The creator highlights record profitability and net profit margins for US corporations, indicating a strong economy and a bullish outlook for stocks.
Source Post
This Stock Beat Earnings by a Mile... and Still Crashed (What Wall Street Got Wrong)
Aug 9, 2026
The creator discusses the strength of the AI trade and the market rally, noting that the S&P 500 appears cheap at 21 times earnings given the current growth rates. The conversation also touches on the negative impact of leveraged ETFs and derivatives on market volatility, particularly affecting stocks like Bloom Energy and SanDisk.
Linked Mentions
Tickers discussed in this post
A Chinese mayor expressed a need for John Deere tractors to modernize farming practices, highlighting a demand for American agricultural equipment.
Nvidia is mentioned as a company that has experienced similar market reactions where strong performance was met with stock declines, suggesting a pattern of negative sentiment.
Intuit, makers of TurboTax and QuickBooks, is trading at 10x earnings and is being treated as an AI casualty, suggesting it is undervalued.
Salesforce.com is mentioned as a software company that the market has left for dead, implying it might be undervalued.
Service Now is mentioned as a software company that the market has left for dead, implying it might be undervalued.
Oracle, despite being treated as an AI casualty and trading at low multiples (13-14x earnings), is seen as undervalued given its potential.
Corning is mentioned as a company that makes optical transmission lines, part of the ecosystem enabling AI.
Coherent, which makes lasers for optical transmission lines, has had a huge run but can still go higher due to incredible growth.
GE Vernova has a large order backlog and is experiencing high growth, trading at a reasonable valuation relative to its growth rate.
