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So folks the nasdaq has been shredded and i want to show you exactly what’s going on in this video i want to take you through new data that has come out here that i want to show you guys and um we’re going to go through this and i really want to go in depth on kind of showing you what’s been happening in the nasdaq now i’m talking shredded not like my hair shredded

But i’m talking about stock prices going down and uh we on this channel we’ve talked a lot over the past several months about the russell right and we’ve talked about small cap stocks meaning stocks that are 5 billion or under specifically in market capitalization what has happened to those stocks and we’ve gone through you know uh dozens and dozens and dozens of

These stocks that have just you know done horrible right down 50 60 70 80 from all time highs some of these companies have bad business models some of these companies have no business models some of them have good business models and some of them have great long-term prospects for their business models right but it really doesn’t matter it’s almost every single small

Cap has fallen but the nasdaq as well and so we’re going to talk about this i’m going to show you this data in this video then we’re going to get into if i think we’re close to a bottom when it comes to this what’s the next leg those sorts of things hope you guys enjoy this as always make sure to subscribe to the channel if you’re not it’s absolutely free to do so

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Breaking news in there you can listen to earnings calls do so much more it’s awesome the hungry ball okay so the idea for this video uh came from mainstream uh financial media which is starting to pick up on some of this stuff now right we’ve been talking about you know the how the small caps have been getting devastated for months but it seems like even you know

Mainstream’s really starting to catch on this comes out of yahoo finance today the nasdaq is quietly being shredded new data underneath the surface the tech stock heavy nasdaq composite is being shredded as traders fret about higher interest rates from the federal reserve this year nearly 40 percent of the stocks on the exchange have been cut in half meaning at

Least 50 percent decline according to new research from sundial capital research the research firm notes that this kind of trading action on the nasdaq hasn’t been seen since at least 1999 okay that’s how intense it has gotten and here we are in the situation where you know unless you’re really into the markets no one’s noticed this no one’s noticed this because

The indexes have held up but meanwhile beneath the surface it’s kind of like you know imagine you know like a sinkhole right and like the surface still looks fine but underneath it like everything’s eroding and it’s just like you know and no one’s noticing because it still looks all okay unless you’re really like you know you you can see under the ground right

And you kind of realize what’s going on and that’s this whole situation some of the largest tech sell-offs have been seen as momentum favorites among traders streaming media player roku has seen a stock crash 40 percent in the past three months and uh you know obviously modern is down 30 during the same stretch look at this this chart here it shows you percent of

Stocks down 20 percent from 52-week highs okay look at this nearly two-thirds of nasdaq stocks are already in bear markets think about that for a moment the last thing on anybody’s mind right now if you’re just paying attention to the overall markets is oh we’re in a bear market if you’re just looking at indexes you think everything is great we’re doing tremendous

We’re not in no bear market man we’re in a bull market and meanwhile when you go just a little layer beneath you realize two-thirds of nasdaq stocks are already in bear market the percent of stocks down 20 percent plus from 52-week highs is astronomically high look at this you know we’re approaching 70 percent of stocks in the nasdaq or down 20 or more from 52 week

Highs guys that’s a large number you know last time you had a number like this you had to go back to the roni rona crash before that you had to go to the you know the dramatic 2018 crash in late 2018 before that you had to go all the way back to election time 2016-ish and before that you had to go all the way back to you know around 2012 2011 okay so nonetheless

This doesn’t happen very often but when it happens it is very very painful very very painful the trading action doesn’t bode well for the nasdaq this year the research shows when at least 35 of the stocks are down by half on the nasdaq the index has been down an average of 47 percent and this is this is i mean this is just like fries your brain right because you’re

Like looking at this and you’re like wait a minute next axe looks so great on face level yet two-thirds are in bear market two-thirds of stocks on it and it’s like oh my gosh okay top investing mine suggests a sell-off is in buzzy tech names shouldn’t be a surprise given the changing dynamics of fed policy and elevated valuations but the thing is when you dive a

Little deeper here and i want to take you guys through a lot of stocks here okay and what i’m going to take you through here is larger market caps too all these stocks i’m going to show you are 10 billion market caps or bigger okay 10 billion mark caps are bigger so we’re not even going to look at small caps which is what we cover you know a lot on the channel uh

