LIVE NOW: META & TESLA REPORT EARNINGS 2026
In a Nutshell
The speaker is trading earnings around META and TSLA, shorting META after its post-earnings gap up while holding a profitable MSTR short based on overbought reversal patterns. META and TSLA both beat earnings but face valuation concerns, with TSLA at a 400x P/E despite declining core auto business and META's capex guidance being the key risk. Risk management is emphasized throughout, with advice to size positions according to volatility and maintain strict discipline around stops and profit-taking.
These notes were generated by AI and may contain inaccuracies.
Markets are pushing higher with SpaceX reporting earnings yesterday. SpaceX moved from highs of up 12-13% on the day and has given back half of those gains. Current levels show 4.7% from previous lows around 157, representing a 5.6% move.
The reported earnings exceeded expectations with promising guidance. Discussion of potential overpromising includes the Tesla Roadster, announced 11 years ago and now delayed another two years. The speaker expresses admiration for Elon Musk while noting a pattern of overpromising across his companies.
Tesla trades sideways, up 3.3% on the day. Meta experiences volatility from news of a potential $25 billion fine in a New Mexico data privacy case, dropping from highs of 704 to lows of 690, a 2% move. Market cap stands at $1.79 trillion. Investing Pro software is referenced for technical and fundamental analysis.
The speaker holds 10 shares of SpaceX from earnings trading. A small short position on MSTR is disclosed, opened with the LPP team. The short was initiated based on an overbought reversal pattern with gap down potential, though no active sell-off confirmation exists. The position has been profitable, up $1,000 at peak and currently up $700.
The short position was opened after initially going long on MSTR earlier in the day. The speaker does not carry shorts overnight and emphasizes that this is a trading account, not an investment account. The strategy focuses on overbought reversal patterns with favorable risk-to-reward ratios. MSTR is characterized as a "Ponzi scheme" and "worthless company" that gets diluted frequently, though the speaker acknowledges its meme stock qualities during Bitcoin rallies.
MSTR has been down 70% from recent highs and failed to make new all-time highs when Bitcoin did in 2025. The speaker prefers buying Bitcoin directly over MSTR due to dilution concerns, where shareholders effectively provide Michael Saylor with borrowing opportunities.
Oracle is viewed as a leverage play compared to hyperscalers. The speaker finds it attractive at current prices but notes market sentiment remains weak. Concerns exist around Oracle's AI infrastructure investments and Larry Ellison's leverage through Paramount and Warner Brothers acquisitions.
MU was traded at $1,400 levels, with the speaker buying the dip as it became oversold and taking profits during recovery. No further trading occurred on either MU or MS.
The speaker plans to exit MSTR positions before market close. Today's session was relatively stagnant for MSTR, holding elevated levels despite overbought conditions.
Oklo is characterized as an overhyped company with no expected revenue or profit until 2030. The speaker remains consistent in this view from 2025 when the stock was making aggressive highs. Recent shifts toward "neocloud" companies like CoreWeave and NBIS are noted, with some experiencing sell-offs.
Markets tend to de-risk before major earnings releases. The speaker identifies calculated investors sizing out of positions to better tolerate volatility. Meta is expected to perform well, while Tesla is viewed as a "fading business" in its core car operations.
The speaker owns multiple Tesla vehicles including two Cybertrucks, a Model X, and has a Roadster on preorder since 2019. Concerns include rapidly depreciating vehicles and low consumer demand. Optimus robot developments are desired but viewed as excessive talk without follow-through.
Meta's primary concern centers on capital expenditure guidance for the next quarter and year. Excessive investment could trigger selling despite earnings beats. Insufficient investment could negatively impact neocloud companies like NBIS and CoreWeave that generate revenue from Meta's spending.
Tesla trades at the highest P/E ratio among the Magnificent Seven companies. The speaker questions the $1.5 trillion valuation given 48 cents earnings per share, representing a 400x P/E ratio. Current business lacks proven revenue from Optimus robots or full autonomy vehicles.
Meta begins reacting to earnings with upward movement toward 713. Tesla also moves green initially. Markets show excitement with Tesla up 3% despite EPS being down 38%. Both companies beat EPS and revenue expectations.
A 25-share short position on Meta is opened at $71,000 notional value as it gaps up 4.8%. Additional 25-share shorts are added during consolidation. The speaker maintains long-term Meta investment but trades short-term movements with small positions.
Netflix beats both EPS and revenue expectations but drops 6% on lower guidance. The speaker contrasts market reactions, noting Wall Street's leniency toward Tesla versus stricter treatment of other companies.
IBM reports strong results with 5.6% gains, one of the best reactions observed. The company exceeded EPS and revenue expectations. Stock had been down 33% from highs of 330 to lows around 250 before rallying to 264.
Options trading is discouraged for beginners. Emphasis placed on learning risk management and position sizing before attempting complex strategies. MSTR example illustrates that position sizes should reflect inherent volatility - smaller positions for more volatile stocks like MSTR versus larger positions for stable holdings like QQQ.
The 100-share Meta short position represents skin in the game rather than a major bet. The strategy involves waiting for market reactions to earnings and either following or fading the move based on overbought reversal patterns. Average entry price is considered favorable for tolerating volatility.
Before joining the team, viewers are encouraged to watch a recent live session using the second link in the description. The program goes live every day at market open for 30 minutes to an hour. Even if viewers cannot watch live, they can rewatch the sessions and get access to the LPP lesson library. The membership is a one-time payment with lifetime access. Members who signed up in 2018 paid once and still receive all updates and access to live trading sessions today.
With the October sale currently live, the membership breaks down to less than a cup of coffee a day at $1.30. The program provides structure and access to daily live sessions. Everything is linked in the description below.
Viewers are encouraged to use the Investing Pro software which the speaker uses every day. It is linked in the description and breaks down to less than $10 a month. Everything mentioned is linked in the description below.
"It doesn't matter if you're right or wrong when you're just getting started. Just learn how to manage and mitigate risk."
"Loss is inevitable. Your job is simply to manage it."
Congratulations are extended to investors who took profits when it made sense to them. The speaker emphasizes that when having a tough time trading, viewers should not kick themselves while down. The speaker is available via direct message to share helpful YouTube videos covering position size management, taking profits, being more selective with trades, or avoiding leverage.
The speaker warns viewers about fake accounts pretending to be them. The speaker is verified on every platform including YouTube and Instagram. The team will never reach out to viewers, never ask to trade for anyone, and will never message randomly or send friend requests, not even on Discord. There are accounts pretending to be the speaker over email, Discord, and WhatsApp. These fake accounts often have misspellings with the first and last name. The speaker has a Hispanic last name which can be difficult to spell.
The speaker offers only one service: the LPP live trading session, linked in the description below. The speaker will never message viewers to join and encourages reporting any accounts that pretend to be them.
The speaker concludes by thanking viewers for their time and wishing them well with their trading endeavors.
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