Loop Capital's Alan Gould: Only thing not to like in Netflix's earnings report is U.S. engagement
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Wall Street's Tom Lee Says This 'Most Hated' Rally Could Be A Fortune-Maker—And Bitcoin at $250K Isn't Out Of Reach
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. When Wall Street veteran Tom Lee speaks, investors listen. As head of research at Fundstrat Global Advisors, Lee has built a reputation for bold predictions and contrarian calls that often prove prescient. In a recent CNBC interview, the market strategist delivered a compelling case for why current market skepticism could create generational wealth opportunities—and why his eye-popping Bitcoin price target might not be as crazy as it sounds. The Recovery Everyone Loves to Hate Lee describes the market's recent rebound as the 'most hated V-shape bounce in history,' pointing to a critical disconnect between market performance and investor sentiment. During what he calls 'April tariff Armageddon,' fear of recession drove massive liquidations, leaving most investors underexposed when markets staged their dramatic recovery. Don't Miss: Be part of the breakthrough that could replace plastic as we know it— — no wallets, just price speculation and free paper trading to practice different strategies. This positioning creates an unusual dynamic: strong fundamentals meeting widespread skepticism. 'Most investors are currently underexposed,' Lee notes, suggesting significant upside potential as sentiment eventually catches up to reality. Why the Market Is Cheaper Than You Think Challenging the narrative that stocks have become dangerously overvalued, Lee presents compelling valuation data. Despite enduring what he characterizes as 'six extinction-like events' over the past six years—including COVID-19, supply chain disruptions, inflation surges, aggressive Fed rate hikes, Trump tariffs, and geopolitical tensions—S&P 500 earnings have actually grown. More surprisingly, the equity-weighted S&P multiple has compressed from approximately 17.6 times in 2019 to 16 times currently. This suggests the market has become cheaper even as earnings demonstrated remarkable resilience through unprecedented challenges. Trending: Grow your IRA or 401(k) with Crypto – . Apple's AI Ace in the Hole While much attention focuses on the 'Magnificent Seven' tech giants, Lee offers a contrarian take on Apple (NASDAQ:AAPL). He believes the iPhone maker has been 'quietly ready to pounce on AI' and will 'surprise people' with its approach. Drawing parallels to Apple's transformative but late entry into smartphones with the 2007 iPhone launch, Lee suggests that when Apple decides to 'play big in AI,' it will 'change the game.' He emphasizes Apple's competitive advantages in safety, privacy, and user experience optimization—particularly valuable if large language models become commoditized. The strategist also supports speculation around Apple's potential foldable phone launch this fall, noting that larger screens drive users toward 'computing and something much higher capability,' aligning with augmented reality applications in the AI era. The Stablecoin Revolution and Ethereum's Golden Opportunity Lee identifies stablecoins as the 'ChatGPT moment for crypto,' highlighting their growing adoption by businesses, consumers, and major financial institutions like JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C). This trend creates significant opportunities for Ethereum, which hosts the majority of stablecoins and generates over 30% of its network fees from this Ethereum approaching a $4 trillion market valuation, Lee sees substantial upside. While technical analysis suggests near-term targets around $5,000, he believes valuation metrics similar to Circle could justify prices between $10,000 and $20,000. The $250K Bitcoin Vision Perhaps Lee's boldest call remains his Bitcoin price target of $200,000 to $250,000, which he maintains 'still makes sense.' His reasoning is straightforward: this would value Bitcoin at just 25% of gold's market size. Looking further ahead, Lee reiterates his belief that Bitcoin 'should be worth over a million per bitcoin' and that this 'could happen in the next few years.' The Bottom Line Lee's message is clear: current market skepticism, combined with resilient fundamentals and emerging technological shifts, creates compelling investment opportunities. Whether through traditional equities trading at compressed multiples, Apple's potential AI breakthrough, or cryptocurrency's institutional adoption wave, patient investors willing to look past short-term noise may find themselves positioned for significant gains. As Lee emphasizes, his goal at Fundstrat remains helping clients 'find good ideas and make money'—and his track record suggests these contrarian insights deserve serious consideration. Read Next: A must-have for all crypto enthusiasts: . Image: Shutterstock This article Wall Street's Tom Lee Says This 'Most Hated' Rally Could Be A Fortune-Maker—And Bitcoin at $250K Isn't Out Of Reach originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 hours ago
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The Smartest Growth Stock to Invest $5,000 in Right Now
