), and binding deals including $19 billion with Microsoft and $27 billion with Meta
• Projected next 12 months revenue growth of 600% is viewed as conservative by the speaker
• Valuation is described as very cheap, trading at an enterprise value over gross profit over revenue growth (EV/GP/RG) of 0.13
• Risk factors mentioned include potential market deleveraging, margin calls, and broader macro-economic fears dictating the stock price rather than business performance

Takeaways

• Consider viewing the sharp sell-off as a macro-driven disconnect from strong underlying fundamentals, provided your investment thesis on their hyperscaler contracts remains intact

Hims & Hers Health (HIMS)

• Experienced a price drop after the Federal Trade Commission (FTC) disclosed it was moving forward with a lawsuit against the company, following a failed settlement negotiation where Hims offered roughly $15 million
• Hims strongly denies the allegations, and the speaker notes that legal proceedings of this nature typically take a very long time, with any potential financial penalty or outcome likely not materializing until the next decade (2030 or 2031)
• Business catalysts remain robust, including the ramping of GLP-1s, peptides (with six out of seven in the first wave expected by year-end or next year), international growth, and updated guidance following the Eucalyptus acquisition
• Valuation is considered very attractive, trading at an enterprise value over earnings growth ratio of 0.096
• Risk factors mentioned include ongoing legal scrutiny from the FTC and broader market-wide risk-off sentiment

Takeaways

• Treat the FTC lawsuit noise as a long-term headline risk that may take years to resolve, while focusing on the near-term business drivers like GLP-1 rollouts and international expansion if comfortable with regulatory headlines

SoFi Technologies (SOFI)

• Stock dropped significantly despite reporting outstanding, highly predictable earnings featuring revenue beats, earnings beats, and raised guidance
• Underlying business growth in members, revenue, and profits is described as exceptionally smooth with no operational dents
• Trading flat compared to five years ago despite consistent business maturation, prompting the speaker to criticize current public market dynamics
• Valuation metrics show an EV/GP/RG ratio around 0.31 (projected to update closer to 0.25), coupled with a Rule of 40 score of 67
• Risk factors mentioned include macro-economic fear dominating risk-on growth stocks, overshadowing strong underlying fundamentals

Takeaways

• View SoFi as a consistently executing business whose stock price is currently dictated by macro-driven market sentiment rather than its reliable financial performance