I Just Bought a NEW STOCK ($60,000 spent)

SUMMARY

Jeremy Lefebvre analyzes the current state of the stock market, highlighting major declines in software and tech stocks while discussing opportunities in undervalued businesses. He reveals his recent $60,000 investment in three companies and examines the potential future of Micron Technology amidst market cycles.

MAIN POINTS

• Public account gains exceed $80,000 in a challenging stock market environment, with Meta contributing significantly. [0:06]
• Meta's performance defies expectations, gaining $17,000 in a single day. [0:22]
• Major software stocks, including Microsoft, Snowflake, and Salesforce, experience significant declines over three months. [1:15]
• Discussion on stocks facing bear markets and potential investment opportunities in undervalued software companies. [4:45]
• Jeremy discloses $60,000 invested in Adobe, Salesforce, and ServiceNow, explaining the rationale behind each choice. [4:57]
• Detailed analysis of Micron Technology, debating whether it is an easy money stock or a potential trap. [5:14]
• Microsoft's stagnant performance over two years and the challenges it faces from OpenAI and cloud competition. [6:39]
• Snowflake's transition to profitability and its valuation challenges amidst growth concerns. [8:59]
• Salesforce, dubbed 'Slam Force,' is highlighted as an undervalued stock with strong growth potential. [12:09]
• Palantir's government contracts and potential risks from political shifts and public perception. [16:02]
• Jeremy's projections for Adobe highlight its potential for stable growth and attractive returns. [22:12]
• Intuit's dominant position in small business software and its resistance to disruption by AI. [24:14]
• Netflix's valuation is deemed fair, but uncertainties surrounding Warner Brothers' deal cast a shadow. [30:18]
• ServiceNow's business model and market position are analyzed, with Jeremy emphasizing its long-term growth potential. [33:05]
• Jeremy predicts a future rotation from hardware-focused stocks like Nvidia to undervalued software companies as AI adoption matures. [47:38]

DETAILED ANALYSIS

Jeremy Lefebvre begins by expressing satisfaction with his public account's performance, which posted an $80,000 gain despite the broader stock market facing turmoil. He attributes much of this success to Meta, which alone added $17,000 in value, defying market expectations of a decline. Jeremy reflects on his early career and financial milestones, contrasting them with his current achievements in the stock market.

He analyzes the broader market landscape, noting that several prominent software and tech stocks, such as Microsoft, Snowflake, and Salesforce, have experienced significant declines over the past three months. Despite these losses, he views them as opportunities for long-term investors, arguing that these companies possess some of the strongest business models with recurring revenues and high profitability margins. Jeremy points out that the broader indices, like the S&P 500 and Nasdaq, remain near all-time highs, underscoring the disparity between the overall market and individual stock performance.

Jeremy reveals spending $60,000 on Adobe, Salesforce, and ServiceNow. He justifies these purchases by emphasizing their undervaluation and future growth potential. For Adobe, he highlights its steady revenue growth and strong recurring revenue model.

Salesforce, despite its recent downturn, is viewed as a long-term earnings growth story with significant upside potential. ServiceNow, his newest addition, is praised for its sticky customer base and essential role in enterprise workflow automation, especially among large corporations. Jeremy believes these stocks are temporarily out of favor but will rebound as Wall Street reassesses their value.

Micron Technology sparks a more cautious analysis. Jeremy debates whether it is an easy money stock or a trap, ultimately concluding that it is a short-term opportunity but a long-term risk. He anticipates record profits for Micron in 2026 and 2027 due to high-bandwidth memory demand driven by AI applications.

However, he warns of the cyclical nature of the memory industry, which has historically led to sharp downturns as supply outpaces demand. He advises investors to consider exiting Micron before its growth stagnates, noting that peak profits often precede stock declines.

Jeremy also delves into Microsoft's challenges, including its reliance on OpenAI and competition in the cloud sector. He contrasts this with Meta, which he describes as a cleaner investment due to its lack of direct competition and strong growth metrics. Snowflake's transition to profitability is discussed, with Jeremy acknowledging its high valuation but recognizing the potential for rapid earnings growth as it scales.

Palantir's situation is more complex, as Jeremy identifies political risks associated with its government contracts. He notes that Palantir's perceived alignment with certain administrations could jeopardize future deals if political power shifts. Despite these concerns, he remains optimistic about its commercial growth prospects.

Netflix is another stock Jeremy considers fairly valued but clouded by uncertainty. The pending Warner Brothers deal creates a lack of clarity, making it less attractive for institutional investors in the short term. However, Jeremy sees long-term value for patient investors.

Returning to his new investment, ServiceNow, Jeremy provides a comprehensive overview of its business model and competitive advantages. He describes it as indispensable for large enterprises, with high customer retention and consistent revenue growth. Recent partnerships with Anthropic, OpenAI, and Microsoft further bolster its position in the rapidly evolving AI landscape.

Jeremy concludes by predicting a future market rotation from hardware-focused stocks, such as Nvidia and Micron, to software companies as AI adoption matures. He believes software firms will ultimately become the biggest beneficiaries of AI, driving significant investment in the sector. Jeremy plans to capitalize on this shift by building substantial positions in undervalued software stocks throughout the year.

In summary, Jeremy emphasizes the importance of seeing beyond short-term market volatility to identify undervalued opportunities. His analysis underscores the potential for significant returns in software and tech stocks that are currently out of favor but possess strong fundamentals and long-term growth prospects.

LINKS

• Apply to join Jeremy Lefebvre's private stock group and wealth group.
• Join Jeremy Lefebvre's Patreon for exclusive content.
• Free workshop: How much money you need to quit your job.
• Free 5-day workshop on becoming a great investor.
• Free workshop on finding 10X stocks.

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