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Well hello there ladies and gentlemen and welcome into the midnight edition of the financial education channel earlier today i posted the three stocks i’m planning on buying in november 2018 and i want to talk about some other stocks today because some other stocks got absolutely hammered today three in particular tilray amazon netflix i want to talk about these

Three stocks i think they fell for different reasons i think they are falling they’re not just like they had this one day like they’ve had a lot of bad days and i kind of want to talk about my viewpoints on why those particular stocks are falling right now so i hope you guys enjoy this as always hit a thumbs up if you do and let’s get into this so first off let’s

Discuss still graham i want to start out with till right here then we’ll get onto amazon netflix okay so back yeah you know a few a month or so ago or two months ago i posted a video called huge bubble in the stock market this is the biggest bubble i’ve ever seen in the stock market and i talked about a lot of the pot stocks in the face of that was tilray okay

I talked about that now that video was posted on september 19 2008 eeen and on that particular day tilray hit an all-time high of $300 a share till rate hit $300 a share on that particular day it was unbelievable what a day for to you know to post that video and whatnot now till right if you didn’t know is about $90 a share meaning it is down you know roughly

60% maybe more than 60% since that video was posted you know back on september 19th there okay know if to be fair again still right it’s not just there the only you know pot stock that is following you know we have canopy which has fallen in literally the last two or three weeks it went from over $50 a share to about 33 which is probably the best of the bunch

In my opinion now furia is down to under $10 a share and that one was around 15 plus dollars a share literally just a couple weeks ago alright so there’s one huge reason on why i believe these stocks have fallen so massively basically since i put out that video and especially within the last few weeks and it’s what traders like to call buy the hype and sell the

Reality okay what basically happened is in the spring and summer you have so much excitement going on in the pot space and you had these stocks flying up and going up and going up it seemed like every single day with canada reading that they’re gonna legalize recreational pot and then all sudden it actually happens okay october 17th was a day okay it’s legal now

And basically since that day it has just been an absolute disaster for these stocks they’ve just real completely gone down and down and down with tilray being the poster child of this okay this happens in every single hot space that i’ve seen the stock market pretty much ever okay i remember it happened with the 3d printing stocks you know i happens with last

Year it happened with stocks that were involved with crypto currencies so much money flooded into any stock that was cryptocurrency related didn’t matter if they had a business plan around it or not they just had oh some dream of becoming some cryptocurrency player their stocks just went up like crazy every single time there’s something hot traders will jump all

Over anything they’ll just they’ll just buy it like crazy it sends prices skyrocketing which you saw with all the pot stocks till right once again being the poster child of this and then what ends up happening is also in the reality hits and then also these stocks just go down and down and down and down and down and it gets worse and worse and worse okay now in

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My opinion the pot stocks a lot of them do have good long-term futures in my opinion a lot of them just got massively overbought okay touré going a $300 was ridiculous and i know a lot of people didn’t like me coming out within that video and explaining that was ridiculous but now i think a lot of people are starting to see like yeah it was right like that was

Absolutely ridiculous at tilbury started trade up at $300 again made literally no sense you know just traders just get in these stocks they they ride the rallies and it just seems like it goes up and it goes up and everything’s great in its grand and then all of a sudden you know with when things actually the reality actually comes everybody sells it off and then

The selling breeds more and more selling in the stocks just get absolutely hammered a lot of them have gotten down 30 40 50 60 plus percent literally within the last month or two it’s been an absolute disaster there so there’s my personal opinions just a lot of these stocks to that you know frankly they got way overbought you could make a case that some of them

Are still overbought even after these massive massive falls there are a couple of them that you can make a case that maybe you know or pray somewhat fair based upon whether they’re long-term trends are but there’s still a lot in that space right now that still overvalued even after this massive follow guys and so that in my opinion is exactly what has happened

With tilray he’s just you know traders jumped in it they rode that wave so much money piled in and then as soon as i you know we started to reach around the date that everything was gonna get actually legalized boom it was just nothing but downward from there in a massive massive way okay now let’s go ahead and talk about amazon and netflix okay so a few months

Ago i post a video on the channel and i didn’t get a ton of hate for this video but i got some hate especially from amazon netflix shareholders i talked about why amazon and netflix stocks were overvalued okay and that video was published on july 11 2008 teen all right no shortly after i posted that video either you if you look at the chart here amazon went up okay

So i when i posted that video amazon was just under eighteen hundred dollars a share next thing you know a month or two later a month and a half later it was over two thousand dollars a share and people are like you’re crazy you don’t know what you’re talking about this and that nelson amazon’s fall into about fifteen hundred dollars a share so you know a decent

Amount lower than when i posted the video netflix on the other hand you’re from the time i posted that video it literally just kind of went down and down down it was a four hundred and fifteen dollars or somewhere around there where the day i posted that video now it’s around two hundred and eighty something dollars this year now these stocks in my opinion it’s a

Little different reason than tilray okay so netflix if we look at this company there’s a company right now that has a 67 ish forward p/e on it okay and that’s that’s even after this huge fall it’s had it’s still at a 67 for p never mind what it was at when i actually did that video it was like think i 80 or 90 or something like that at that time okay amazon right

Now has a forward p/e of 59 on it okay a very very high for p on that company alright now these these stocks are completely divergent from the other big tech stocks no these other big tech stocks i’m going to show you also have very strong growth and some of them actually have stronger growth then then netflix and amazon okay let’s look at some of the other big

