Speaker 1: 0:00

Felix and Albert here and the market is flying. I want you to understand why, so you can make better decisions. We're gonna talk meta. We're gonna talk Microsoft. We're gonna talk perhaps the real reason the market's really flying. And then what are the opportunities? What should we actually be looking at? And I'm telling you, this is an Albert-sized he's a large cat. It is an Albert-sized rally this morning. So stick around, smash the you-know-what and let's get straight into it. I'm going to share my screen with you. There we are.

Speaker 1: 0:30

Meta did the unthinkable. Meta just made almost everybody richer, especially good old Zook. This is what their business looks like. They bring in $46 billion. $18 billion of that is pure profit in Zuckerberg's account no, actually in shareholders accounts. But it's an incredibly profitable business. And why is the market so excited about it? Because they added 6% extra people. Now they have already half the world as customers, so to add 6% extra people is insanely difficult. So whatever they're doing over there, it's working. Revenue is up, 22% Operating margin is up, profit per share is a huge whopping beat over a dollar more. And they're spending a little bit more than expected on AI, but because they can see that it's making money already and that's the important thing to take away from here today. So I'll walk you through a bunch of stocks there in a second that we might want to look at and buy.

Speaker 1: 1:31

As I'm recording this and this is, of course, pre-market Meta is off the charts. I mean, it's literally gapping up like nobody's business. Insane stuff 11.7 percent up company that size that's crazy. Also also says we've begun to see glimpses of our and take a screenshot of this. This is like historic. This is like the moment when everything just changed. We've begun to see glimpses of our AI systems improving themselves and the improvement is slow for now, but undeniable. And developing superintelligence, which we define as AI that surpasses human intelligence in every way, we think is now in sight. Do you know what that means? Do you know how much money Meta spends on developers? They'll be able to get rid of most of them or keep them and build something else 10 times better. Either way, it's going to make this business a heck of a lot more profitable.

Speaker 1: 2:34

And why are companies like Meta seeing the early beneficiaries of AI? Because they deal only with data. Right, they track what websites you go, what YouTube videos you watch, what you click on, all that kind of stuff, and then they want to show you relevant ads. So the better they know you, the better they can put all that data together and get the virtual you, which is spooky, I know, but the more profits they make and it's going to happen whether you like it or not, so you might as well participate in the rally. That's my view on that.

Speaker 1: 2:59

Microsoft is similarly extraordinary business. A similarly extraordinary business 18% increase in revenue. Again, this isn't some startup. You know. They've been around for a while. Azure, their cloud computing, is up a whopping 39%. I mean, think about that growth. Revenue up 18% to 76 billion. Operating margins are up. Earnings per share is a pretty significant beat there as well. So, microsoft doing everything right.

Speaker 1: 3:29

That means the AI rally, bubble boom, whatever you might want to call it, is happening and it's going to get way, way, way bigger, in my humble opinion. Who's going to benefit? Well, it'll be your AMD, it'll be your Nvidia, but also the other cloud competitors, your Google, also an advertising business, obviously. Your Amazon, biggest cloud company there is, and the entire freaking AI supply chain and everything that's linked to that. Now, does that mean you should buy every one of these stocks? No, and you need to understand, if you're participating in this AI rally or, if you want to, what happens when the lights go out? Because it'll happen. I'm telling you there will be an AI crash. The market overdoes everything always, and we added a ridiculous number of billions to these market caps of these two companies this morning. It will crash at some point. I don't think it'll be that soon, but you never see it coming. And how do I sleep at night knowing that most of my money is in the market? Because we have risk management, automated risk management. So if you want to learn, not just which companies to buy, which yes, it's cool and we'll definitely teach you that because we want to really, really take advantage of this make the most of this rally, but we also want to protect your portfolio. So, like the February dip that just happened, that doesn't happen to you again. The post-COVID crash that happened to most of you, right? You're probably still holding on to one of those stocks. If you're still holding on to a COVID-era stock like a Plug or a Neo or something like that, put the stock ticker in the chat. I think it's just good to get it off our chest. But if you want to learn this how to make the most of this rally and to protect your portfolio.

