What's up guys and welcome back to wall street millennial on this channel, we cover everything related to stocks and investing it's no secret. That 2022 has started off as a terrible year for the stock market, especially high growth technology stocks. The tech heavy qqq index has lost one quarter of its value, marking the worst drawdown since the pandemic hit in march of 2020 and pretty much no stock is safe, even amazon, which had previously been considered a bulletproof nasdaq stalwarts has declined by 40, giving back all Of its pandemic gains, that's a pretty insane. Development amazon was one of the biggest beneficiaries of the pandemic, with the surge of e-commerce, yet even they cannot hold on to their games.

Market crashes, like the one we are currently facing, are very scary and it's impossible to tell when we've hit the bottom, but as warren buffett says be greedy. When others are fearful with so much proverbial blood on the streets, we could be witnessing a generational buying opportunity for high growth companies, but have been thrown out with the bath water and indiscriminate selling. I recently opened a new account with the commission free stock brokerage. Moomoo moomoo is a commission free trading app which has the most comprehensive set of fundamental and technical, investing tools of any brokerage.

I've tried they're, currently running a promotion where you can get one free stock when you deposit one hundred dollars in an additional three free stocks, when you deposit, two thousand dollars or more just click, the link in the description below i deposited two thousand dollars into my Account which i'll use to buy the dip on five stocks throughout the year i'll update you all about the performance of the portfolio on the youtube community tab, and we will also keep track on our website wallstreetmillennial.com. This video is not financial advice by any means. I just want to share with you my own investing rationale and how i think about investing today. This doesn't mean that you should necessarily own the same stocks.

Every individual has their own time horizon risk, tolerance and opinions. You should do your own research and talk with the professional to see what portfolio is right for you when trying to find undervalued stocks. The most obvious place to look is the stocks that are down the most from their highs in the current market crash. These would be the disruptive innovation stocks, such as the ones owned by kathy woods, arc invest.

However, most of these companies are cash burning machines, they're, probably years away from making net profits. Burning cash in pursuit of hyper growth was a fine strategy when the fed was pumping the economy with free money, but now that the fed is raising interest rates, these stocks are getting crushed like souffles under such hammers take teledoc. The stock is down 90 from its all-time highs, but the company is losing money, so it doesn't even have a price to earnings ratio when a company doesn't make any money. It's very difficult to say that it's undervalued, no matter how low the share price falls in an inflationary and rising rate environment.

You generally want to own companies that are generating cash today. That means that they can fund their operations and growth activities without needing to borrow money, as borrowing costs are rising. Fortunately, with the sell-off, there are many profitable, highly cash generative technology companies, which have also seen their share prices destroyed when analyzing stocks. I like to keep things simple: the simplest and most important metric to look at is the price earnings ratio or pe.

This is nothing more than the price of the stock divided by the earnings per share. This basically tells you how much earnings you are getting for. Each share that you buy for a low quality company such as a brick and mortar retailer. The pe will be low because the earnings are expected to decline over time for a company like tesla.

The price earnings ratio will be very high because investors expect the earnings to increase over time. The holy grail for value investors is defined as stock with a low p e ratio, but is also growing its earnings, or at least the earnings won't decline. Fortunately, with the recent market crash, there are more and more companies that fit this description, and that brings us to my first pick for 2022, which is meta platforms, formerly known as facebook. We can use the moomoo app to analyze the pe ratio of stocks on the login page.

We click the search bar at the top right and type in fb, which is meta's ticker symbol. We then swipe over to the analysis, tab, scroll down and look at the company evaluation section, which shows you not only the pe ratio today, but also how has evolved over time. Currently, facebook has a pe of 15, which is already slightly lower than the s p. 500 pe of 20..

Interestingly, you can see that back in 2020, facebook's pe was in the 30 range. The p e ratio has fallen from 30 to 15, which basically means that the market thinks that facebook's growth opportunities are 50 worse than they were two years ago. If you want to buy or sell shares of meta you just swipe over to the quote: tab where you can see the stock price chart and tick by tick values. What's really cool about moomoo is when you go to place your order, you can see the entire order book and see what's the best bid and ask price for the stock rate this.

