Consider investing in high-growth companies whose stocks have been unfairly punished despite strong business performance. Digital health platform Hims & Hers (HIMS) is presented as a top opportunity, growing at 47% year-over-year while trading at what is described as a "stupid cheap" valuation. In the crypto sector, CleanSpark (CLSK) is highlighted as a deeply undervalued Bitcoin miner, trading at just 2.3x its projected 2025 adjusted earnings when accounting for its Bitcoin holdings. CLSK also has a potential catalyst from its expansion into AI computing, which the market is currently ignoring. Finally, fintech disruptor SoFi (SOFI) is another name to watch, with growth expected to accelerate and benefit from brand visibility during the upcoming World Cup.

Hims & Hers Health, Inc. (HIMS)

• The speaker is extremely bullish on HIMS, calling its current valuation "stupid cheap" and a "steal at these levels."
• The stock has been performing poorly, described as the "market's favorite punching bag," despite the company executing "so well."
• The company delivered an "amazing Q3" that surprised everyone with its strength, yet the stock continued to fall.
• The speaker believes the market misunderstands the business, having dismissed it sequentially as just an ED pill company, a marketing company, and now a GLP-1 company.
• Business Model: The speaker presents HIMS as a comprehensive digital health platform combining:
  • Digital doctor consultations
  • A digital pharmacy
  • Remote lab testing
  • AI-driven customized medication
  • A direct-to-consumer model that bypasses insurance.
• Disruption Potential: The speaker compares HIMS to a big tech company, suggesting it could disrupt the pre-Medicare insurance industry, local doctor's offices, and pharmacy networks by offering a better, cheaper service for most common health issues.
• Financials: The company is reportedly growing at 47% year-over-year for the next 12 months, with strong and growing EBITDA margins.

Takeaways

• The speaker sees a major disconnect between HIMS's strong business performance and its poor stock performance.
• The investment thesis is based on the belief that HIMS is a long-term disruptor in the healthcare space, and the market is currently failing to recognize its full potential.
• For investors, the current low price could represent a significant buying opportunity if you believe in the company's disruptive vision and its ability to continue executing on its business plan.

SoFi (SOFI) & Robinhood (HOOD)

• The speaker groups SOFI and HOOD as "neobanks" that are the "future" of banking for younger generations, disrupting traditional branch-based banks like Wells Fargo and Bank of America.
• SoFi (SOFI):
  • Is expected to gain significant brand visibility from the upcoming World Cup held at SoFi Stadium.
  • The speaker believes the stock should be trading "a little bit higher."
  • Growth is expected to accelerate as they re-integrate crypto services.
• Robinhood (HOOD):
  • Is successfully attracting older customers (in their 60s) with its innovative deposit match programs.
  • The speaker suggests HOOD might be "fairly valued roughly" at its current price.
• Growth: Both companies are growing at over 30% per year. The speaker notes the market is indiscriminately selling these companies despite their strong growth.

Takeaways

• The core insight is that neobanks are a major growth trend, taking market share from legacy financial institutions.
• SOFI is presented as having a potential near-term catalyst with the World Cup and renewed crypto offerings, making it appear slightly more undervalued in the speaker's view.
• HOOD is also seen as a strong performer, successfully expanding its user base beyond its initial young demographic.
• Investors interested in the fintech disruption theme might see the recent sell-off in these names as an attractive entry point.

Nebius

• The speaker is extremely bullish on Nebius, viewing it as a potential "AWS of AI compute."
• Key Differentiator: Unlike competitors who just provide hardware ("bare metal"), Nebius provides a full software stack, which has helped it secure major partnerships.
• Partnerships: The company has deals with two hyperscalers: Microsoft (MSFT) and Meta (META). The speaker notes the market's irrational reaction, where the stock rose on the Microsoft news but fell on the Meta news.
• Explosive Growth Guidance: The speaker highlights a massive revenue projection:
  • From $500 million in trailing 12-month revenue.
  • To a guided $7 to $9 billion by the end of 2026.
  • This represents a potential 16x revenue increase in roughly two years.
• Valuation:
  • Based on this growth, the speaker argues the stock is "too cheap" and could be trading at less than 2 times revenue within a year.
  • The current valuation is also seen as misleadingly high because it includes valuable assets like AV Ride (a self-driving tech company) and a 28% stake in ClickHouse (a potential competitor to Snowflake and Databricks). Adjusting for these assets would make the core business appear even cheaper.
• Leadership: The company is led by the former management team of Yandex, the "Google of Russia."

Takeaways

• The investment thesis for Nebius is centered on hyper-growth in the AI compute space, driven by a superior product and strong partnerships.
• The speaker believes the market is completely overlooking the company's forward-looking guidance and the "hidden value" of its other assets.
• This is presented as a high-risk, high-reward opportunity. If the company achieves its ambitious revenue targets, the current valuation could seem extremely low in hindsight.

CleanSpark (CLSK) & Bitcoin Miners

• The speaker is very bullish on Bitcoin miners, using CleanSpark (CLSK) as the prime example of a company being unfairly punished by the market.
• Market Disconnect: CLSK dropped 15% on a day when Bitcoin (BTC) only dropped 5%, showing an exaggerated negative correlation.
• Valuation: The speaker presents a valuation case suggesting CLSK is deeply undervalued:
  • It trades at a 3.7x price-to-adjusted-EBITDA multiple based on full-year 2025 estimates.
  • This multiple drops to just 2.3x after subtracting the value of the 13,000 Bitcoin the company holds on its balance sheet (using a $86,000 BTC price for the calculation).
• Industry Dynamics: A recent drop in the Bitcoin mining difficulty is a positive catalyst. As less efficient miners shut down, profitable miners like CleanSpark can mine more Bitcoin.
• AI Potential: The market is said to be completely ignoring the fact that CLSK is transitioning into AI High-Performance Computing (HPC) and is in talks with two hyperscalers for a potential deal.
• This same bullish sentiment is applied to other miners like IREN and Marathon (MARA).

Takeaways

• The speaker's view is that Bitcoin miners are being sold off excessively and do not reflect the value of their underlying operations, their Bitcoin holdings, or their potential pivot to the AI sector.
• CleanSpark is highlighted as a particularly cheap stock, trading at a very low multiple of its projected earnings, especially when accounting for its crypto assets.
• For investors bullish on Bitcoin and the AI infrastructure theme, miners like CLSK could offer leveraged exposure with the potential for significant upside if the market re-evaluates their worth.

Other Mentioned Growth Stocks

• The speaker uses Zeta Global and Rocket Lab as further examples of the market's irrational behavior, where good companies with positive news are being sold off.

• Zeta Global (ZETA):

  • The stock was down 5% on the day of the recording.
  • The speaker likes the company, describing it as a "Palantir for marketing" due to its sophisticated data platform.
  • Sentiment: Bullish on the company's technology and business model.

• Rocket Lab (RKLB):

  • The stock was down 10% despite having a "huge success with a major mission."
  • This is presented as a prime example of the market disconnect, where positive fundamental developments are ignored or punished.
  • Sentiment: Bullish on the company's operational success, but frustrated with the market's negative reaction.

Takeaways

• The broader theme is that many high-quality, small-cap growth stocks are on sale due to indiscriminate selling that is unrelated to their individual performance.
• Investors who are willing to "stock pick" and focus on company fundamentals rather than market sentiment may find opportunities in names like ZETA and RKLB.
• The key insight is to look for companies that are executing well but whose stock prices have been unfairly beaten down, creating a potential margin of safety.