"Do you want a data leak at your business? No. Do you want it to be in one of your geopolitical rivals to create a whole political scandal? No. Do you want to get fined $500 million? No. But at the end of the day, Kong's mode, I think, is still very, very wide. They trade at 3.8 times trailing gross profit when gross profits are growing at close to 20 to 25% year-over-year, and they're showing pretty good signs of operating leverage. I nibbled a bit on the stock this week. Maybe even a bit more than a nibble. Maybe a full bite of adding to the position."
Brett outlines the significant risks posed by a recent data breach and potential regulatory fines, but he believes the company's wide moat, attractive valuation multiples, and strong operating leverage present a compelling buying opportunity in the near-term.
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Chit Chat Stocks Podcast
December 18, 2025
Stock Idea