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  • Investors threw more money into the stock market in the first 5 months of 2021 than

  • in the previous 12 years combined.

  • Everything was growing so tremendously that no one could stand aside and watch how the

  • world is making money.

  • Even kids jumped in and traded crypto, at least.

  • It felt like the entire world has been trading crypto in the last 2 years.

  • People saw crypto as a way to finally make a few million dollars and escape the rat race.

  • Especially since we had a few crypto millionaires who earned fortunes on dogecoin.

  • Crypto enthusiasts made a strong case that if dogecoin reaches a dollar, we are all going

  • to become super-wealthy

  • However, now it doesn't even worth 10 cents

  • But nothing illustrates more accurately the last 2 years than the case with Gamestop.

  • What happened there was only possible in theory and should have never happened!

  •   But it happened!

  • Through a Reddit form, retail investors collectively pushed the stock price so dramatically that

  • hedge funds with billions of dollars and the best analysts under their supervision couldn't

  • defend themselves

  • In fact, they lost 13 billion dollars.

  • It got so bad that brokers literally started preventing retail investors from buying GameStop

  • shares.

  • This case is going to go down in history.

  • But the roller coaster is over.

  • Now, no one wants to invest in the stock market

  • The bright days are over

  • Everyone is selling off even though we have massive inflation.

  • No one wants to hold stocks that are losing value faster than a crashing plane.

  • Many people might be exhausted seeing their portfolios down by 30 or 50 percent, but let

  • me calm you down because these are normal periods in the stock market

  • Besides long-term investors, there are traders who consistently earn no matter if the market

  • is rising or falling, and then there are periods when it's time to sell.

  • A rise in interest rates is the number one indicator.

  • So, we just had a period of a massive sell-off.

  • The market will bounce back.

  • The good news is that the market is filled with undervalued stocks.

  • Most tech giants will gain back their values, but the question that interests me the most

  • is - what are the most undervalued stocks?

  • Which stocks lost most of their value?

  • And which ones will not just recover but will thrive?

  • We will answer all of these questions and many but before we do that, here is a little

  • disclaimer, this is not financial advice, and everything that's said in this video is

  • for educational and entertainment purposes.

  • Netflix Netflix isn't having its best days.

  • The stock fell so much that even Bill Ackman got rid of all its Netflix stocks, losing

  • 430 million dollars.

  • In the last two years, the pandemic was the ideal reason for people to sign up for Netflix.

  • That's why the company experienced some of its best years ever.

  • You don't have many entertainment options sitting at home.

  • You can either play video games or watch something, and Netflix solves one of these problems

  • The stock price almost doubled during the pandemic and peaked at 690 dollars in November

  • However, that's when the good news ended.

  • Since then, the stock plummeted first by 42 percent and then by 55 percent, bringing it

  • down by a total of 72 percent

  • The stock is back to where it was in December 2017, as if it didn't gain anything in the

  • last 5 years.

  • The only difference is that, back then, it had around a hundred million subscribers,

  • and now it has 220 million subscribers.

  • In fact, if you look at its P/E ratio, it's 17, which means it will take the company 17

  • years to pay you back

  • That number sounds big, but for a tech company, that's low since tech companies, on average,

  • have a 25 to 30-year P/E ratio, and some, like in the case of Tesla, have 90. 

  • Yes, of course, a drop in subscribers is worrying investors that the company has reached its

  • peak, but if you look at it objectively, it hasn't.

  • It's just the beginning.

  • 2.

  • Pinterest

  • Pinterest is a weird social media platform.

  • It's not popular like Instagram or TikTok, but it has always been there.

  • You either use Pinterest and know how helpful it is or don't and have no clue why anyone

  • would ever use it.

  • It had its momentum during the pandemic, where the stock grew by almost 400 percent, but

  • since then, it has lost almost all of its gain.

  • It's even lower than its pre-pandemic level of 22 dollars per share

  • Pinterest has also been losing subscribers since its peak of half a billion users in

  • 2021, but it is nowhere close to becoming irrelevant

  • It's the place where designers, photographers, artists, and many more come for ideas

  • Do you have a photoshoot and looking for ideas?

  • Pinterest is the best place for that

  • Designing your house

  • Pinterest is the place to go for ideas!

  • Looking for an outfit

  • Pinterest is the place!

  • Of course, Instagram and google images are also an option, but Pinterest is far better.

  • Its PE ratio is 35, which is not bad for a stock that has been in the market since 2019.

  • What separates Pinterest from the rest is that its ads are almost indistinguishable

  • from other posts on the platform.

  • If people hate ads on social media, then it's a completely opposite story on Pinterest.

  • Pinterest growth might be much slower than that of Instagram or TikTok, but its gradual

  • growth makes it more predictable and stable.

  • 3.

  • coinbase

  • It might not sound convincing to suggest Coinbase if you take at what's happening to crypto.

  • Some coins that looked like they had a bright future literally vanished.

  • Leave alone the number of scams that are taking place in this industry

  • Regardless, crypto has a future, and it's going to play a much bigger role with each

  • passing year since moving around money with crypto is far more convenient than traditional

  • banks

  • Coinbase is one of the largest crypto exchanges in the world, and now it's down by 80 percent

  • since its peak.

  • Will it go back to 350 dollars as it was at its peak

  • Probably yes, but most likely not this year.

  • 4.

  • Nvidia Nvidia was one of the best-performing stocks

  • in the last two years.

  • The stock grew by over 500 percent.

  • That's not surprising since the pandemic created a huge shortage of chips and graphic cards

  • in the market

  • In fact, one of the main reasons for high inflaiton is that there aren't enough chips

  • to produce electronics since chips are the most important part of any tech.

  • Everyone thought we were about to solve the problem, but the war in Ukraine and the new

  • variant of the virus kept creating supply chain problems.

  • The stock definitely suffered in the last 6 months since it's down by 50 percent, but

  • the demand for chips is still there.

  • The company has already beat analyst expectations for sales and earnings, but the massive sell-off

  • is still pushing the price down.

  • However, as they solve their supply chains, revenues are going to soar since the demand

  • for chips isn't just high, but it's soaring.

  • 5.

  • Moderna Long term

  • Not a single company received as much attention as Moderna to the point where it became a

  • household name.

  • But as the world moved on from covid, so did investors from Moderna.

  • It's down by 70 percent since its peak.

  • The stock doesn't seem like it will recover

  • However, the truth is that Moderna is the first company to prove that mRNA tech works,

  • and that's a big deal since this technology makes it much faster and cheaper to create

  • and test new drugs.

  • People might have started paying less attention to the pandemic, but that doesn't mean we

  • are not going to face new viruses and diseases.

  • Moderna sold $5.9 billion, tripling its vaccine sale in the first quarter of 2022, blowing

  • out revenue and profit expectations.

  • The world is going through some fundamental changes.

  • The geopolitical changes are affecting everyone.

  • From 1990 to 2020, we had a world order that everyone wanted to keep since everyone saw

  • an interest in keeping it

  • However, that began to change when the US failed to handle the most recent pandemic,

  • and the war in Ukraine is challenging the United States' global dominance

  • It disrupts supply chains, creates massive inflation, and makes the future uncertain.

  • The next 2 years will either enforce the Current world order led by the United States or reshape

  • it

  • So it's normal that a lot of companies are going to go throw some dark and difficult

  • times.

  • A global recession in such a period is inevitable

  • These will most likely be going to suffer further, but if they survive the storm, they

  • will most definitely grow much bigger.

  • Thanks for watching, and I will see you at the next one.

Investors threw more money into the stock market in the first 5 months of 2021 than

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