Speaker 1: 5:12

I'm running a free live masterclass on Saturday. This is for beginners. This is like for everybody, every stock investor out there right? Don't need to be a genius, you don't need to be a Wall Street expert or any of that. Come and join me. There's a link down below felixfrenzelogcom. Sign up, put your name in it, email and phone so we can notify you, so you don't forget, and you will learn with me and it'll be super fun and I love doing this because I love teaching. That's the whole point of this community here. Felix, france and oxford training is a good on there, but there is more. Yes, yes, yes, yes, yes, there is more. Donald j trump says I'm pleased, he's just pleased, pleased himself. He looked in the mirror and he said I'm pleased.

Speaker 1: 5:47

Um, trade deal with the republic of korea, generally referred to as just korea or south korea, at South Korea will give the United States $350 billion for investments owned and controlled by the United States, probably Samsung or so on, as selected myself as president. Additionally, south Korea will purchase $100 billion of liquid petroleum, gas or other energy products, and South Korea has agreed to invest other large sums of money for investment purposes, and that's going to be announced in the next two weeks and they will be open to trade with the United States. And that is a tariff rate of 15%. Why is this good news? Because it means the dominoes are falling in place. The uncertainty around what tariffs will be is the scary part. So what have we got now? We've got the European apparatchiks right, they're done. We've got South Korea, kimchi lovers they're done. What else have we got? We've got the weak Brits. Sorry, but it's true, they're done.

Speaker 1: 7:02

Those are actually very, very large trading partners. Yeah, there is still Japan, there is still China, there is Russia. There will be no free trade here with Russia. There is still India, and they're putting some pressure on those. But you have here three very large, very developed, very wealthy economies who've agreed to deals, and it means that the other deals will be similar to these deals and the market can never see the end of the tunnel.

Speaker 1: 7:26

There will not be, you know, 100% tariffs on stuff. It just isn't going to happen. It's going to be like 15%, and we can all live with that because it doesn't really make a huge difference, right? Basically, what happens is that the importing company or, like you know your sort of Apple or someone. They pay, say it's 15%, they pay 10% of that, manufacturer pays 5% of that, or whatever Consumer pays 5%. It's neither here nor there, nobody really cares. Spark some crazy inflation spiral. It's just like neither here nor there. It's basically higher taxes, and the US, quite frankly, needs higher taxes or a lot lower spending, and you seem to find it harder to cut spending than to raise taxes. So there we are.

Speaker 1: 8:06

The market is going to be very happy about this less uncertainty, more free trade, and I mean US energy stocks, oil companies, gas companies. They are going to do very well out of this, as will likely be the whole defense sector. So that could be another one to answer the list, the whole defense sector. And here is one more. It gets even better. Look at Robinhood. They beat revenue, profits, profits.

Speaker 1: 8:29

And this is from Stock Market Nerd. Great chap. Follow him on X, if you haven't already. Just an extraordinary quarter, best margins ever. Hard, not to hard, not to like what these guys are doing over there. So learn how to pick these beautiful stocks. We're going to make so much money, in my humble opinion, the next six months, the next 12 months, but most people will sit in the wrong thing and it's because most people don't really know what they own. That is like oh I, oh, I'm stuck in this. It's like you know you made a choice to buy it. You actually have a choice to sell it. There might also be some other things you can do if you're holding something that is really, really down.

Speaker 1: 9:03

Now, good news is that our friends on Capitol Hill are participating in this. Cleo Fields, a Louisiana representative representative. He managed to gobble up a lot of Microsoft and a fair chunk of Meta just before earnings came out. Now, I'm sure he had no insider knowledge. I mean, it's not like he sits on the House Financial Services Committee or the Subcommittee on Capital Markets or Subcommittee on Financial Institutions and would never have access to people who know things. No, no, no, of course not. He's just there for the good of the people.