Key Points Netflix delivered another excellent quarterly report. The company continues to boast a strong moat and vast runway for growth. Shares may seem expensive, but the premium is justified given Netflix's prospects. 10 stocks we like better than Netflix › Let's start with an important caveat. Since investors have different goals, preferences, risk tolerances, and available capital, it's challenging to choose a stock that everyone would universally consider a smart buy. That said, among the many growth-oriented companies on the market right now, one which I feel looks particularly attractive is Netflix (NASDAQ: NFLX). The streaming giant continues to deliver in a highly competitive entertainment industry, and the stock has excellent long-term prospects. Here's why investors would be wise to put $5,000 into Netflix today. Another quarter with excellent results For several quarters running, Netflix has been impressing Wall Street with its earnings results. The company's Q2 revenue increased 15.9% year over year to $11.1 billion, slightly ahead of its $11.0 billion guidance. Netflix's earnings per share (EPS) of $7.19 also beat its $7.03 projection, growing by 47% compared to the year-ago period. And there were plenty of other bright spots -- Netflix's free cash flow soared almost 87% year over year as well. One thing driving these strong results was member growth. Netflix recently increased its prices in the U.S. and several other markets. Yet, new subscribers are still coming in. That says a lot about the company's business. Netflix is the leader in streaming, and its brand name and massive library of content continuously attract new users while retaining existing ones. That strong brand name also gives the business a competitive edge and pricing power. For the third quarter, Netflix is guiding for year-over-year revenue and EPS growth of 17% and 27%, respectively. Management also increased its full-year revenue outlook to a range of $44.8 billion to $45.2 billion, in part due to stronger than expected member growth. Why the future is bright for Netflix Netflix's brand isn't its only competitive advantage. The company's massive ecosystem of viewers grants it access to data it can use to produce new content (or license existing movies and shows) that its viewers will love. This leads to greater engagement as films spread through word of mouth and social media platforms, ultimately resulting in even more subscribers -- an excellent example of the network effect. Since 2019, the streaming landscape has undergone a significant evolution with numerous new platforms emerging, including some created by leading companies in the media and technology sectors. Netflix has continued to thrive despite all that, after an adjustment period. The company has introduced a low-price, ad-supported tier, for example, and it continues to scale its advertising business. Even with fears of an economic downturn swirling, the company's ability to grow its subscriber count while it raises prices suggests its customers aren't very price sensitive. If a recession does hit, that might somewhat impact demand for the company's services, but this wouldn't be the first time Netflix has navigated a tough macroeconomic environment. As the company's co-CEO, Greg Peters, stated during the Q2 earnings call, Netflix has been "historically pretty resilient in tougher economic times." Expect the same moving forward. Streaming has already positioned itself as the future of entertainment. It is vastly superior to cable in that it offers the ability to watch shows or movies on demand on multiple screens at any time. That's why streaming has been gaining ground while cable is losing market share. But old habits die hard. Millions of consumers are still tied to cable, helping to keep the industry alive in the U.S. That market will continue to shrink over time, though, and that remains a massive long-term opportunity for Netflix. As for the stock, Netflix's forward price-to-earnings ratio is just under 45 as of this writing. That sits well above the average of 19.9 for the communication services sector. However, Netflix has earned the premium given its market leadership, outstanding track record, and attractive long-term prospects. Perhaps the stock may be somewhat volatile in the short term, but over the long term, this won't matter too much. Those intending to hold Netflix for the next five to 10 years should still consider buying the stock, even at current levels. Netflix is a top pick for a broad swath of investors, and with $5,000, you can get a bit more than four of the company's shares as of this writing. Should you buy stock in Netflix right now? Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. The Smartest Growth Stock to Invest $5,000 in Right Now was originally published by The Motley Fool Sign in to access your portfolio
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6 hours ago
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International Business Machines Corporation (IBM): Don't Abandon The Stock, Warns Jim Cramer
We recently published . International Business Machines Corporation (NYSE:IBM) is one of the stocks Jim Cramer recently discussed. International Business Machines Corporation (NYSE:IBM) is one of Cramer's favorite technology stocks. Throughout this year, the CNBC TV host has expressed optimism about the firm's CEO and the firm's consistency in winning contracts for its enterprise computing business. International Business Machines Corporation (NYSE:IBM)'s shares fell by 7.6% after the firm's latest earnings report saw software revenue of $7.39 billion miss analyst estimates of $7.43 billion. Cramer discussed the earnings report: 'Most of the news is good this morning, IBM. I still think not as bad, uh, Chipotle we have to talk about. Copyright: believeinme33 / 123RF Stock Photo Previously, he discussed potential future International Business Machines Corporation (NYSE:IBM) share price movement: 'Oh, I like IBM very much. I mentioned Ben Wright earlier. I think that Ben, he's really turned me on to this stock. We did a very positive piece about it. I think it goes, I'm going to say not much higher but creeping higher over time, and that's actually a great place to be. So I like IBM.' While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
