Behind the video
5 Stocks I Think Could 10x From Here
Overall Thesis
The host favors businesses combining sustained revenue growth, improving profitability and attractive valuations as candidates for substantial long-term investment returns. He highlights SoFi, Uber, Lyft, Hims & Hers, Toast and TransMedics, with explicit buy recommendations and a tenfold return possibility for SoFi.
Narratives
UBERUber TechnologiesThe host calls Uber a good buy because its demand aggregation, scale and profitability create a durable position in transportation and delivery. He views autonomy as a growth tailwind rather than a threat.
Key Arguments
- The app aggregates customer demand across rides and food delivery.
- Its large user base and trip volume would be difficult to disrupt.
- Pricing power has supported improving operating profit and free cash flow.
- Approximately 19 times earnings and 12 times forward free cash flow look compelling.
- Autonomous transportation could substantially expand the business.
Risks acknowledged
- Uber is already a very large business.
- Lyft offers a cheaper valuation.
- Gross bookings substantially exceed revenue because partners receive much of the spending.
Predictions (1)
The host views Hims & Hers, his largest holding, as an emerging consumer healthcare platform with substantial investor upside if it compounds growth over a decade. Subscriber expansion, additional treatments and international acquisitions underpin the opportunity.
Key Arguments
- The platform aggregates healthcare demand and reaches consumers directly.
- Additional treatments and branded GLP-1 products could increase revenue per subscriber.
- Acquisitions expand international reach and the subscriber base.
- The host sees approximately 3.5 times sales as compelling relative to growth.
- He believes the company can prioritize growth now and demonstrate stronger profitability later.
Risks acknowledged
- Growth has decelerated and was nearly flat in the latest quarter discussed.
- GLP-1 business fluctuations create uneven growth.
- Recent investment has reduced profitability.
- The investment outcome depends on sustained growth.
Predictions (1)
The host sees TransMedics as an attractively valued, profitable growth company and endorses buying and holding businesses like it to compound over time. It remains on his watchlist while he prepares further research.
Key Arguments
- The business makes organ transplants viable for more patients.
- Historical revenue growth has been strong.
- New devices could expand the addressable market.
- The host considers its valuation attractive following a large drawdown.
- He compares its development stage with Intuitive Surgical years earlier.
Risks acknowledged
- The stock is volatile and substantially below its all-time high.
- Growth and operating leverage have softened recently.
- Slowing growth may explain the falling share price.
- The host does not own shares and plans additional coverage.
Predictions (1)
SOFISoFi TechnologiesThe host sees SoFi as a digital banking growth engine with attractive valuation and potential to deliver a tenfold stock return over ten years. Fee-based financial services, member growth and a branchless cost structure support his thesis.
Key Arguments
- Financial services revenue and contribution profit have grown rapidly.
- Members and products continue growing above 30% over the recent period discussed.
- A digital operating model supports scalability and higher margins.
- Approximately 25 times forward earnings and twice book value appear attractive given growth.
- The host praises Anthony Noto's execution and insider purchases.
Risks acknowledged
- The stock is volatile and has fallen substantially from its high.
- The technology platform has not been a major growth driver.
- SoFi trades at a premium to most banks.
- Personal lending includes loans larger banks do not want to make.
Predictions (1)
LYFTLyftThe host recommends Lyft as a value-oriented complement to Uber. He expects its low valuation, cash generation and potential multiple expansion to benefit investors.
Key Arguments
- Forward earnings and free cash flow multiples are approximately seven and five, respectively.
- The company is still growing in the mid-teens.
- Buybacks and acquisitions support the investment case.
- The host identifies potential multiple expansion as an investment tailwind.
- A combined Uber and Lyft holding provides exposure to the industry leader and the cheaper competitor.
Risks acknowledged
- Lyft is smaller and less diversified than Uber.
- Its business is primarily focused on rides.
Predictions (1)
The host recommends buying and holding Toast for the long term as it becomes a central operating platform for restaurants. Subscription growth, operating leverage and familiarity among restaurant workers support its competitive position.
Key Arguments
- Revenue has continued compounding despite restaurant industry weakness.
- Operating profitability has improved materially.
- Payroll, scheduling, inventory and payments make the platform central to restaurant operations.
- Higher-margin subscription revenue could improve the business mix.
- Worker familiarity creates a network effect, and adjacent industries offer expansion opportunities.
Risks acknowledged
- The restaurant industry has struggled.
- The stock has experienced a substantial drawdown.
- Operating profit cannot expand too rapidly.
- The host does not yet own Toast in the portfolio.
Predictions (1)
Hedges & Caveats
- Tenfold upside is presented as potential, not a guaranteed return.
- SoFi and TransMedics are volatile stocks.
- Hims & Hers has experienced slowing growth and reduced profitability while investing in expansion.
- Toast faces a difficult restaurant industry environment.
- The host does not yet own Toast or TransMedics in the Asymmetric Portfolio.
- TransMedics growth and operating leverage have recently softened.