Kurv Yield Premium Strategy Netflix NFLX ETF

Breaking: He refuses to give up on this

$Netflix(NFLX.US) stocks in hand. Other than you, you old thief, everything else is rising. tnnd

$Netflix(NFLX.US)

$NVIDIA(NVDA.US)$Intel(INTC.US)Context: Netflix is falling because Youtube is eating it's lunch. Since walking away from the merger with Warner Bros. Discovery 7 months ago, the share rose 10.4% but it has been on the downtrend ever since. Youtube is proving more popular as it's viewership was growing 14.2% in this July versus Netflix which shrunk by 7.8%. This has resulted in major Investment house like HSBC, and Well Fargo downgrading this stock.

My trade: sell

Takeaway: Netflix has endured 2 major falls, in 2011 72% drop and in 2008 37% drop and each time it came back stronger. Coming back this time around looks harder as it need to fight with Youtube which is offering mostly free content. Can Netflix fight back, let's continue watching Netflix!

$NVIDIA(NVDA.US)

Context: despite being the most valuable company in this world, the valuation of Nvidia is dropping. The forward PE is now just only 17x compare to AMD which is 40x. The low valuation is due to:

1. More in house GPU being developed by the like of Meta and Alphabet. Both companies has successfully launched their own AI chips.

2. The rising cost of memory chip is squeezing Nvidia profit margin by more than 3%.

My trade: observe for any sign of deteriorating profit before selling

Takeaway: Jensen Huang claim that this Nvidia is "incredibly misunderstood" but we prefer Nvidia earnings report to clear this misunderstanding. $Intel(INTC.US)$Netflix(NFLX.US)

$Intel(INTC.US)

Context: Intel stock is trending higher and it has been shedding some of it's unwanted baggage:

1. Management layer has been reduced to 6 from 12

2. 250 vice presidents have been cut, remaining only 200

3. The workforce has been shrunk to 39,700 and compensation to attrition has fallen 89% to $161 million.

However, the foundry business is still losing billons each quarters.

My trade: I am still bullish on Intel, having confident CEO Lip-Bu Tan has the discipline to bring Intel to another level.

Takeaway: Intel foundry business will need drastic improvement in both technology breakthrough and customers onboarding$NVIDIA(NVDA.US)$Netflix(NFLX.US)

$Intel(INTC.US)

context: There are rumor that Sk Hynix going to setup a manufacturing facility in US. Though this will definitely please Trump who is expecting Seoul to fulfill it US$350 billion pledge to invest in US but this does not sit well with the Koreans who view this as selling their country secret in producing High Bandwidth Memory to US. Currently Sk Hynix controls 50% of HBM global production and the US is not a cheap place to set up a manufacturing plant. A good example is TSMC who set up a plant in Arizona just to encounter not just cost overrun from US$12 billion to US$20 billion but also a clashing work culture where the US is more laid back compared to Asians. TSMC estimated that the cost of manufacturing in the US is 2x more expensive than in Taiwan.

My trade: I am still keeping my finger crossed that this deal can go through and Intel is still a good buy

Takeaway: Seoul will need to keep a balance between following the people wish or pleasing Trump in hope of lower US trade tariff.$NVIDIA(NVDA.US)$Netflix(NFLX.US)

$Intel(INTC.US)

Context: Intel was once the most dominant CPU maker. On Aug 2020, right before dot-com bubble, Intel market valuation stand at US$509 billion and it share was at US$74.88, the highest at that time. Andy Grove was the CEO from 1987 - 1998 and popularized the phrase "Only The Paranoid Survive". But a series of missteps like ignoring Apple request to build a mobile CPU for them citing that the mobile CPU margin is only US$12-15 versus PC CPU margin at US$225, did not have the foresight that GPU will be more usable than CPU and investing too little into it's fab and relying too much on contracted foundry and making them more successful than them, TSMC should thank Intel on this.

My trade: I am still buying on Intel because the above and Intel has woken and is now tirelessly addressing all the shortcomings.

Takeaway: If only Intel listens and follows Andy Grove's advice of being paranoid at all times then they won't have to lick their wound right now. $NVIDIA(NVDA.US)$Netflix(NFLX.US)