Top 5 MOST OVERHYPED STOCKS 2018
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Top five most overhyped stocks, and then tie your stock market. That’s what we’re gonna do today. Guys, this is gonna be a really fun video, I’m going to share with you this five stocks that I think are massively overhyped.
But let me be clear about something for a second here, just because I feel like these stocks are massively overhyped, it doesn’t mean I’m going to go out shorting these stocks, or I believe these companies are going to fail or anything like that. All right.
Some of these companies have brilliant visions, they’re executing very well. But these companies, in my opinion, are just just the hype around them. It’s just like insane everybody’s annoying them champion of everything before they’ve they’ve proven their champion of everythAing. All right.
So I hope you guys really enjoy this day hope you get a lot of value out of it. Once again, I’m not shorting any stocks. One of these stocks is actually I’m part of the problem. I hype it Oh, actually two of these stocks.
I hype a lot. So I’m part of the problem. I’m not just like, you know, an innocent saying here, like, I’m part of the hype problem. All right. So let’s get into this guys. We’ve got all the first letters of all the companies if anybody can guess it’s like, what do they call Wheel of Fortune or whatnot.
If you can guess all five of these companies, you are a true champion of life. Number five is a company named g board, g board. So cheapo lay, this used to be one of Wall Street’s darlings, okay, this used to be you know, one of those stocks that can do no wrong.
And up until you know, a few years ago, it was one of those stocks, but then also the E. coli situation happened. We had you know, tons of other situations happen with Chipotle it, it took away all the same store sales growth, you saw they were used to grow.
You know, 678 plus percent, same store sales, growth, all that got taken away, okay. Earlier this year, a new CEO is appointed as CEO of the company, and he comes over from Taco Bell, and everybody’s got this, this all this hype around the CEO.
When I look at this, I look at it from the perspective of this guy comes over from Taco Bell, which is Taco Bell. When you think about Taco Bell, what is Taco Bell strategy, we’re going to use as cheap of ingredients as possible.
We’re going to mark it as heavy as possible to try to seem like a cool brand, we’re going to try to sell for as low of prices as possible, so everybody can afford it. Okay, that’s Taco Bell strategy.
And when you think about what Chipotle a brand really represents, it represents, you know, higher level ingredients, much higher level ingredients than say someone like a taco bell, which is why Chipotle, they stole a lot of market share away from Taco Bell, and other competitors.
They think about we’re going to sell for higher prices, okay. And, and ingredient costs, you know, if we have to pay up for some of these ingredients, we have to pay up. So chipola is now in a situation where this stock is getting heavily hyped.
Like they’re going to be, you know, grow to infinity now, at this point in time. And when I look at Chipotle, I say, there’s a lot of questions here about this company still, can they even get same store sales to be a consistent grower, again, up to let’s say, just two or three or maybe 4%.
Maybe not the 678 plus percent that they used to do? Can they just get it back to like a two or 3% growth consistently? Is that even possible for this company? Okay. So just just to, you know, appoint them champion because this new CEO comes in from Taco Bell.
I think that’s, I think that’s, you know, overhyping one on one. So that’s comes in at number five? Coming in at number four is not just one specific stocks. It’s actually an entire industry right now.
And it is the Weed Stocks. All right, the Weed Stocks. So, you know, we know weed is starting to get legalized in a lot of places. Okay, we know this is an exciting industry. However, the valuation you have to pay for the majority of companies that are public companies, is ridiculous.
A lot of times, it’s hard to even see who’s going to be the winners and losers in the space right now. Because it is so early days, but what you have right now, you have a lot of these Weed Stocks, right?
A lot of these companies have multi billion dollar valuations on them. In some of these companies guys don’t even have $100 million in revenue, and are taking massive losses on the bottom line, not even 100 million revenue, you got a five $6 billion valuation on your right.
And last year, you didn’t even do $100 million in revenue. Like that’s just crazy. Okay, a ton of these stocks basically had virtually no revenue last year, maybe a few million dollars, which is like virtually none.
And they have 1,000,000,002 billion $3 billion dollar valuations on it’s unreal, okay, once again, it’s so early days in the in the weed industry that it’s hard to see, you know, who’s going to be the true winners in the space? Who’s going to be the Budweiser of weed? Okay.
Who’s going to be the the constellation brands of the weed industry and whatnot, is a really hard sector to see and envision out, okay, this one’s gonna be the winner. This one’s going to be the winner and the valuations you have to pay is astronomical. Okay.
