The Compound and Friends

Uber Remains a Bargain Despite Recent Run-Up

"It might seem odd to characterize Uber, whose shares have surged more than 35% this year, as underappreciated. Trading at 16 times 2026 estimated earnings before interest, taxes, depreciation, and amortization, it remains a bargain with forecasts of EBITDA growing 34% this year and another 26% in 2026."

The speaker provides a company-specific assessment of Uber, emphasizing its attractive valuation at 16x forward EBITDA and robust growth estimates, marking it as an undervalued opportunity despite its recent share price gains.

Cautious Bullish Play on Netflix with a Buy Stop Limit Order

-3.32%current return

"So, I'm bullish on Netflix, but not yet, I guess. One strategy, if you own it in a non-taxable account, is to put a buy stop limit at 101 good till canceled and just leave the cash aside until the stock breaks out of its 90s range."

The speaker outlines a tactical approach towards Netflix, expressing bullish sentiment while waiting for a breakout from its current range, and suggesting the use of a buy stop limit order at 101 to automatically re-enter the stock.

Trade Call: Bullish on Netflix Amidst M&A Uncertainty

-1.89%final return

"if you are of the mind that Netflix loses, the stock is probably a screaming buy because there's probably a lot of arbitrage pressure on it or maybe just negative sentiment surrounding the debt dynamics that you were describing. So a take I I've recently sold Netflix. I bought >> Michael recently bought. I guess if that deal were to fall through because Paramount does do what you suggest and go to $34 a share and Netflix says, 'You know what? Not worth it. Pay the breakup fee, figure out a licensing deal where we can walk away with a trophy.' If that happens, Netflix could add 50 points a share. You look at you look at the the uh draw down it's in. So for me, that's like the really the big takeaway here and might be the right risk to take."

Bill Cohen outlines a trade idea focused on Netflix, suggesting that if the current M&A scenario falters—specifically if Paramount raises its bid—Netflix's stock has the potential to rebound significantly, potentially adding 50 points. He emphasizes the arbitrage opportunity and negative sentiment around the current debt situation as catalysts for a bullish trade call on Netflix.

Nvidia's Earnings Rally Sets Up End-of-Year Move

"Uh Nvidia reported last night one of the best earnings quarters I have ever seen any publicly traded company report. I think the setup was really interesting. The amount of doubt going into it. Not doubt about Nvidia, but doubt about the theme and whether or not it's gone too far. Nvidia went into the report in one of the biggest drawdowns it's ever been in, and then Jensen came out and did what he's been doing for the last 12 quarters straight: surprising to the upside, raising guidance, and calming nerves. This morning, you got a 9 or 10 point bump for the stock, and it feels like it sets up for a nice move for the end of the year."

The guest highlights Nvidia's stellar earnings performance and the subsequent positive market reaction. Jensen's consistent ability to raise guidance and calm investor nerves has contributed to a significant bounce in Nvidia's stock, suggesting that the sentiment correction could pave the way for a robust end-of-year move. The commentary underscores Nvidia's pivotal role in the AI-driven market and its potential to lead broader market trends.

Palantir Earnings Reaction Falls Short

"Can you say more about Palunteer presenting itself? So, Palunteer puts up an earnings report that uh had they done so over this past summer, for example, or last spring, would have been greeted with probably an instant 20% rally that then sticks. This time, they put out another blowout number, have a great conference call, CEO tells everybody to go to hell, who wants to short his stock, etc., etc., and the stock doesn't work. That is that is that what you mean by that?"

The speaker criticizes the market's reaction to Palantir's (referred as Palunteer) recent earnings report. Despite delivering a blowout performance and an aggressive conference call, the stock failed to rally as expected, highlighting a disconnect between strong fundamentals and price action.

Meta Capex Acceleration and Free Cash Flow Concerns

"So here here's the quote. Yeah. So they said so every analyst on every call is asking the exact same question right like the spend the revenue where is it going to show up and they said it has become clear that this is Meta that our compute needs have continued to expand meaningfully including versus our expectations last quarter. We are still working through our capacity plans, but we expect to invest aggressively to meet these needs both by building our own infrastructure and contracting with thirdparty cloud providers. We anticipate this will provide further upward pressure on our capex um capex dollar growth will be notably larger in 26 and 25."

The excerpt highlights Meta's aggressive investment plans to address expanding compute needs amid the AI boom. It underscores that despite strong revenue growth, Meta faces rising expenses and slowing free cash flow due to anticipated aggressive capex spending in 2025 and 2026.

Trade Call: Calamos CA ETF for Income Investors

-0.40%current return

"We've talked about several of their ETFs on our podcast, but they just did something incredible with their new auto callable income ETF, ticker CA. This thing seeks high taxefficient monthly income, 14.47% last month, a majority of which is estimated to be treated as return of capital. Game-changing income and tax treatment. Auto callables are a 100 billion dollar market that banks have been selling to wealthy clients for years. Calamos just hit the easy button for everyone and democratized the whole thing in an ETF rapper. CIE just passed $300 million in assets and is climbing fast. While everyone's chasing yield with covered calls, Calamos opened up an entirely different playbook. Check out CIE@calamos.com. Your income hungry clients will thank you."

The speaker highlights Calamos' new auto callable income ETF (ticker CA) that targets high, tax-efficient monthly income with a unique return of capital structure. Described as 'game-changing', the product is positioned to democratize access to a $100 billion auto callable market, offering income investors a compelling alternative to traditional yield strategies.

Bullish Commentary on Blackstone7s Private Credit Performance

"One of the biggest alternative managers had published their report. Blackstone, did you see the results? >> I did. Phenomenal. I'm a shareholder. So, Blackstone's private credit business alone was up 13 uh almost 13% over the last 12 months. So, doing well despite all the cockroach fears."

The speaker highlights Blackstone7s impressive private credit performance, noting that its business was up almost 13% over the past year. He expresses confidence by stating he is a shareholder and emphasizes that the positive results come despite widespread market concerns referred to as 'cockroach fears'.

Pair Trade Opportunity: Long Robinhood (HOOD) & Short Schwab (SCHW)

+10.23%current return

"That could have been one of the greatest pure alpha pair trades I've ever seen. If you had put this trade on in '23, I want to be long Robin Hood, short Schwab. Holy cow, if this touches one, go the other way."

The speaker outlines an actionable pair trade based on the converging market caps of Robinhood and Charles Schwab. He notes that Schwab's market cap has compressed from as high as 22.5 times the size of Robinhood's to just 1.3 times, suggesting a potential reversion. The recommendation is to establish a long position in Robinhood (ticker HOOD) and a short position in Schwab (ticker SCHW) as the ratio normalizes further.