WARNING: STAY AWAY FROM THESE 3 OVER-VALUED STOCKS!
In a Nutshell
Markets sold off amid Iran rejecting a US deal and shaky ceasefire news, with embarrassing earnings from Coinbase (-4.75%), Coreweave (-9.8%, 53% EPS miss), Opendoor (80% EPS miss, 50% YoY revenue drop, negative 3.9x P/E, 27% downside), and Irene (38% EPS miss, 34% revenue miss, pumped 20-25% on unconvincing $3.4B Nvidia GPU lease deal). Speaker profited shorting Irene ($9K) and SNDQ inverse ETF ($7.8K), warns to avoid these gimmicky, overvalued stocks prone to pumps/dumps and hard crashes in uncertain times. Free live trading session tomorrow; join LPP team via description links.
These notes were generated by AI and may contain inaccuracies.
Markets began selling off as Iran rejected the US deal offered yesterday. Markets should sell off way lower, taking back everything gained yesterday down to 681, but are trading aftermarket hours nearly at 700 and pushed higher overnight because Trump stated the US has not broken the ceasefire deal despite attacks.
Coinbase: Reported one of its worst earnings ever, sold off 4.75%, recovered slightly in extended hours. Coreweave: Reported terrible earnings, down 9.8% on the day. Opendoor: Reported embarrassing earnings, only down 2%. Irene: Reported horrendous earnings, at one point up 20-25%; speaker shorted it, up $11,000 at peak, got greedy re-entering, closed with $9,000 profit.
Irene reported on May 7th: 38% miss on earnings per share, 34% miss on revenue. Stock pushed up 20% due to securing a $3.4 billion AI cloud services deal with Nvidia. Question raised: why does a GPU company like Nvidia need to lease GPUs from Irene? Without the partnership, stock would have crashed 10-20%. Internal team likely announced partnership to divert attention from atrocious fundamentals.
80% miss on earnings per share (expected loss of 10 cents, actual 18 cents); 26% miss on revenue. Revenue down 50% year-over-year. Trades like an AI business but is a house flipper funded by hedge funds with razor-thin margins. Fair value: 27% downside. Trades at negative 3.9x P/E ratio, loses over $1 billion a year. Terrible business in worst housing market; new management claims quicker turnover and buying more properties, but still losing more than expected.
Sign in to read the full notes
Get access to AI-generated notes, topic timestamps, and more.