Avoid These 10 Overhyped Stocks Before It Destroys Your Portfolio

0:00 Let's talk about the top five overhyped stocks.

0:04 I'll put yours over there. I see you got a paper. I don't want to look at yours. I have to put pen to pad today. What you got?

0:13 I like the company and I like the leadership, but I think the valuation is off.

0:18 Number one, I'm going to start with Oracle. Okay.

0:23 The credit default bond issue is a real one. Do I think they'll protect it? Now, this is the only story that kind of reminds me of 2008 with the rating agencies kind of skewing things so it doesn't go under. And I don't want the company to go under because it will lead to a collapse and a succession of events that will negatively affect America. But I think the valuation was too high, and I think the market has reflected that.

0:47 That's number one. Number two, I like the entrepreneur. I like the business strategy.

0:51 I'm trying not to ruin any relationships for us going forward.

0:56 But micro-strategy.

0:58 OK, they're going to be where there's a conversation about if they should be removed from the index. I think there's tremendous value there. And I'll keep saying it. There is a concerted effort to not let Michael Saylor control. Bitcoin and be the lead face of it by. Entities around the world. So that's number two. And a getting rich relationship part, you have to know who to not piss off.

1:24 So you don't end up on a blackball list. He's currently on there. Number three, QBTS. Ah, okay. I love Quantum.

1:35 Okay.

1:35 I love all the executives there.

1:38 But remember when y'all were screaming at me last year about Quantum and you.

1:41 Don't understand the technology. I don't understand it.

1:45 Where are you D-Wave Quantum babies at now? Google will be your main competitor if it's value. Number four, Rigetti.

1:53 Ah, okay. Now we got one that matches. spaghetti i think has an amazing promise and premise of the future but it's not delivering this year and i don't think it will next year either and uh final ticker is oklo oh overrated overhyped okay um you think overrated you can name 25 other companies that are better.

2:21 They're so niche that it's tough for me to say overrated just yet.

2:25 I'm not going to knock yours. I understand why you said it.

2:28 But when we're talking about expedited power and we're talking about nuclear power.

2:35 I don't think they'll be the one, though. They'll be maybe second or third. And this goes into the selection process. Not every company who makes it is solely because... They were the best product. They had the best funding. A lot of these companies are selected to be the leader over the next 10 years. I just wonder if they won't be selected over the next five to 10.

2:59 Okay. What about you?

3:01 So I have Rigetti on there, but I'm going to have some. Now, I don't think that they don't necessarily have to be bad companies. I think they're overhyped.

3:09 Yes.

3:09 And overrated. Yeah. My first one is IONQ. Listen, I thought about it, but I ain't want to double down.

3:17 Yes.

3:18 That doesn't mean that it's a bad company. That doesn't mean that Quantum won't play a role in the future.

3:22 It will in the future. It just won't be playing in the near future. Yeah.

3:27 And I think you're right. I think you're spot on in terms of where Google's at in terms of Quantum. So that's number one. Number two might be a surprise. I think Tesla is on my list. Overhyped and overrated.

3:38 Dottie, what you got to say to that? For.

3:43 Again, I just have a tough time, especially like I'm reading every day, every single day I read. I just have a tough time finding a company that its technicals and its fundamentals don't match. And he doesn't love that company. And year after year, it's the same thing. And it's not cars. And eventually, I think next year we'll see a merger. But presently, as constructed, I'm just like.

4:09 I told y'all three years ago, he doesn't love that company. he's going to be chairman and leave Dustin. So I agree. So number four is Alibaba.

4:20 Yeah.

4:20 Yeah.

4:20 You know what? Every control.

4:22 Yeah.

4:22 Every time I think that, okay, Alibaba is going to, it's going to have a turn here.

4:27 I mean, it's, it's, it's had some down years. Let's just say that. Right.

4:31 Every time I think it's, this is going to be the year or this is going to be the innovation. Oh, they're like a cloud business. oh, they're going to play a part in the AI story for China. It's just like the stock just never rewards you for putting it on your watch list or some people having their portfolio. Now, can that change? I just don't... Which one are they?

4:55 Are they the Amazon or are they the Google or are they a hybrid of both for the Chinese economy? He's another person that got blacklisted.

5:02 True. So that was for....

5:07 Almost um yeah i had those are my four those are my four i was i had a fifth one i was like you know what let's just hold off because you know you never know because you never know but.

