5 Stock Updates!!!

Summary

In this stock market update, the speaker provides insights into various stocks in their portfolio, including Gambling.com, L SAAC, Adobe, S3, and AMD. They discuss their strategies and decisions, including selling L SAAC due to concerns about inflation and interest rates, while highlighting Gambling.com’s recent success following a key acquisition. Adobe's high valuation and cyclical stock behavior are analyzed, alongside S3's recent drop due to a slow-down in the recruitment industry. Lastly, AMD is highlighted as a potential rebound stock with strong earnings growth and a favorable valuation for future growth.

Takeaways

• 😀 The stock market has been quiet recently, similar to last week, with some brief trading updates appearing toward the end of the week as the holiday season approaches.
• 😀 Gambling.com (GAMB) has performed well, rising from $10 to $15 since the speaker bought it, but the speaker is uncertain whether to hold for long-term growth or take short-term profits.
• 😀 LSAC (L.S. Acquisitions) stock has fallen sharply after the speaker sold it for a 25% return. The company’s earnings and future guidance were disappointing, leading to a significant drop in its stock price.
• 😀 Adobe (ADBE) stock has dropped after earnings, as it consistently does following reports. The speaker is cautious about its high valuation and would only consider buying if the stock drops to $360 or lower.
• 😀 S3, a UK-based recruitment company, saw a 26% drop in stock price, partly due to slower recruitment activity in the UK and France, influenced by economic uncertainty.
• 😀 Despite its drop, S3 has a clean balance sheet with no debt and strong cash reserves, but the recruitment sector is vulnerable during economic slowdowns, making the stock a risky play.
• 😀 AMD (Advanced Micro Devices) is showing growth after a tough period, with earnings and revenue forecasts improving. The stock’s forward P/E of 26 suggests good value given its growth prospects.
• 😀 AMD's revenue growth is expected to continue at 22-26% in the next year, making it an appealing stock for those looking for a rebound, despite its recent struggles against Nvidia.
• 😀 The speaker has been actively managing their portfolio, adjusting positions based on market conditions. They sold some DraftKings stock to buy more Gambling.com to maintain a balanced risk profile.
• 😀 The overall theme of the video is navigating a quiet market with cautious optimism, balancing between taking profits on stocks that have risen and finding new opportunities in undervalued or rebounding stocks.

Q & A

What recent trend has the stock market been following according to the transcript?

The stock market has been relatively quiet for the past couple of weeks. The speaker mentions a slow period until the Christmas period, where activity tends to slow down further.

What prompted the speaker to invest in Gambling.com?

The speaker started investing in Gambling.com due to its promising outlook, especially after the company made a good acquisition of Odds Jam, a fast-growing tech platform for real-time odds data.

How has Gambling.com's stock performed since the speaker’s investment?

Gambling.com’s stock has risen from around $10 to $15 since the speaker invested, leading to a significant profit.

What concern does the speaker have about holding onto Gambling.com shares?

The speaker is uncertain whether to continue holding the stock or take short-term profits, as it has been a great performer but is unsure about the long-term outlook.

Why did the speaker decide to sell their position in LSAC?

The speaker sold their position in LSAC due to concerns over rising interest rates and inflation. They believed that higher rates would make consumers less likely to afford items like sofas or homes, which would negatively impact LSAC’s sales.

What was the financial performance of LSAC that led to the drop in its stock price?

LSAC reported weak financials, with a 1.3% increase in revenue and a negative EPS. Moreover, the company’s 2025 guidance was much lower than expected, which led to the stock price dropping.

Why does Adobe’s stock drop consistently after earnings reports?

Adobe’s stock consistently drops after earnings reports because its growth, while positive, is seen as insufficient for its high valuation. Investors react to the numbers and realize that the stock may not justify its price, causing it to decline.

What price would the speaker consider buying Adobe at, and why?

The speaker would consider buying Adobe if the stock price drops to around $360, as the company’s growth rate does not justify its current high valuation of around 40 times earnings.

What caused S3's stock to drop by 26%, and what is the outlook for the company?

S3’s stock dropped due to weak demand in the recruitment sector, especially in the UK and France. The company’s outlook for 2025 was downgraded, with a significant drop in projected profits. Although S3 has a clean balance sheet and is using the drop to repurchase shares, its prospects are uncertain due to the broader economic slowdown in recruitment.

What does the speaker think about AMD’s potential for a rebound?

The speaker is optimistic about AMD’s potential for a rebound. Despite recent challenges and a 6% year-to-date decline, the company is showing strong growth in certain areas, particularly in data centers. AMD is expected to continue growing with a projected 22% revenue growth, making it a potentially attractive stock at its current valuation.