Speaker 1: 9:35

Now, moving on from that little skit, which hopefully amused you, let's have a look at our favorite stocks here. And I appreciate stock prices change. Someone's going to watch this and go, felix, their stock prices changed since you recorded this. I'm like yes, this is a video I recorded and you watch it some time later. There is still value in it, because I try to give you rules and structure and systems, not the. This just happened and it's going to be over in three seconds. If that makes some sense to you, then stick around. If it doesn't, maybe don't.

Speaker 1: 10:08

Palantir is looking pretty nice this morning. It's gapping up as I'm recording this here, and that's, of course, just the whole AI sector. If Meta is making money out of AI and we've seen that impact into their profits and their revenue then it means everybody else can too. And if everybody else is starting to make money, more and more companies will be like we need to make money too on AI. How do we do that? How do we do that? God pardon me? Okay, that's one of those things, right?

Speaker 1: 10:32

Sofi has recovered pretty significantly since I put out a video yesterday which I recorded before the recovery. Just to make that clear as well. I don't have a crystal ball yet. The cats keep smashing the ones I order of Amazon and they didn't seem that good. But there are sometimes just things that don't make a lot of sense, and to me, yesterday was one of the things that didn't make a lot of mathematical sense. So we're looking very nice here this morning gapping up.

Speaker 1: 10:57

What do you want to see. You want to see some pretty decent volume on a sort of consolidation pattern around where we're currently trading. So at 2258, we're perfectly, perfectly happy because we're now actually above the dilution moment, right. So they added 7% extra stocks. Does that mean the stock should fall 7% like it did yesterday? In my humble opinion, no, and I tell you why. Because I'm assuming that SoFi management isn't just completely high on fentanyl and therefore are going to do something with that money that will generate returns for shareholders. They lend it out. They generate returns for shareholders. Maybe they'll buy something with it that could be useful. That'll be not my favorite option. I prefer if they just used it as working capital. Quite frankly, grow faster and the market seems to come to the similar conclusion that we overreacted. Oh my God. Like you know, they always do that.

Speaker 1: 11:51

We can also have a quick look at dark pools. Let's see if they and you can see here, like life, where the flows are bullish and bearish from institutions. That is because these are big trades. We can have a quick look at SoFi here and always select the right date. That's important. Thursday was the last. No, wednesday was the last trading day and slightly bearish, so not a huge amount. What were the biggest trades? They're not that big, to be honest with you. So the whales are not on SoFi, and it kind of makes sense again, because you're jp morgan. You don't really want to own so far, do you? You want to crush the bastards, which is probably what they're planning.

Speaker 1: 12:29

Um, another thing I like a lot at the moment is a little bit of a nugget for you. It is gold. Gold is consolidating very, very nicely in, you know, this sort of zone there. It's literally doing what my mentors taught me actually is the pattern. So it zigzags sideways and you get these highs here all at pretty much exactly the same level. So are we ever buying gold here? Well, that's a bit of a risky proposition. We're below the 50-day moving average.

Speaker 1: 13:06

Now what I'm saying is it comes back up and if it breaks out of that zone, that works impossible. So I didn't actually buy digital ETF gold. I'm not a huge believer in that. Instead, we buy gold miners, and I think gold miners, in my humble opinion, are still massively undervalued. Maybe we'll do a little section on that on Saturday as well. So come and join me at fredericksfrancidogscom.

Speaker 1: 13:29

I think this is a very, very cool opportunity and from our last entry point on this one, for example, we are still up 53%. It was 65%, but that's just, you gotta live with that 10, 12% up on something as volatile as this and that's how we potentially lock in much, much greater gains, because otherwise, you know, you'd be out here, you'd be out there, you would have sold here, you would have sold there every time and you, just you, would have only done this journey rather than that journey. You see what I'm saying so important to manage the whole thing risk management, whole thing, risk management, whole portfolio. I'll cover all of that on Saturday Felix Ransom, dogstash, training in the live training, and I wish you a big and beautiful rest of your day. If you are wondering whether this is live, nope, I pre-recorded this. Why? Because I was planning to go out and have some fun.