Investwithj

Detailed investment and financial research. Establishing a process to make investing easier and deliver market beating returns. 🎥YouTube: InvestwithJ📈

[Investwithj @Investwithj25]

Meta has got to be one of the best opportunities in the market

YouTube: https://t.co/VywrskOtZR

[Investwithj @Investwithj25]

Circular Deals continue in the AI space.

Meta’s recent partnership with AMD is just the newest case of how AI partnerships seem to be funding each other.

Meta is buying 6 gigawatts of AMD’s chips which will obviously boost revenue for AMD.

In return, AMD is giving meta 160 million of its shares….

Meta is assisting AMD’s fundamentals to try and get a decent return on their investment.

Now, it’s clear that there is real demand for AMD and they have a great business. There is no denying that. I am not bearish on AMD.

But, the circularity of these deals has to cause some skepticism.

[Investwithj @Investwithj25]

@NotA_Bull Def not $META

$META derives 98% of revenue from advertising which is highly cyclical. When the economy gets weaker, ad spending falls.

[Investwithj @Investwithj25]

I think a lot of retail investors are getting caught up in the idea that “every software stock is cheap= buy”

Investors need to think about if the software company they are buying has a defense against AI. We know AI is going to be a thing, but it’s not going to kill every software stock.

However, there will be casualties at the hand of AI. This SaaS sell off may be overdone, but I think it’s warranted for some weak moat businesses.

[Investwithj @Investwithj25]

What does this mean for your portfolio?

Nothing. If you are a long term investor then you have wildly different goals than a hedge fund.

Hedge funds are geared to perform now. To deliver market beating returns this year. If they don’t do that they lose clients.

This strategy has led to over 90% of them underperforming the market over a multi-year span.

Don’t try to invest like a hedge fund, you will lose

[Investwithj @Investwithj25]

$GOOGL is essentially a tech conglomerate. Similar to $MSFT and $AMZN, they have so many different revenue streams which investors should love.

Their revenue isn’t tied to just search anymore. They’re in advertising, autonomous vehicles, chip manufacturing and so much more.

That’s what these companies do. They print cash and reinvest it and have compounded into some of the largest companies in the world

[Investwithj @Investwithj25]

$META is one of the most irrationally punished companies in the market right now.

- it’s showing AI can offer substantial ROI

- revenue is expected to grow 30% next quarter

- Meta has quite literally already applied AI to its ad targeting and algorithms retention

Yet despite this, the stock trades for a 21 fwd PE…

[Investwithj @Investwithj25]

If anyone is wondering how this affects your portfolio here’s the breakdown:

It doesn’t… at least at this scale. I like to look at everything with context bc numbers mean nothing without context.

Daily treasury trading $600B. So this is an extremely small amount. If it was like $400B it would be a different story

[Investwithj @Investwithj25]

@StockSavvyShay Yet the stocks are the complete inverse. If you told me $AMZN passed $WMT in revenue, I would have thought $AMZN commanded the 50 P/E ratio.

Instead, $AMZN sits at a 24-26 Fwd P/E. All because of AI spend. This is the irrationality of the market at work.

[Investwithj @Investwithj25]

The AI fears amongst the 3 mag 7 stocks ($AMZN, $MSFT, $META) have been overblown. We���re seeing valuations of low 20’s to teens fwd P/E’s.

Valuations like that have been historically great times to buy these mag 7 stocks. Take the tariff fear last year, for example. It was a real problem, but an overblown reaction.

If you bought Amazon during the market drawdown last year, you’d still be up 15-20% even with this drop.

[Investwithj @Investwithj25]

Monday February 16th, 2026

Market Update:

It’s been no secret that February has been ugly for the stock market. The S&P 500 and Dow Jones each fell about 1% last week while the NASDAQ fell about 2%.

The AI cap ex spending has split investors. Many investors see the cap ex spend as a questionable move that is compressing margins and eating into free cash flow.