5:21 Yeah i think overhyped.

5:25 Doesn't necessarily mean bad company yeah it's just evaluation.

5:28 Just just a bit over i okay i'll just say palantir was my number five that's a hot okay.

5:36 What about you? Valuation is just out of control. Doesn't mean bad company.

5:39 You got to start looking at Netflix.

5:42 That's a good thing.

5:43 You got to start looking at Netflix as far as that, you know, Mag7 and all that.

5:53 Mag7 did?

5:54 No, they're not Mag7. No, but I'm saying they lumped in. They lumped in with that elite level of tech companies. I mean, they distribute content. Now, you could say Meta is not vitally excessive either, but I would say Meta is a communication company and a media company. So Meta, to me, is an essential business. Oh, Meta's going to be fine. You got them on your list? No, I'm saying Netflix is not an essential business.

6:23 No.

6:23 Nobody needs to have Netflix.

6:25 And the cost of acquisition for the content is huge.

6:28 Exactly.

6:29 It's too thin. Their profit margins are too thin. They're paying too much. And they got a bunch of competitors.

6:34 Yeah, YouTube.

6:35 They can't compete with YouTube. They're trying anything. Now they're trying podcasts.

6:39 They are.

6:40 They're saying the music, they're going to become the record label.

6:43 The cost acquisition thing is very scary. And I could have miscalculated this. Correct me.

6:50 I thought the live sports would play a bigger role. And it's not happening. They have slowed down on acquisition of content. but they are still paying a lot to produce content. So I'm not mad at that choice. What else you got?

7:07 Yeah, that's a fire one. Yeah, that's the first one that comes to my mind. Because like you said, when you think about Fang, what do you have?

7:13 You have Facebook.

7:15 It wasn't there. NVIDIA was there. No, no, Netflix was there. Well, Facebook at the time. Apple, Amazon, NVIDIA, and Google. I thought, is it not Netflix? No, their valuation's not high enough.

7:28 But at that time.

7:29 At that time.

7:29 At that time.

7:30 It could have been.

7:30 We tried to make an acronym. That was before the NVIDIA run. It could have been an acronym with them. But NVIDIA definitely was the end.

7:36 I don't know. I think it was Netflix.

7:39 People was calling me crazy at the time for putting NVIDIA in. Then we had to change it when Facebook became. Facebook, Amazon, Apple, Netflix, and Google.

7:47 Yeah, it was Netflix.

7:48 It wasn't NVIDIA?

7:49 It was before the NVIDIA.

7:50 People was calling me crazy if he'd been saying that it should replace Meta.

7:54 But the N got replaced. Yeah.

7:56 Because that's before NVIDIA started to go crazy.

7:59 So Netflix was a staple in the tech hierarchy.

8:05 Yes.

8:05 Can it rebound?

8:07 Like I said, if you look at Amazon, Apple, Google, and I would argue Meta too.

8:15 Those are all essential companies. This is an entertainment company.

8:21 The same mistake that I won't pick on anyone, but that they're making an AI spending, they made in content first.

8:29 Yeah.

8:30 Like even a deal structure from the very beginning, it's a tough business to be in. When you have a Google who is paying you per performance with all the resources, that's a tough thing to be.

8:42 I think they, I don't think they're done. They're still number one.

8:47 No, no, no.

8:47 They're not done with the valuation. The valuation, I mean, it's trading. I mean, it was down, it got to 63. I don't even know if it's at 70 yet, but. It's at 69 right now. Where they missed, and they probably are kicking themselves now, and maybe they can correct it, was the in real life experience. Right?

9:04 So like, Twitch came and got them.

9:08 What's the other streaming platform?

9:11 Kik. Kik.

9:12 These platforms, I mean, they have the technology to do it. They kind of missed on the in real life experience and it's still happening. When I watched some of Kai's like streaming university and I'm watching all these TVs with 150 different creators, that's live content.

9:27 That's daily. Each creator. Each creator. Every day. And you could be housing that on your platform. Remix.

9:35 That didn't work. That didn't work. But look, I mean, look. Profitability.

9:41 They tried.

9:42 I don't think it's over yet, but they got to figure out then, because like you said, if they're trying.

9:47 To compete with YouTube, they can't compete.

9:48 YouTube is getting free content.

9:51 They're paying for the content that YouTube's getting for free.