But literally, I was looking at a company that they had a $6 billion valuation on it. And the company did $77 million in revenue last year, and they lost like, I think $70 million in some insane amount. like think about that, like what.
You got to pay $6 billion valuation for a company that brought in 77 million in revenue and loss a bunch of money on the bottom line, like that’s overhyping one on one. So is there a lot of exciting things going on in the weed space and could some of these stocks be here.
It couldn’t be but at the same time when you got to pay that type of valuation, it’s just ridiculous guys that’s just overhyping, one on one it’s in a lot of people are comparing it now to Bitcoin at this point in time where everybody’s just trying to funnel in these stocks hoping it’s like a lottery ticket, you know.
Hoping that you know that that company that they pay billion dollar valuation that basically has no earnings right now somehow grows to be a 1020 3040 $50 billion company. It’s like a lottery ticket play. Okay, that’s overhyping, 101 Weed Stocks.
This next one that is overhyped, oh, my goodness is Netflix. All right, Netflix, a phenomenal service. Kay, phenomenal service been a phenomenal grower for a long time. But everybody’s appointing them champion of not only streaming, but just like like content in general going forward.
And we got to slow our roll for a second here. Okay, Netflix deserves a lot of credit for being the first real major player in streaming they got out in front of everybody was taking this stuff serious before everybody.
And they always deserve a premium over everybody for doing that, because they got that brand reputation now for that, okay, so he deserve a lot of credit. But at the same time, this company is treated like like, everybody’s just gonna watch Netflix.
And no one’s gonna watch anything else in the future. And I say there’s going to be a massive amount of serious competition coming in over the next few years. Up until now, Netflix has had virtually no real competition or very little real competition over the next one to two years.
Everybody’s coming in the streaming space. Everybody wants a piece of this pie. I don’t care if we’re talking tech companies, you know, the apples and the Facebook’s and the Googles, and those type of companies or I don’t care if we’re talking about Disney, and some of the old players are coming into streaming.
You know, HBO is obviously big in streaming now. Everybody wants a piece of Netflix pie. Everybody is coming in seriously over the next one to two years. So I would say just let’s slow our roll a bit on appointing Netflix the champion forever because I’m telling you guys.
The amount of competition coming in this space over the next one to two years is astronomical. And most times Wall Street bulls talk about this and most times Wall Street will say well look at all this competition coming in.
This company could get knocked off. But in Netflix situation, Netflix hasn’t had to deal with any of that. So far. Everybody’s just kind of like turning a blind eye to all this competition coming in over the next couple of years.
I’m here like, like, how is no one paying attention to everybody that’s coming in streaming, like Disney’s launching a massive streaming service next year. Like there’s so much competition coming in this space.
It’s unbelievable. But everybody just kind of like just gives Netflix a pass and then the hype just builds and builds and builds. Netflix is gonna everybody’s just gonna watch Netflix in the future.
I would say that’s pretty interesting. Okay. But they definitely always deserve a premium because it got in the space first. All right. Number two stock. I am part I’m definitely part of the problem on this one.
I’m just one piece of the problem. It’s a very, very, very overhyped stock. And that company is Tesla. Okay, Tesla, I love this company. I’ve been on this channel for over two years now, talking about how I believe Tesla will have a 50% market share of cars sold in the United States of America within 10 years.
Okay, that’s a, you know, ridiculous hype type of statement, right? No one’s had that type of market share, maybe ever in automobiles, or maybe we have to go back to the, you know, early 1900s, or something to get that type of market share.
I’m talking about them having a type of market share in cars that Apple has in smartphones right now, that type of market share in the United States of America. Okay, that’s huge hype I’m putting on this company.
But I’m not the only one. There’s a lot of people putting a lot of hype on this company. Okay, people, you know, there’s a lot of people saying they’re going to be able to move, you know, 2 million plus cars within three to five years. All right.
So this is a heavily hyped stock, everybody believes that this company has some huge things going for it. It also is a stock that gets a ton of hate, okay, it’s also a stock that gets a ton of hate.
People think that gold is gonna go bankrupt and whatnot. But a lot of other people say they’re going to be not only a disruptor in automobiles, not only not only transportation, but also in the energy sector, okay, they’re going to fundamentally change the energy industry in the way you know.
An average home gets their energy or average city gets their energy. So this is a really hyped stock right now. A lot of love a lot of hate for this one. Like I said, I’m part of the problem in terms of hyping I think they got such a big potential at the company.