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Very recent and what you’re also going to find is is a lot of these stocks i’m about to share with you they aren’t even necessarily the the buzzy tech names okay and then we’ll get into kind of my feelings on if we’re close to the bottom not even close to the bottom those sorts of things but yeah a lot of these stocks aren’t even buzzy tech names okay look at good

Rx good rx a prescription company that you know helps you save money on your prescriptions so this company you know definitely i would not call it a buzzy tech name at all but look at it it’s look at how far off it’s 52 week highs 52 high’s around 60 is that 26 it’s over 50 percent off its 52-week high for a company that’s a little over 10 billion market cap and

Once again this is not some you know buzzy tech company that like everybody had piled into because it was the hot stock right this is not a zoom stock or a peloton or something like that okay this is good rx and the stock price has just been devastated man i mean that’s that’s awful the business has been executing like you look at the numbers of this company i’ve

Been tracking the numbers last couple quarters it’s in a pretty dang healthy spot not a stock i personally own but i would say the numbers have been pretty impressive but it doesn’t matter it doesn’t matter in this sort of market it’s kind of just like throw it out right now if you if you can’t slap a pe on it at the moment you know a lot of investors just haven’t

Wanted a piece of these stocks right now now the the market goes through some of these time periods when you know also no one cares about or you know folks only want to be in stocks that have a pe but then also most of the time you figure out like no one ever actually really cares that much about pe and it’s really about forward p if anything okay uh but anyways

That that’s the situation with good rx look at alibaba obviously anybody that’s been in alibaba stock has gotten absolutely devastating unless they got in very very recently when it comes to this one right 52 week high 274 that’s obviously a multi-hundred billion dollar mark cap the biggest big dog out of china companies obese the business model is a beast but this

Is just a devastating stock right no one wants a piece of chinese stocks right now let’s be quite honest and this obviously you know it still holds pretty big weight in a lot of indexes but not like it used to right and uh i mean the valuation looks just silly low on this company but it doesn’t matter you know no one wants a piece of chinese socks right now so let’s

Talk like this it’s just not the play right um if all of a sudden china tensions ease and things kind of you know get back just decent you know alibaba can easily go back over 200 but that you know that still needs to kind of play out there look at a stock like palantir a 30 billion plus dollar company this stock peaked out at 45 dollars it’s 16 bucks there today

16 bucks you know that’s what a 60 plus decline there in the stock price from 52 week highs the stock price has just been absolutely devastating and it’s not like investors haven’t been impressed by the quarterly numbers quarterly numbers have actually been really impressive from palantir but it doesn’t matter where’s the pe on the stock right you can’t throw a pe

On it right now and people are like ah i don’t want a piece of that one right and so even a beautiful you know long-term huge growth story like a palantir people just don’t want that type of stock right now when i say people i’m really talking about obviously fund managers and big money because they’re really the ones that run the market retail investors might like

Palantir but retail investors don’t run the market at the end of the day the big money is what runs the market and that’s what you know really dictates whether these stock prices go up or down right and so look at a pallent here it’s just it’s just tough tough sledding there for palantir paypal i mean you know this is not some buzzy stock this is a great gigantic

Corporation that has unbelievable growth and it’s a two it’s a multi-hundred billion dollar market cap like kinda like an alibaba but the difference is paypal’s an american company it’s not like this is a chinese stock and you have to worry about de-listing and all that drama and look at ali look at paypal i mean the stock has just fallen off a cliff i mean just

Simply falling off a cliff from 310 to very recently it’s been trading near 52-week lows for paypal are you kidding me i mean one of the best business models out there and it’s just it’s been a devastating stock like you think it would be the end of the world for paypal look at square you want to talk about even a worse situation that’s square square is now down

Over 50 percent from 52-week highs now 52-week high was 289 and right now the stock’s now trading at 141 per square you know this is another one that’s caught up in kind of the bitcoin demise right we’ve seen bitcoin fall quite dramatically recently bitcoin i was looking at it this morning it was in the 41 000 range now and so square gets caught up into a lot of

That and if bitcoin goes down right now it’s pulling down square stock plus you have kind of this whole situation going on with the nasdaq and growth stocks in general and high pe names or no pe names at least square has a p but it is a high p and it’s just it’s obviously just not not a good fit at the moment right a long-term investors are loving this as far as


