Not Your Normal Stock Analysis

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Quote

"The Costco hotdog is a greater store of value than Bitcoin." - Douglas Boneparth

3 Picks

I’m not a big fan of “stock pick” articles.

Why?

First, everyone has different goals, time frames, and objectives that influence their investments. What might be a good deal for an 18 year old to hold the next 10 years might not be for the 60 year old looking to retire soon.

Second, I’m liking ETFs more and more. It is hard to beat the market long term.

Those who do spend hours researching picks and tracking the performance of their companies. ETFs let me buy and forget when I want to, and spend that time doing other productive activities. Like writing this email (at least I call it productive).

The reason I continue to dabble, stock picking is fun.

Following innovative products, seeing cutting-edge technology, and reading about how the CEO of one of the most popular companies smoked a joint with Joe Rogan is not something you get with ETFs.

Furthermore, it’s a great way to stay “in tune” with the market.

End rant.

This email is not going to be your typical stock analysis because you can find a bazillion articles covering the cash flow, debt to equity ratio, blah, blah.

Instead, I’m going to give you the view of these three stocks from a 24-year-olds perspective. How my friends interact with these companies, how their technology could be applied going forward, and what I think sucks about each one. In case you missed the initial thread you can read it here.

Let’s get into it my favorite three from the list.

Drum roll please....

PayPal

There is one reason for me having PayPal on this list, Venmo.

For all the boomers out there Venmo is a digital payment service that lets you send payments to any user on the app. For example, last weekend I was at a bar watching college football with the “bois.” Instead of all of us getting separate tabs and driving the waiter crazy we put it all on one and concluded “we’ll just Venmo you.”

That little line makes PayPal a ton of money. Through college, and even now at work now I see Venmo being used almost daily.

I don’t think Venmo has a big moat but it has cemented itself as the go-to “I owe you” solver.

It’s easier than cash and extremely convenient.

And fun to give your bud a hard time over (excuse the y'alls, Texas vocabulary at work.)

My one comment on fundamentals, they have a good balance sheet and are currently trading with PE ratio under 20.

Meta

Facebook is out, Meta is in.

As you might know, Meta owns Facebook (duh), Messenger, WhatsApp, and Instagram.

From my experience, Facebook is on the decline as far as a social platform. That said, I see people selling things on Marketplace more than ever. This might be a long shot, but I think Facebook marketplace is great and could mold itself into the next Craigslist.

Instagram is extremely popular (follow me there @cadeinvests). The other day I heard a guy say “Instagram is more of a dating site than it is a social platform.” First off, this made me laugh, but second, it’s an idea I think a lot of people look over. I’m not single, but anytime someone wants to look up another person the first place they look is Instagram.

Lastly, Meta is working on what they are calling the Metaverse. Essentially a digital world for eCommerce, socials, gaming, education, etc.

While the Metaverse is still a ways off, Meta has the funds and resources to take a good swing at making this a reality. If they do it right, it will be a mega asset for the company.

(Current PE is under 11...yes 11)

Shopify

Arguably the least popular on this list is Shopify. Down over 80% it has been taken to the cleaners by this market but eCommerce is here to stay.

Before you know it, Amazon is going to have drones carpet bombing your neighborhood with packages.

While Shopify isn’t a giant like Amazon, I like Shopify for how easy they make it for the little guy.

Over the years I have played around with a few eCommerce ideas that involved Shopify stores. Their platform is extremely easy to use and lets business owners personalize their site, accept online payment, track customer analytics, and so much more.

My sister has recently started her own “craft shop” where she creates custom drinkware, koozies, shirts, and wedding decorations. She found Shopify on her own, taught herself how to create a store, and began selling products all within a week or so.

Now my sister isn’t dumb (just stubborn sometimes) but it goes to show how easy Shopify has made it for small businesses to get up and running.

Conclusion

If you thought my opinions there were worthless, cool. Feel free to use Google and pull up a traditional stock analysis on any of these three.

(You probably should anyways before investing.)

Seriously though, I hope this email added value to your perspective of these companies or at least made you chuckle. I currently own PayPal and Meta and will be looking to add a little Shopify here soon.

Thanks for reading, Cade.

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Michael Myers Interview - Not educational. Just hilarious.

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Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you soon!