View the current "Sell America" market downturn as a buying opportunity, particularly in high-quality US technology stocks. Consider adding to positions in Amazon (AMZN) and Google (GOOGL) on any weakness, as their long-term fundamentals remain strong despite political noise. Duolingo (DUOL) presents a high-conviction opportunity after its significant sell-off, as its underlying user and revenue growth metrics are still robust. Dips in financial leaders like MasterCard (MA) are also attractive entry points, despite market fears of a flight from US assets. For Netflix (NFLX) investors, the key catalyst is the pending all-cash acquisition of Warner Bros. Discovery (WBD) at $27.75 per share, so monitor deal progress closely.

US Market & "Sell America" Theme

• The podcast host discusses a "Sell America" trade that is causing US markets, particularly the S&P 500 and Nasdaq, to sell off.
• The sell-off is most pronounced in large US tech companies like Nvidia (NVDA) and Amazon (AMZN).
• The primary driver for this bearish sentiment is political rhetoric from President Trump regarding Greenland, sparking fears of a new trade war with Europe.
• Analysts from firms like Evercore ISI are framing this as a "Sell America" trade, suggesting global investors will apply higher risk premiums to US investments.
• Investor Ray Dalio is mentioned, reiterating his belief that US allies will be less inclined to hold US debt and assets, preferring hard currencies like gold.

Takeaways

• The host strongly disagrees with the "Sell America" thesis and views the market downturn as a buying opportunity.
• He believes that despite short-term political noise and trade disputes, the US remains the best country to invest in for long-term growth and alpha generation.
• The core message is to ignore the fearful headlines and focus on the strong fundamentals of great American companies.
• Past periods of fear and chaos, like the tariff sell-off in April 2025, proved to be the best times to invest in US stocks.

Duolingo (DUOL)

• The host revealed he just purchased another $5,000 worth of DUOL, bringing his total position to $20,000. The position is down significantly, between 50-60% from his initial purchase price.
• The stock's major sell-off was triggered by missing Wall Street's expectations for "booking growth." Duolingo reported 22% growth, while the expectation was 27%.
• Despite the market's punishment, the host believes the sell-off is an overreaction and the company's fundamentals remain strong.
  • Revenue Growth: 40%
  • Subscription Revenue Growth: 46%
  • Daily Active Users Growth: 35%
  • EBITDA Growth: Over 100% year-over-year
  • Free Cash Flow Per Share Growth: Nearly 50% year-over-year

Takeaways

• The host has a strong bullish conviction on DUOL, viewing the current low price as an attractive entry point.
• He believes the market is overly punishing the stock for a slight miss in growth expectations, ignoring the powerful underlying growth in users, revenue, and cash flow.
• The investment thesis is to continue holding and buying more as long as the company's fundamental key performance indicators (KPIs) point in the right direction.

Netflix (NFLX)

• Netflix is due to report earnings, and the host expects the results to be strong, citing 17% year-over-year revenue growth last quarter and significant operating leverage (flat costs, growing revenue) leading to "enormous growth in free cash flow."
• The earnings report is largely overshadowed by the pending acquisition of Warner Bros. Discovery (WBD).
• Netflix has revised the deal to be an all-cash transaction valued at $27.75 per WBD share. This change is intended to provide certainty and accelerate the deal's timeline.
• A shareholder vote on the transaction is expected by April 2026.

Takeaways

• While the host is bullish on Netflix's core business, he believes the upcoming earnings report is less meaningful than usual.
• The most important factor for investors is the outcome of the Warner Bros. Discovery acquisition.
• Investors should pay close attention to the Q&A portion of the earnings call for any new insights or clarity on the acquisition's progress and management's strategy.

Amazon (AMZN)

• Amazon is highlighted as a primary victim of the "Sell America" trade fears, as it is directly impacted by potential tariffs and trade disputes.
• The host believes the stock is already underpriced and that the current sell-off is a mistake.
• The argument is that consumers will not abandon Amazon because its convenience is too valuable, making its business resilient to this type of political pressure.
• CEO Andy Jassy was quoted discussing AI's impact, stating it will replace some rote work but ultimately lead to the creation of new, higher-value jobs and allow the company to invent and build new businesses faster.

Takeaways

• The host sees the current weakness in AMZN stock as a buying opportunity.
• The long-term investment case for Amazon is based on its durable consumer value proposition and its ability to innovate and expand into new businesses, a process that will be accelerated by AI.

Big Tech & AI (GOOGL, MSFT, META, AAPL)

• Google (GOOGL): The host is very bullish, stating the company is "getting better by the day" and praising the integration of its Gemini AI into products like Gmail. He sees it as a company to add to on dips.
• Microsoft (MSFT): Mentioned as a fundamentally strong company whose long-term trajectory over the next 15 years will not be impacted by short-term trade disputes.
• Meta (META): The company's ambition is to build "personal super intelligence." The host notes that this is a high-upside endeavor with a limited downside; if they fall short, the massive investment in computational power can be repurposed to improve their core advertising business.
• Apple (AAPL): Also mentioned as a competitor in the race to create a personalized AI assistant, leveraging its iPhone ecosystem.

Takeaways

• The major US tech giants are all racing to develop personalized AI, or "super intelligence."
• The host views sell-offs in high-quality tech names like Google as opportunities to increase positions.
• The long-term vision and fundamental strength of these companies are seen as far more important than short-term political headlines.

Other Stocks & Investment Themes

• Chris Hohn (TCI Fund): The podcast highlights the strategy of this highly successful hedge fund manager as an example of alpha generation.
  • Strategy: Hold a concentrated portfolio of high-quality companies for the long term.
  • Key Holdings: He has large stakes in aerospace companies like GE Aerospace (GE), Safran, and Airbus, betting on rising military spending.
  • Contrarian View: Notably, he has avoided the AI hype stocks like Nvidia (NVDA) and Palantir (PLTR) while still crushing market returns.
• Financial Duopolies (MA, SPGI, MCO, EFX):
  • Companies like MasterCard (MA), S&P Global (SPGI), Moody's (MCO), and Equifax (EFX) were all selling off.
  • The market is pricing in fears of fewer global deals and a flight from US assets.
  • The host remains "so bullish" on MasterCard (MA) and views dips as entry points.
• Gold:
  • The price of gold is spiking.
  • This is attributed to investors like Ray Dalio who believe global partners will shift from US assets to hard currencies amid rising geopolitical tension.
• Resilient Performers:
  • Costco (COST) and Texas Roadhouse (TXRH) were mentioned as being in the green despite the broader market sell-off. Texas Roadhouse was noted as being "on a tear recently."