Long-term investors in square that are really in this for the next five ten years but everybody else is like looking at this and they’re like oh this is awful okay look at uber opening boom stock okay stock peaked out at 64. it’s 41 today i mean you know that’s what a 35 40 percent decline something like that in uber stock now and i mean uber if you look at their

Actual business model it’s just going to get better and better now that you know especially in 22 as we progress throughout the year travel will return in a much bigger way throughout the year uh uber rides will return in a much bigger way uber eats will still continue to thrive plus they’re gonna have uber delivery expanded out and so uber i mean this is a company

That’s in a pretty good spot over the coming years in my personal opinion for at least the next five years from 22 all the way to 27 but you know where’s the p that that’s what that’s what matters right now in this market right where’s the pe like i said then when things flip they’re gonna flip the other way and they’ll go really really quickly uh but for right now

It’s it’s all about peas right and that’s once again look at uber’s an 80-plus billion dollar market cap huge company right look at zoom zoom’s a 50-plus billion dollar mark cap this stocks you know from 451 to 171 dollars here today and well i mean what is that a 65 70 percent decline something like that in the stock price i mean that’s just simply devastating

For the stock at least 60 percent right i mean that’s just devastating for the stock to to have fallen like this now with zoom at least this is one of those buzzy stocks right that really got caught into the hype of last year so at least you can make that argument for zoom you know mostly stocks you can’t really make that argument for but at least you can say hey

Zoom was caught up in all that the thing that’s interesting with zoom is this company went from being arguably one of the most overvalued companies a couple years ago especially in 2020 when their numbers were still really bad as far as profitability went and the stock price was super high to noon it’s actually gotten a little compelling i mean the 4p is under 40

For the stock and um you know it’s not it doesn’t trade nearly at the price of sales ratios they used to trade at and so i don’t know it’s actually a little little compelling uh the thing with me with zoom is i still haven’t been able to find if this is more than just a one-trick pony company i’ve done a lot of research in this one and i’m like man it just feels

Like a business video conferencing play and that’s cool but it’s just that feels like it’s right for disruption if that’s all you can be right they’ve got to be building a whole ecosystem they’re trying to but just seems like i haven’t seen them really like make great strides as far as like you know revenues uh profitability anything outside of just their their

Traditional kind of you know business model there but yeah that stock’s been absolutely devastated all right now next component i want to talk about is the weight of the nasdaq and how these stocks are weighted because this is really really important to understand why the indexes are holding up well and then we’ll get into essentially if i believe we’re close to

A bottom in a lot of these stocks or or you know still a long way away okay so when you look at the the weight i think the next question for the nasdaq right and just kind of the overall markets s p 500 as well and the dow for that matter right the next question is do these big dogs fall because these big dogs are what dictate the stock market at the end of the

Day these are what’s held up the indexes to make everything look better than it’s really is okay this is like the analogy i gave at the beginning of the video this is like you know imagine the street is just holding it up and uh rigged below it there’s just a big sinkhole underneath it just waiting for this street to kind of collapse and this is a street okay this

Is the little bit of uh you know asphalt there that’s kind of holding up the whole thing apple microsoft amazon facebook tesla nvidia google broadcom cisco netflix adobe costco pepsi and comcast these are holding the entire market up right now and the next question is are these the next stocks to fall essentially well i have some bad news and good news apple’s

Trading extremely rich based upon any you know past valuations that one’s a little scary microsoft same exact situation okay so you have a little little bit to worry about there the good news is for amazon this stock hasn’t moved really in in a long time i mean august august of 2020 august of 2020 this stock was 3 400 and it’s 3 200 here in january of 2022 okay

So the good news is amazon hasn’t really been doing much the good news is facebook’s really undervalued uh tesla is obviously trading rich but at the same time tesla always trades rich so i wouldn’t say this is much to worry about there because that’s one of those stocks it could be five hundred dollars a year from now could be two thousand dollars you know that

One’s still in price discovery mode nvidia nvidia is definitely trading rich okay no doubt about that google mcdougall not so much look at the google’s forward p it’s not not super high in my opinion at all uh broadcom cisco i don’t really cover those so i can’t really speak on those although cisco i would i bet is probably doesn’t have a rich uh 4p on it usually

