Philip
Founder & CEO of Intrinsiqq, Value & Growth Investor
Quality and price favor these eight stocks. Amazon improves as its multiple falls; Uber generates serious cash flow; Netflix is more profitable at a lower multiple; ServiceNow grew amid multiple compression. SoFi's appeal hinges on earnings near management's long-term expectations. McDonald's ranks among the world's highest-quality businesses at one of its more reasonable valuations in years. AI disruption weighs on Adobe's valuation; Brookfield compounds assets at a comfortable long-term price. … Show more
Low forward earnings multiples across eleven stocks cannot persist indefinitely. Nvidia trades near 17.5x, its lowest in over a decade; Oracle near 15x, its lowest in six years. Uber is at 17x, Broadcom 19x, Vistra 15x, AppLovin 14.5x, TSMC 19x, Forgent Power Solutions 18x, Nokia 19.5x, American Express 17x and Western Digital 14x. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
Netflix's earnings growth cannot keep relying on price increases or a one-time ad-tier rollout when future ad growth depends on impressions. The password-sharing crackdown, ad tier and repeated price hikes amid declining time spent signal a mature business; podcasts and live sports look like attempts to find another growth leg. There is no reason to own the stock beyond its discount to historical valuation, which it should command. x.com x.comÂ
Amazon, Microsoft, Meta, ServiceNow, UnitedHealth, Mastercard, MercadoLibre and Netflix offer the most quality for the price paid. As Warren Buffett put it, price is what you pay and value is what you get. x.com x.com x.com x.com x.com x.com x.com x.comÂ
Nvidia, Microsoft, Adobe, Salesforce, Netflix and Amazon are quality companies trading at historically cheap valuations right now. x.com x.com x.com x.com x.com x.comÂ
Netflix's competition and valuation leave its risk/reward well behind other opportunities. It competes with Amazon, Disney, Apple and YouTube, while trading at about 20x next-twelve-month earnings for roughly 14% annual EPS growth over the next few years. It is mostly a great company, but these numbers do not make it a multibagger. x.com x.com x.com x.comÂ
These ten businesses look ridiculously cheap against their own history on forward earnings. SoFi trades at 22.7x vs 48x in 2025, Uber 17x vs 24x last year, Netflix 20.6x vs 39x in 2024, Amazon 27x vs 45x in 2023, ServiceNow 31.1x vs 68x in 2024, Nvidia 19x vs 36x in 2025, Salesforce 16.2x vs 30-32x, Adobe 9x vs 26x in 2024, Microsoft 25.3x vs 32-35x, and Broadcom 20.5x vs 44x in 2025. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
Cash generation and market values have diverged for these twelve beaten-down stocks. Over the long term, valuations tend to follow the cash businesses produce; the charts compare quarterly free cash flow with market capitalization for Uber, Netflix, Intuit, Adobe, PayPal, McDonald's, Snap, Duolingo, Chewy, Pinterest, Reddit and e.l.f. Beauty. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
Netflix at 33x is too expensive for 16% revenue growth after an extremely ugly quarter. It missed its EPS guide and guided lower, is about to test short-form video, which says a lot about organic growth concerns, and its founder is leaving. By comparison, Nvidia trades at 22x growing 72% and Reddit at 21x growing 69%. x.comÂ
Nvidia's rising revenue alongside a much lower P/E is getting hard to ignore. Its chart shows quarterly revenue above $80 billion in Q2 2026 while the P/E is around 30x, down from much higher multiples in prior years. x.comÂ