The Best Stocks To Buy This Week

Joseph Carlson (0:00)

Today on The Joseph Carlson Show, we get into the second week of earning season, and this is where things really start to ramp up. For example, we have companies like SpaceX and Netflix and Meta and Tesla all reporting over the next couple of days, plus a lot of other ones. We have GE and Spotify, Lockheed Martin. We have Bloom Energy and many other interesting companies reporting this week. Now, I'll be going through, giving you my thoughts on what's gonna happen. What's gonna happen with SpaceX or Netflix? What I think investors should be expecting this week.

And this is also an interesting week because we have many investors that are becoming a little concerned about the AI build out. This is where it seems to be hitting some type of critical peak. Like just on Friday, there's a lot of people talking about how this is going to devolve into Black Monday, a big sell off today.

It doesn't look like that's happening, but there are growing concerns about the AI bubble. When things will finally start to break. What's going on with CoreWeave? Even some of the biggest promoters of the AI wave. People like Brad Gerstner that are on the inside, bullish on these companies, has taken a lot off the table. He's reduced his exposure for specific concerns in protecting his clients' gains. We'll be looking at an interview where he explains why he's doing this. So we have all of that to get into, plus the fail of the week, which in this case is ESPN, a decorated ESPN reporter recently quit because she doesn't want, quote, blood on her hands. We'll be looking at what ESPN has done to compromise its own values in the fail of the week. So this is going to be a jam-packed episode, but there's still a ton to get into. And before we jump in, as a reminder, check out qualtrum.com. The Qualtrum membership, I believe, is the best value membership on the market today. Not only do you get access to qualtrum.com and the entire stock analysis suite. After building the software layer of Qualtrum, I didn't stop there. I also built a custom Netflix-like library for exclusive content. For example, the most recent exclusive video here is a full October portfolio update. It's about an hour and a half long. I go into an entire thesis overlooking the markets. Before that, I have an hour long deep dive on the machine behind Wall Street, credible company that most investors don't even know about. And in addition to all of that, included in the membership price is a moderated Discord community that I own, and I'm in every single day discussing stocks. So you also get access to that. When I list off the things that this membership includes, most people assume it will cost around $40, $50 a month. It's $10 a month with a seven-day free trial cancel anytime, or you can get an annual plan for around $8.50 a month. Try it out now, risk-free, and I'll see you on the Discord. Now to start things off, I want to jump in to some of the biggest companies reporting earnings this week. And I'll start off with tomorrow aftermarket close. That's where we get into SpaceX and Netflix. Now let's first go ahead and jump in to SpaceX. SpaceX is conceptually one of the most complicated companies on planet Earth. But if we look at the actual numbers, we can try to simplify things here. We have the revenue by segment. There's only four bars here because there's literally only four quarters of data that we have. It's a brand new IPO. But we can look at the data here. We have three different categories, connectivity, space and AI. Out of these three businesses, I believe the connectivity is actually the best business. This is where you get into them providing internet access with low orbit satellites all across planet Earth. I have two Starlinks. I have the Roam and then I have the Starlink 3 or something. I use them when I go camping. They are incredible. You plug them into USB or into a power outlet, and then in 10 minutes, you have high-speed internet connection. Enough to stream movies, play games, do whatever you want.

It's incredibly reliable. It's easy to use. You just need to have a clear view of the sky. Starlink is the real deal, and that is their connectivity. This has massive implications because up until now, there's been a couple of big cable telecom companies that have really controlled that category, and Starlink presents a brand new risk to them, a brand new growth avenue. It's also going to offer internet to places that could not get to internet before, it wasn't feasible. And they also have massive commercial contracts, like they're getting contracts with lots of airliners to have high speed internet in commercial airplanes and so on. And you're going to see massive growth there because it's just a huge untapped market. Amazon is a competitor in Starlink. They have their Leo. It's not really as proven as Starlink yet, but they are well on their way. So it's not going to be a complete monopoly. This is going to be a shared market, but it's still a very strong one for SpaceX, and they have the huge lead here. So I would say out of these three categories, I'm the most bullish on connectivity. Now connectivity is this bottom dark blue part, 65% revenue growth year over year. So super fast revenue growth. The next one that we get to is space. Think of this as like the Uber for space. They're just taking rides and letting people use it to launch satellites, whether or not it's a private company like Amazon, or whether or not it's a government entity, they're going to allow for transportation and take a fee for doing that. But I wouldn't look at this as an isolated category, because what they're doing really helps out with their connectivity business. So these are directly related with each other. Then you have AI, which is the XAI that's now part of the company. They have essentially a NeoCloud business, allowing companies like Anthropic and Google to rent space on their clouds and infrastructure that they built out. The reason they're making so much money is they're not tying their customers into five-year agreements or even long-term contracts. The contracts that the AI category is signing are mostly 90 days. So Google or whoever could get out of these contracts relatively fast. And Elon with SpaceX knows that demand is so huge right now, these guys are not going to cancel their contracts. They're not going to say, hey, our 90 days are up, we want to get out. They're just going to keep paying and they're paying far above market rates for the ability to cancel. So this is a very lucrative business. When I look at this business overall, the AI business is going to be the fastest growing by far. But it's also the one that's the most questionable long-term. Because when demand finally does settle down a bit, again, they aren't really tied to these long-term multi-year contracts. But in any case, in the next couple of years, it's going to make a fortune. When I look at the business, my biggest complaint about SpaceX is just the opportunity cost. For example, when we look at the market cap, it's at a $2.56 trillion market cap. So around $2.5 trillion. In the last 12 months, the company did $12 billion of revenue. Now, that's going to go up fast, it'll go up to $40 billion or $50 billion.