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Cisco just kind of trades cheap netflix is trading rich but netflix always trades rich like that’s no that’s no news to us like we all know that right adobe trades at a premium to the market but adobe always trades at a premium to the market costco i mean that one you know trades rich but it always trades directly you know why because they put up ridiculous numbers

I saw just recently it was like a 14 comp number it’s tremendous pepsico is pepsico in comcast i don’t really cover that one so i can’t speak on that one specifically okay so when you look at this it’s kind of a mixed bag when you look at the waiting because some of these stocks you can make a very strong argument that they’re undervalued some of these stocks you

Can make about an argument that they’re overvalued and some of these you’re pretty you’re pretty in line so you’re kind of getting a mixed bag here and that’s why it’s hard to predict necessarily a downfall from the nasdaq because i mean facebook’s a steel steel at the current price at 300. i mean if this stock falls to 200 something it’s just a silly pricing at

That moment right if google was to drop 20 you know google’s google’s a pretty good deal right here if google stock falls google mcdougall falls 10 15 it’s a steal deal you know if tesla pulls back 20 percent i mean you know how many people are going to be out there buying tesla shares so that’s an interesting thing when you look at some of these companies it’s

Like well yeah some of them are trading rich but you know some of them are are not trading that rich amazon stock hasn’t moved in a year and a half you know and and we know amazon’s just getting into a bigger and bigger beast right and so the amazon could actually represent a really good opportunity in the market right now i i feel like actually amazon’s a pretty

Easy money over the next several years in the market over the next you know five years so that’s where you get in this conflicting situation where you’re looking and you’re like and this is why i can’t predict that the is going to fall 15 20 percent i can’t make that prediction if every stock was valued the way apple and microsoft are are valued i’d be saying

Yeah there’s a decent high probability it could be very possible that these stocks stagnate a lot of these stocks stagnate for a year they catch up with another year profitability right and then the the valuation metrics all come down for these stocks that’s definitely very much a realistic possibility that i think folks should consider you don’t always need

Stocks to crash to get them to more fair inline valuations never mind if some of these stocks stagnated for a year why they made great progress in their business then they would just become extremely undervalued in that sort of market right look at this this one puts it easiest for us right this one it’s back from you know the middle of december but not a lot has

Changed since then and basically apple microsoft amazon tesla nvidia google mcdougall and and facebook made a 52 of the weight in the nasdaq 100 in the nasdaq guys think about that those few companies right to some points up the s p 500 is heavily weighted toward technology-related stocks and 50 of the nasdaq 100 is made up of only eight stocks think about that

For a moment therefore the s p 500 has been led by just a few large tech related names in fact the same eight largest nasdaq stocks make up 27 s p 500 in other words more than a quarter of the market index’s performance is coming from eight stocks out of the possible 504 index components it’s incorrect and why is it nes was sp 500 with this 504 components okay

That’s what i have the question but it’s it’s it’s insane right and so they’re holding this kind of the whole market up right now so in my personal opinion i think we’re closer to a bottom in these stocks than a top in these stocks let’s put it that way well definitely not anywhere close to a top right we’re much much closer to a bottom and i think the the one thing

We need to just let play out now is these earnings over the next several quarters i think as long as earnings are okay or decent with a lot of these companies i think a lot of these these these stocks are poised to go up rapidly right a lot of these nasdaq stocks and several obviously that are smaller cap stocks i think that’s kind of the next kind of waiting game

Here the fed’s going to do what the fed’s going to do i think if anything the fed in 22 will end up not raising rates as much or uh you know maybe only raising once or twice in 22 i don’t think that’s you know a lot of people are thinking four times now i think it’s a realistic possibility that the fed only raises one or two times now and if this sort of situation

Plays out there right what’s that going to mean for stocks obviously right and so these are things that you know a lot of folks aren’t even aren’t even considering right now that i’m thinking about and i’m like you know so obviously you guys know where my chips are placed on the table but uh yeah i would say we’re much closer to a bottom than a top um just the

Question is do does apple and microsoft kind of come down or do they just kind of stagnate for a year and let valuations kind of catch up there so uh anyways guys hope you enjoyed this as always don’t forget to subscribe to the channel i appreciate you being here don’t forget to download the hungry bowl if you want to check out my private stock group private

Discord chat check out pin common down there to apply for that much love and have a great day

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