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Dogs out there facebook we’re at a ford p of 17 okay there’s a company that’s growing 20 30 plus percent right now we have apple which is distill it has very net growth trading out afford p of 15 we have google macdougall trading out of 4 p of 21 was still very very nice growth behind it all right microsoft very strong growth right now trading at a forward p/e of

20 right now all right and so what i believe has happened here with amazon and netflix is all of a sudden when times get tough valuations finally start to matter alright they finally start to matter you cannot have only you know all these other big tech names trading at that pe s between let’s say a 15 and 25 you know some of them are most of those i just showed

You weren’t even at a 25 most em are between 15 and 20 meanwhile you have amazon and netflix who aren’t and who don’t have that much strong leg look at apple’s numbers google’s numbers microsoft numbers facebook numbers look at their numbers versus amazon and netflix look at their revenue growth of those companies versus amazon netflix you’ll find that they’re

Pretty in line with actually what amazon netflix is doing the only difference comes in in that amazon and netflix have ridiculous pease on them okay so when olson times get tough all sudden people start to actually value companies again and start to look at this and they’re like wait a minute i’m gonna stock right now that that has a 80 forward p/e on it and has

20% growth that’s that’s nice 20% growth there’s nothing to sneeze at but paying at 84 p on it is is a little mind blowing okay this has happens every single time there’s volatility in the market or times get tough people just start realizing wait a minute i should certainly you know actually valuing these companies out because what ends up happening is every time

The stock market is just going up and going up no one no one looks at balance sheets and no one starts looking at p/e ratios they just become like unimportant all of a sudden okay it’s ridiculous if it’s absolutely ridiculous in my opinion should always look at balance sheets you should always look at pease especially if their their core positions then you should

Very very much be looking at those okay but whatever the times are great in the markets just going up people stop looking at balance sheets they stop looking at p/e ratios and they’re like oh that company has great growth let’s just ride it man let’s just ride it and then also in their cards come crumbling down a little bit and then also know people start getting

Scared and they’re like wait a minute wait a minute this company has a ridiculous p/e on it right now okay in my opinion amazon netflix need to trade somewhere around where these other companies are trading at they should not be in my opinion still trading at these ridiculous p/e ratios okay no for someone that might say well jeremy you hold netflix shares right

Are you you i’m not enough like you hold tesla shares right now who are you to point the finger and netflix and amazon when you hold tesla shares okay there’s a massive difference between tesla and what amazon is doing and netflix are doing okay their growth are on completely different different ranges okay tussle right now is growing revenues a hundred plus

Percent year-over-year i’m in the past quarter was like something like a hundred and fifty percent year-over-year this and this type of growth is like parabolic like on a whole other level than versus these other companies netflix and amazon are growing between 20% and 30% revenues right now okay so these are massively different companies that are growing at

Much different speeds tesla has the most breakneck growth i’ve ever seen from any large company ever i’ve never seen a company that had multi-billion dollars type you know revenue coming in every single quarter and was growing revenues at a hundred percent as percent plus clip i’ve never seen this before and keep in mind they’re not even sell model 3 to china

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Europe or some of those markets yet okay they haven’t even started leasing out model threes or any tesla’s in general imagine when they start doing that metal model white like like tesla has you know years i had a bit of 50% plus growth rates where tessa where netflix and amazon or are pretty much stuck in this twenty to thirty percent range and will be going

Down like the two levels in a fifteen percent range than a ten percent range unless they acquire some of the big companies okay so there are two totally different level playing fields guys but all of a sudden this always happens when all of a sudden though you know the market gets rough volatility happens people start looking at the values of these companies and

They start saying man maybe i shouldn’t be in this and they start to realize that it’s foolish to own some stocks out there that don’t have that great of growth and yet are are trading at 8090 pees on them guys we’re talking about forward pees never even never mind even like the current pees of a trailing 12 monkeys we’re talking about what they’re expected over

The next year guys is ridiculous so in my opinion you know as far as a pot stocks go they’re in a tough position right now okay they’re in a really tough position because you have so much traitor momentum out of them now okay they may still you know have to bottom from here okay did i i’m not gonna go out there and say oh them they’ve hit the bottom they might have

Further to fall here and eventually they’ll kind of catch up and then eventually a long-term investor base will completely come in those companies and they will ride but that might take a little while as far as amazon and netflix go if the market continues to kind of be stagnant or weak i think these type of stocks can you know continue to fall because if the market

Continues to weaken or if we’re in a stagnation type period i think there’s a lot of people are gonna realize like these valuations on amazon netflix is just ridiculous i have nothing against amazon i’ll of the amazon like i preach about amazon all the time and how much i believe in that company but at its valuation it makes it ridiculous okay netflix i think has a

Great opportunity but they have a massive amount of competition coming in 2019 and they’re trading still at a ridiculous forward p/e ratio okay so you know that’s my beef with those companies not that i don’t believe in them or something it’s just like sometimes things get overbought okay i could sell you this watch for i don’t know a thousand dollars and i might

Be a good deal to you or you might be like dude that has massively overvalued that watch is not worth a thousand dollars like there’s always a value to everything out there and sometimes things just give very overpriced and very under priced and that’s the magic of the stock market that’s a beautiful thing about it because when things get massively under priced

You make so much money over the coming years in it and when things get way overpriced hey as a short seller you can make a lot of money on that downside too so i hope you guys enjoy this as always let me know if you own any of those stocks down there and that comment section i would love to hear from you guys as always if you want to come to my conference that’s

Linked in the description thank you for watching and have a great day

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