Tech Investor Paul Meeks Record Market
Paul Meeks

Paul Meeks

Paul Meeks Predicts Record Year Plus Concerns on DoorDash and Airbnb

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Yesterday (December 22), I appeared on CNBC’s “Trading Nation” with anchor Seema Mody. I recommended Micron (MU, $70.44) even though that was my pick when I was on the show a month or so before. Since then, the stock has popped from $45 to $70. I think that with the major memory chip vendors disciplined with their production, and with the voracious storage demand coming from 5G wireless, that this company can earn $12 per share again over the next few years in the next industry upcycle. To put this in perspective, MU earned $3 per share last year.

I also recommended shorting DoorDash (DASH, $156.79). I don’t think that this recent scorching IPO can hold its value. A money-losing food delivery company with no true competitive advantage shouldn’t trade for 20 times sales when the shares of the best, highly profitable software companies trade for 10 times. Also, particularly as deliveries slow after COVID, I bet that DASH won’t be able to continue to steal 20% per delivery from restaurants. Watch out below! We’ll see if I’m right.

Last, I made/make the call that tech will outperform yet again in 2021 after the “revenge if the nerds” rotation into value/cyclical stocks peters out before next summer. Growth/tech stocks do relatively well in a low-interest rate, low growth, low inflation environment & that’s what I see. The only piece of this puzzle in which I may be wrong is the subdued inflation. Again, let’s check in a year from now.

Note that I own MU, as do my clients at Independent Solutions Wealth Management as well as our Wireless Fund (WIREX) shareholders. We’ve no DASH positions.

If your looking for more stock talk from tech investor Paul Meeks, be sure to read his other blogs; Tech Investor Paul Meeks Explains How This Stock Could Decelerate Its Earnings Due to COVID and Salesforce.com and Slack Is A Bad Deal, Paul Meeks Explains.

Investment Advisory Services offered through Independent Solutions Wealth Management, LLC, an SEC Registered Investment Adviser.
All opinions expressed Paul Meeks are solely Meeks’ opinions and do not reflect the opinions of Independent Solutions Wealth Management, LLC (“ISWM”). You should not treat any opinion expressed by Meeks as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. Meeks opinions are based upon information he considers reliable, but neither ISWM nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Meeks, ISWM, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Meeks statements and opinions are subject to change without notice. No part of Meeks compensation from ISWM is related to the specific opinions he expresses. Past performance is not indicative of future results. Neither Meeks nor ISWM guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from an investment adviser.

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