Defensive stocks have seen an increase as a result. Stocks like $WMT, $COST, and $PEP are viewed as the favorites recently despite their valuations:

- $WMT 46 P/E or 45 Fwd P/E
- $COST 54 P/E or 50 Fwd P/E
- $PEP 27 P/E or 19 Fwd P/E

The other half views AI as a necessary investment as it looks like it could be the next tech frontier.

What I think all investors can agree on is that AI is going to shift the dynamics of the market… for better or for worse.

[Investwithj @Investwithj25]

@StealthQE4 I mean when you go through the comments of other X users here, a lot of the replies are straight from ChatGPT.

Seems like people aren’t even giving an attempt at an intelligent opinion. The more they’re able to post= the more opportunities to gain popularity

[Investwithj @Investwithj25]

AI is going to kill off some of these software stocks. The winners a couple years ago aren’t necessarily going to win 5 years from now.

Not every SaaS stock is going to be a winner, but it’s also true not every SaaS stock is going to be a loser.

The SaaS companies with a great moat, improving fundamentals, and protections against competition will reap the rewards.

[Investwithj @Investwithj25]

This seems like a contrarian take on Twitter but not every SaaS stock is a buy.

Some these SaaS moats could easily be undercut by cheaper services or an AI service that automates.

Companies could be oversold, but I’d rather put my money in the companies driving forward, not the ones praying for complacency.

Ask yourself a genuine question: What do you think AI will be able to do 3-5 years from now?

[Investwithj @Investwithj25]

Apple can leverage and use the work the other mag 7 stocks are doing.

They aren’t losing market share by not innovating. People are loyal to the Apple ecosystem.

They don’t compete in the ad space, they don’t compete in search, they simply have carved out their market.

Apple can afford to just sit back and let it all play out. Google’s already integrated in their safari platform and people download metas apps on their iPhone. So just let them do the work

[Investwithj @Investwithj25]

🚨🚨NEWS FLASH🚨🚨

Not every SaaS stock is a screaming buy.

A lot of “value investors” are simply looking at the valuations and saying they have been mispriced.

The key to value investing is buying HIGH QUALITY companies at GREAT prices.

What impenetrable moats do some of these companies have? How do we know what AI will look like in 5 years from now?

Investors need to be selective and really evaluate if there is a moat in the companies they buy.

[Investwithj @Investwithj25]

This is going to be a hot take and I might get some push back on this:

A lot of these SaaS companies are going to have similar stories as $PYPL.

$PYPL was the ultimate value trap. A stock that fell from $300 to $50 while fundamentals kept improving.

Yet, the company was losing power overall. More competition entered the market, failure to convert opportunities to meaningful revenue, and an overall weak stock with little moat.

But the valuation just kept getting cheaper and cheaper and people thought it had to go up. This similar story is playing out in software.

[Investwithj @Investwithj25]

Too many people don’t understand Microsoft.

The claims are that AI will eventually erode the Microsoft suite. Do you know how hard and how long it would take for that? What company is dumping office 365 for an unproven AI ecosystem.

Oh btw, office 365 has a reputation of being secure and protecting companies files. No AI system has been able to prove they could do that.

Or what about the claim that seat counts will go down as AI automates jobs and so Microsoft collects less revenue per user.

Copilot is being developed to automate data entry, file format, and communication. Once it can reliable do that, Microsoft will be able to integrate it fully into the Microsoft suite and charge a premium for it. So # of users can still go down as long as Microsoft charges more.

[Investwithj @Investwithj25]

@TheTechInvest Ray knows fear sells. His bearish outlook has always drawn attention and has worked.

But at the end of the day he knows the market continues to climb. Fear warnings sell in the short term, but confidence and consistency win in the long term.

[Investwithj @Investwithj25]

ROI is already showing up for some of these tech giants:

- $META is seeing revenue accelerate to the 25-30% range by using AI to target ads

-$MSFT is integrating copilot into their office 365 to automate data entry and simple tasks. This will allow MSFT to start charging a premium.

These companies have a roadmap. They aren’t just spending to be performative