Second, this is called level 2 market data and it's really important to get the best execution on your limit. Orders. Moomoo gives this to you for free, while many other brokerages make you pay for it. The question is: is this massive decline valuation reasonable or is the market overreacting? Besides the general change in market sentiment, there are two main reasons that the share price has been cut in half.

The first concern is that the company is facing increasing competition from tick tock. The short form, video app, which has seen its popularity explode in recent years. I view this fear, as overblown people use facebook and instagram to see what their friends are up to and organize various online and in-person events on tick-tock. You watch random influencers, who you don't know personally dancing or doing various comedic stunts.

If anything, this is more of a competitor to youtube than facebook. Their active users continue to grow, and today 3 billion people around the world use at least one of their four apps facebook, instagram messenger or whatsapp on a monthly basis. The second major problem is apple's recent privacy update, which will make it harder for facebook to target ads. Despite this headwind, they are still able to grow their revenue by six percent in the first quarter of this year.

If there's one thing that zuckerberg is good at it's mining, your personal data, whatever privacy systems apple, tries to put in place, i believe you will find a way around them and continue creating value for shareholders at just 15 times earnings. I believe that facebook represents a rare opportunity to invest in a highly profitable and growing tech company at a more than reasonable price. The second stock that i'm buying on the dip is the ai lending platform upstart, which is revolutionizing the loan approval process. Today, most banks rely on your fico credit score to decide whether to approve or reject your loan applications.

The problem is even if you've never defaulted on a loan. Your credit score may still be low simply because you don't have enough credit history, founded by former google executives, upstart uses a machine learning process with over 600 inputs to predict the probability of a default with much greater accuracy than a traditional fico score. Upstart partners, with both banks and car dealerships, to use their ai platform to approve mortgages and automobile loans. Upstart's ai prediction model approves almost triple the number of applicants compared to legacy systems and would have 75 less defaults at the same approval rate.

This is a win-win for both the banks and the borrowers. This past tuesday, the stock price was more than cut in half after releasing a disappointing earnings report, it is one of the worst performing stocks in the entire market, having lost more than 90 percent of its value since its all-time highs. Just a few months ago there are two possible scenarios: either their business is rapidly deteriorating or mr market is giving us a massive opportunity to buy this stock. At a 90 discount, we can analyze upstart's financial performance with the moomoo app.

We open the app and type in the ticker symbol upst in the search bar once we get to upstart we scroll over to the financials tab on the top. This page shows us data from upstarts financial statements. The first thing to look at is the company's revenue growth. Since 2017, upside's revenue has grown every single year in 2021, their growth exploded with revenue almost quadrupling to 846 million dollars.

Of course, revenue growth is only useful to the extent that it can be translated to profitability. If we click the net income tab, we can see that they are basically break even over the past few years, but in 2021 their net profit skyrocketed to 135 million dollars. Mumu also keeps track of analysts estimates over the past four quarters. Upsar has exceeded revenue.

Estimates they've also consistently exceeded earnings per share estimates. So far everything looks pretty good now to understand. What's going on with the stock price, we can go over to the analysis, tab in the company evaluation section. We can see how upstarts p e ratio has been crushed at the peak two years ago.

Their pe reached a peak of almost two thousand. This indicates that investors were very bullish on the company's future prospects. Today, the pe is 20 down. 99 percent from the peak moomoo calculates that the current pe is in the zeroth percentile.

Historically, that means that upstart stock is cheaper today than it's ever been in the past. We can also look at a short interest. The grade line is the stock price, and the blue line is a short interest. As the stock price has declined, hedge funds have been shorting the stock hand over fist.

