Stock Market Crash Coming: Here's How to Profit
In a Nutshell
In a market pullback driven by Middle East tensions, use Investing Pro software to analyze stocks like Meta (down 34% from highs, PE at 22x, fair value upside to $862) by scrutinizing PE ratios, fundamentals, cash flow, bull/bear cases, and analyst projections—looking for reasons *not* to buy as much as to invest. Warren AI reveals Meta as the best MAG 7 value deal per PE dollar, Nvidia for growth per PE, and Tesla as most expensive despite hype. Avoid buying dips blindly; the tool (on sale for $9.50/month via affiliate link) equips informed decisions amid crash risks, prioritizing position sizing and long-term fundamentals over technicals.
These notes were generated by AI and may contain inaccuracies.
With markets currently down, investors should ask if now is a good time to buy the dip. Ricky introduces one of his favorite trading and investing softwares to determine if getting a good deal. Reminder: if only looking for reasons to buy stocks, doing it wrong. Use softwares to learn more about a company to see if it meets criteria for investing or not. Look for reasons not to invest in companies that don't meet criteria. This is how to use Investing Pro (first link in description).
Investing Pro takes trading and investing to the next level. With tensions rising in the Middle East, markets have pulled back.
NASDAQ market trading at 560. NASDAQ QQQ (NASDAQ ETF, one-for-one, brings down big tech on selloff). SPY (S&P 500 ETF, great for long-term investment). Meta significant downturn, trading at lows of 526, previous highs of 794. Microsoft near 2025 lows, previous highs of 552, current lows of 355.
Just because the market is cheap doesn't mean that it can't get cheaper.
Remember position size management and knowing how and when to invest from previous videos. This video focuses on using software to determine if getting a good deal. Favorite indicator: PE ratios (premium paid to own the stock).
Companies like Palantir traded at extreme premium due to hype in bullish markets. Most hyped stocks experience largest retracements in downturns.
Download Investing Pro (first link below). Go to watchlist or idea section. Type in ticker symbol (e.g., Meta). Provides recent updates, exchange data, price, day change, 52-week range.
Fair Value and Analyst Targets
Fair value based on average according to Investing Pro: 5.88 (from 60 analysts, average price target 862, current price 525). 12% upside based on Investing Pro model; more upside (862 target).
Look at series of reports (green or red). Not just reasons to invest, but reasons not to. In uncertain times, check if company has cash flow and cash reserves to tolerate downturn. Under Meta Pro Research tab (every stock has it): dive deeper into how company is doing. Charts limited; fundamentals matter long-term.
Inform to become better trader/investor: reasons not to buy. Technically like a stock, but fundamentally not growing quarter-over-quarter (e.g., revenue). Executive summary might not align with criteria. Fair value upside, financial health, growth rating, profitability rating, cash flow rating. Overall valuation series for years (2026, not just today/last year). Companies reach insane valuations in ideal times but give back in uncertain times (hype stocks/meme stocks). Irrational valuations supported in irrational times. Helps identify outliers: significant year with huge growth but little fundamental return (e.g., nuclear energy, fusion energy, AI companies down 50-80% from all-time highs).
Pro tips: bull pro tips and bear pro tips. Analyst projections for this year and following years. Detailed look at analysts' ratings, targets, issue dates (e.g., TD Cohen new price target for Meta). EPS revisions, LTM financial models. Meta $60 billion profit (overall year). Models for 2025, 2024, 2023, 2022; compare/contrast growth. Visual charts show fundamental alignment.
Q4 Financial Models
Balance sheet: total current assets, total current liabilities, total equity, total debt. Cash from operations, cash from investing, cash from financing, leverage free cash flow (important in uncertain times).
Technicals signal sell (aggressive selloff), but for investing (not trading), fundamentals encourage tolerating downturn for potential recovery. Markets down now, but if Iran war deescalates: oil prices drop, inflation fears fade, bond market/Fed expectations fade, possible rate cuts, better 2026 outlook.
Look for reasons not to invest/trade (avoid overtrading/regret). Software informs technically and fundamentally if company meets criteria: bull case and bear case. Beginners need understanding of why not to invest.
Data Explorer
PE ratio at 22X (valued at 22 times earnings; industry standard, pretty low). Revenue growing, net income $60 billion.
Warren AI (chat GPT tailored for investors, provided with Investing Pro). Queried: from all-time highs, how much are MAG 7 stocks down?
- Apple: down 21%
- Microsoft: 35%
- Amazon: 23%
- Alphabet: 62%
- Nvidia: 21%
- Tesla: 27%
- Meta: 34%
Follow-up: Which MAG 7 best deal based on PE ratio?
- Broke down PE ratios for Meta, Alphabet, Amazon, Apple, Microsoft, Nvidia, Tesla.
- Warren AI take: Not all cheap equal. Takeaway: value, growth, or both.
- Lowest PE (best deal per dollar profit): Meta.
- Most growth per PE dollar: Nvidia (expected to grow most).
- Most expensive (even with growth): Tesla (Elon Musk, possible SpaceX IPO momentum).
Informs to invest or not in companies meeting criteria. Goes deeper (review Warren AI/Investing Pro for more).
Current sale: Investing Pro < $10/month ($9.50). First link in description (affiliate link). Worth it for informed decisions? Positive feedback. Invest in software for better trade/investment decisions. Trade live every morning (second link). See you Monday when markets open.
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