Presented by

Stocks of the Week!

In this email:

• Betting Now Could be Your Golden Ticket! 🎫

• Why Investors Hit the Panic Button! 🚨

Betting Now Could be Your Golden Ticket! 🎫

Tesla’s been on a bit of a skid this year. Down 28% YTD. Down over 31% for the past year.

If we’re going to follow the mogul Warren Buffett and “be greedy when other’s are fearful” this could be a great opportunity to double down on our Tesla positions… so is it?

Let’s take a look 👀

Back in 2018, Musk’s $56 BILLION pay package got blocked by a Delaware court. I can’t think of faster way to make a superstar entrepreneur lose interest in a project than swiping his billion dollar pay package after he’s done the work. And that’s exactly what investors were worried about.

That was about time Elon’s focus seemed to shift from Tesla to his shiny new AI venture, xAI too.

But here’s the good news *drumrolls*🥁

Musk just got his pay package re-approved! 🎉

So what does that mean for me & you? Why should we care that a billionaire is getting more billions?

It means he’s got a major incentive to get Tesla back on track. And if he can get Tesla back on track & we’re invested, we get more money too!

Elon’s a stud of an entrepreneur so if we can get a fully engaged, ready for battle Elon to lead Tesla with passion again…. shut up & take my money!

And we don’t have to just rely on Elon making existing processes more efficient. There’s space for Tesla to expand & capture other markets. The talk of Tesla’s robotaxis becoming a reality. Imagine owning a Tesla that drives itself around, earning you money while you chill at home.

If they can pull it off it’d be like baking Uber into an existing company, And if they launched their own fleet of robotaxis they wouldn’t have to pay any taxi drivers.

Sounds like a sci-fi movie but a few hedge funds are bullish on this move. That includes Cathie Wood who dropped a $2,600 price target for 2029 🤯

That’s a bit much in my opinion but I do see a world where Tesla will hit previous highs & beyond. That’s give us over a 130% return.

But we do need to keep this in mind.

Tesla’s stock (even after this slide) isn’t cheap. If you look at traditional financial metrics it’s a bit pricey.

But here’s the thing – Tesla isn’t just a car company. So you can’t really value it the same way you would other car companies.

And they’ve got a few opportunities they can take a swing at to see crazy growth & hit a trillion-dollar opportunity out the park.

Robotaxis, AI, Optimus robots - you won’t see any of that on the Ford plan of action.

Right now, Tesla is trading at multi-year lows. I think this is a golden opportunity to build a low cost basis on a bet that’s worth the risk.

Elon Musk is back in the game, fully charged, fully paid & ready to push Tesla to new heights. ⚡

Sign me up 🖊️

Quit sending emails like a dinosaur.

It’s the year 2024 and all the top newsletters are using beehiiv.

beehiiv was created by the same early Morning Brew employees who scaled their daily email to over 4 million subscribers. And now every newsletter on beehiiv has access to the same tools and winning formula.

So what exactly does beehiiv offer?

• World-class growth tools like the referral program and recommendation network

• Monetization via the beehiiv Ad Network and premium subscriptions (i.e. beehiiv helps you get paid)

• Seamless content creation with a sleek collaborative editor

• Best-in-class inbox deliverability of 98.7%

• Oh and it’s the most affordable by a mile…

Take your newsletter to the next level — get started for free.

Why Investors Hit the Panic Button! 🚨

Here’s another one that’s having a stinker in 2024… Comcast!

Down 14% YTD - get your shopping bags out 🛍️

Their Q1 earnings report beat expectations on revenues and earnings but still took a 6% dive on the day. Stock price is still floating around that post-dive price & trading the lowest it’s been since around April 2023.

Now if a stock takes a dive like this & the foundations of the company look crumbly - stay well away ❌

But that’s just not the case here - here’s some numbers you should know.

• Earnings Per Share (EPS): Non-GAAP EPS came in at $1.04, beating estimates by $0.05 and up $0.12 from the same quarter last year.

• Revenue: $30.1 billion, beating the consensus by $300 million and up $400 million from Q1 2023.

• Free Cash Flow: Up nearly 20% to $4.5 billion.

• Broadband Revenue: Residential broadband revenue saw mid-single-digit growth, hitting over $6.5 billion.

• Wireless Subscribers: Up 21%, reaching 6.9 million customers with a 13% increase in wireless revenue.

• Peacock Growth: Revenue surged 54% to $1.1 billion with a subscriber base hitting 34 million, up 55%. 📺

Seems like a miracle buy with those kinds of stats, right? So what are the bears seeing that we’re not?

Let me put my bear mask on… 🐻

Even though revenue was up, the pace of growth wasn’t super impressive. Revenue was only up 1% year on year & net income was less than 1%.

Streaming services reported a loss of $639million. Speaking of losses, they also said goodbye to 65,000 domestic broadband customers & 487,000 domestic video customers in Q1.

The bear case is that a decline in cable and media businesses is a major headwind. Plus, the losses in broadband and video subs could mean Comcast just aren’t growing as fast as they need to to offset the declines.

But here’s why none of that matters as much as you think it does.

Comcast have a monopoly of over 200million people. For a lot of customers in the US, Comcast is the only option.

That’s one way to guarantee stable revenue & profits numbers even if they don’t look as sexy as hockey-stick tech growth numbers.

Now, I would say that monopolies aren’t ideal for innovation in a company. No competition can make you lazy & complacent. But that’s not what Comcast are doing.

Comcast’s Xfinity is rated the fastest broadband service - super appealing to the growing crowd of gamers & streamers who need big fat connection speeds.

And they’ve got even more upgrades in the pipeline.

With their huge moat, healthy balance sheet, 3%+ dividend yield & limited downside risk I can’t see a reason why you wouldn’t want to have them represented in your portfolio.

Their Q2 2024 earnings are out next month so if that keeps the trend, I’ll likely be scaling the position size. Will keep you posted when they come out!

That’s all! See you same time next week 👋 

P.S Hit reply & let me know what you thought of this weeks newsletter. All feedback is welcomed ❤️