Currently, 24 of the shares have been sold short, which potentially makes the stock vulnerable to a short squeeze. So why are investors so bearish on the company? Despite the skyrocketing revenue and profitability, they gave 2022 revenue guidance of 1.25 billion dollars, which represents 47 growth over the prior year, while 47 is an insane growth number in its own right. It's a deceleration from the 264 percent of 2021 in 2021 upstart was held by unprecedented low interest rates set by the federal reserve to combat the pandemic mortgage origination, skyrocketed as homeowners wanted to lock in the low rates. Now that the fed is raising rates.

Mortgage demand is declining to more normal levels. Despite the interest rate, headwinds upstart is continuing to sign on new partners at a rate of one per week. Today, 57 banks and 525 automobile dealerships use upstart to approve loans. This is a tiny fraction of the almost 5 000 banks and 140 000 automobile dealerships in the us, given the massive addressable market and proven track record, i think that the 90 decline in upstart's share price represents a generational buying opportunity.

The next stock that i'm buying is warner brothers, discovery or wbd. Wbd was formed about one month ago by a merger between warner, media and discovery. Warner media owns the streaming service hbo max, while discovery owns discovery plus wbd will combine the two services to create one dominant streaming service to compete with the likes of netflix and disney plus. The combined streaming platform will have 100 million paying subscribers making it.

The fourth largest video streaming service outside of china, amazon, prime video, is not really comparable because many people subscribe primarily for prime delivery. If you look at the pure play streaming, services only netflix and disney plus will be bigger than wbd. My belief is that the streaming landscape will consolidate around netflix, disney plus and the new hbo max. The smaller players like peacock and paramount plus lack the necessary scale to be competitive and will slowly wither out and die.

Hbo has a huge library of high quality programming, including the dc superhero universe and game of thrones. Discovery owns a massive library of unscripted shows, including their namesake discovery, channel animal planet and tlc. The combined platform will have 200 000 hours of programming, which is more than any other streaming service. In the first quarter of this year, hbo gained 3 million subscribers and disney plus gained 2 million for a total of 5 million new subs in the same period.

Netflix lost 200 000 subscribers hbo and discovery are already gaining share against netflix, and i believe that these games will only accelerate when they combine the two platforms at t acquired warner media back in 2018. during their ownership. They badly mismanaged the company, because the att executives had no idea how to run a media company, for example, they wasted 300 million dollars to build cnn plus, which is a complete flop, getting just 10 000 viewers by the end of the first month. Long-Time discovery ceo, david zasloff, was named chief executive of wbd when the merger closed this past april.

The first action he took was to shut down the failing cnn plus in total. He thinks that he can cut three billion dollars of annual cost by rationalizing redundant headcounts and otherwise cutting excesses that have built up over the years under att's ownership. The company is already highly profitable and the stock is very cheap. Based on my estimates, they can make three dollars and fifty cents of earnings per share once the cost cuts have been implemented, which would give them a p e ratio of about five.

Those are my three top picks for taking advantage of the current market crash. There are two other socks: i've also added to my portfolio, graphite, electrode, manufacturer, graphtec and clothing retailer tillies. Here you can see my moomoo portfolio with my cost basis for each stock. I've transferred two thousand dollars into the account, and it takes a couple of days for the money to arrive.

Numeu gives one thousand dollars of instant deposits, which are available immediately once the remaining one thousand dollars arrives. I'll add to the positions in proportion i'll be holding these five positions in my moomoo account and will update you all in the youtube community tab about the performance of these positions over the coming months. So we can see how well they do. If you want to see analysis on these stocks, you can see them for free on our website.

Wallstreetmillennial.Com simply click on the portfolio tab from the home page of the website. Remember to open your moomoo account and get one free stock when you deposit one hundred dollars an additional three free stocks, when you deposit, two thousand dollars or more just click, the link in the description below alright guys that wraps it up for this video. What do you think about these stock picks? Which other stocks are you buying in the current correction? Let us know in the comments section below as always. Thank you so much for watching and we'll see you in the next one wall, street millennial, signing out.