It’s unbelievable and the brand is unbelievable there. But needless to say, they’re a long way from they’re all such a far long way from getting to where they’re at now to where you know.
I believe the company is going to be overtime, or even, you know, some of the other people that believe they’re going to be moving 2 million plus cars per year, within three to five years. There’s still a long, long way from that.
Remember, we’re just talking about them producing 5000 model threes a week to get to that 1000 producing millions of cars. That’s a long, long way. Okay, guys, so Tessa Alright, tuts I give them number two most overhyped company because it’s number one most overhyped company.
It’s almost unbelievable. But how much credit people give this company and they deserve a lot of credit? Don’t get me wrong, but the amount of credit I’ve never seen anything like in my time of investing or being in the stock market for decades, and this company is named amazing Zhan Okay. Good old Amazon.
Mr. Jeff Bezos, Amazon is the most overhyped stock I’ve ever seen in my time in the stock market. Okay, are they doing a million brilliant things? Yes. And I once again it’s no stock I’m probably part of the problem because I always talk about what Amazon is taking over the world.
They’re taking over everything and a lot of that’s true but the same time any industry Amazon even dip their toe into everybody’s appointing them champion right off the bat. And that’s like, Come on, guys.
Like we got to get serious here for a second. Anything that Amazon does, people are like, oh, that industry is done. Okay. They come into the food, you know, the grocery game, they buy whole foods, all the grocery companies are gonna go out of business now. everybody’s done Kroger, no one shopping there.
And I’m like, I don’t know not so fast about that. Okay. They buy pillpack all pharmacies are done, Walgreens is done. CVS is done. Everybody’s gonna be destroyed by Amazon. Okay.
They announced they’re going to do some type of delivery service. Oh, FedEx, UPS, all those huge, massive businesses. They’re all done anything that Amazon gets in literally immediately even if it’s just a little bit they’re like trying to chew off of that industry.
Literally overnight those the stocks in the competitor industries getting nailed, like like Amazon’s literally gonna win and everybody else is gonna go bankrupt. And I’m like, wow, that’s that’s overhyping to the biggest extent. Okay, just because Amazon has been a huge disrupter in retail, right.
And just because Amazon has been extremely successful Amazon Web Services, doesn’t mean Amazon’s gonna win everything okay? Oh, the whole world’s gonna be run by Amazon.
It doesn’t mean that Okay, guys, and there’s something we got to think about. Okay, Amazon’s in a massive expanding phase right now, they’re doing a lot that has to do with expanding the business in a lot of industries that aren’t really related to their two cores, which is online selling of items, okay.
And which is Amazon Web Services, they’re starting to do a lot of things that kind of break away from that maybe they’ll try to tie it in, but it’s not to their core businesses. And things like that do definitely work good when you’re in a good economy and everything’s expanding.
But I’m just gonna I’m just gonna put this warning out there when when when the next recession happens with the players that have these tons of different businesses going on everything you know, money going all over the place spending on everything.
Next time there happens to be a recession those type of businesses get hurt worse in everything because they’re already blowing money on so many different projects right? Then all sudden a recession happens tons of the revenue dries up you have to lower prices even lower to get customers you know to buy different things right.
And then also you’re stuck in a situation where you’re taking massive losses and you’re spending massive amounts of money and then all sudden you’re you’re like, Okay, we got to rein in some things here.
We got to start getting rid of some of these these other businesses we were trying and whatnot. So Amazon oh my gosh, like anything they do everybody disappoints them that they won that, oh, they come into this $20 billion industry out there one that industry they just it’s like.
Guys isn’t a company that’s very successful. They deserve respect, and they should be thought about as a competitive threat anytime they come into space. Yes, but to appoint them champion, or in some new industries, they’ve never even done anything.
And I think that’s pretty ignorant, guys. Okay, so I hope you really enjoyed this today. Let me know what you think about the stock guys probably a controversial video. Like I said, I’m not shorting any stocks.
And a lot of these companies have brilliant visions, and I think they’re going to do amazing things. But just because you have brilliant vision, and you probably are might do amazing things doesn’t mean you definitely deserve an insane multiple on your company, or you know, to be hyped, like like your champion before you’re ever champion.
You got to prove it first. Right, you got to prove it first. So let me know in that comment section, which one of these you guys think is the most overhyped if I didn’t mention one stock that you think is a massively overhyped company I would love to hear from you guys in that comment section.
And anyways, that’s all I got to say guys. Have a great day.