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.com 

Big money is rotating out of overextended chips and AI plays, leaving semiconductor stocks that went straight up as exit liquidity for retail still piling in. The money is moving into software such as Accenture, Salesforce and ServiceNow, energy names Hawaiian Electric and Southern Company, and boring dividend stocks Whirlpool, Target and UPS. It is also flowing into China: Alibaba, JD.com, PDD, Baidu and Chinese internet stocks. x.com  x.com 

PayPal's cost cuts and reserve releases prop up short-term numbers, while investing for growth wastes time. Its slow bleed gives delusional bulls hope, making it the ultimate value trap; it should not be a public company. x.com 

Six high-quality favorites of well-known investors trade at discounts: Uber 28%, held by Bill Ackman and Thomas Russo; Fair Isaac 53% and Intuit 46%, held by Dev Kantesaria and Lindsell Train; Microsoft 29%, held by AltaRock and Chris Hohn; Brookfield 23%, held by Josh Tarasoff and Chuck Akre; and S&P Global 27%, held by Kantesaria and Hohn. x.com  x.com  x.com  x.com  x.com  x.com 

Falling inflation swaps remove the war's biggest headwind for inflation-sensitive high-beta stocks such as Nebius, Cipher, Coinbase, Circle, Reddit, Lemonade, CoreWeave and Strategy, which are flying and should keep rallying through the summer barring geopolitical setbacks. Per @MikeZaccardi, inflation swaps have plunged, raising the question of whether Goldilocks is back. x.com 

Jack in the Box, Wendy's and Papa John's could all go bankrupt as fast-food prices outrun what consumers will pay. Customers are pushing back or finding comparable value at chains like Chili's. Freight costs from diesel and trucker shortages, plus rising food costs, will squeeze margins. Menus likely need to reset lower, which is hard while input costs climb, and GLP-1 drugs also hurt volumes. Some may be acquired instead, and a few could offer select opportunities as prices reset. x.com 

Walmart, Shopify, Uber and Airbnb are businesses consumers won't give up even when money is tight, because they make life a little better. Spreading the basket across sectors, with Tesla included as the exception, means others can carry it if one stumbles. x.com  x.com 

Consumer-facing stocks remain vulnerable as even middle and upper-middle income shoppers pull back. Dave & Buster's fell 15% on ongoing "entertainment weakness", dragging the sector including Texas Roadhouse. Dollar General said at a Goldman conference that customers across income cohorts are somewhat distressed, with middle to upper-middle shoppers acting like lower-income ones. Diesel near $7 and gasoline near $4.50 add about $700M a day in fuel costs versus a year ago. x.com  x.com  x.com  x.com  … Show more

Strategy's new capital framework marks a shift to selling bitcoin at a loss to cover debts, at best a graceful unwind and more likely a head fake before lower. Having issued perpetual preferreds and converts against an asset with no cash flow, and with more common dilution untenable, it becomes a permanent bitcoin seller whose stack shrinks each year. Saylor sits on about $14B of unrealized losses, and 1920s investment trusts that sold holdings to buy back shares entered a death spiral. x.com  … Show more

Intuit is a high-quality compounding software business worth owning while sentiment is weak, thanks to ecosystem advantages across TurboTax, Credit Karma, QuickBooks and Mailchimp and AI layered into products with deep customer relationships. It reported strong Q2 FY2026 results and reiterated full-year revenue guidance of $20.997B-$21.186B, about 12-13% growth, with 14-15% non-GAAP EPS growth. x.com