The Five Best Buys Now
8 for the price of 5
Hi Multis
It's the 15th of the month and you know what that means: The Best Buys Now. And if you didn't know (because you are new or forgot the date), you saw it in the title, haha.
Let me repeat that the Best Buys Now are NOT stocks that I think have the most upside over the short term. They balance out quality and long-term value at the current price.
They were away for a few months, simply because I couldn't find enough attractive opportunities: the To Consider stocks. So, this 35th installment of the Best Buys Now (almost three years) brings you 8 stocks that I see as attractive.
8 for the price of 5, who wouldn't want that as a bargain, right? That's what you get here.
But without further ado, let's jump right in.
1. The Trade Desk
Is anyone surprised that The Trade Desk (TTD) is a Best Buys Now choice? After my analysis of the earnings and the valuation and Quality Score updates in this article, I think many Multis expected TTD here.
Most of the information I want you to know is in the two articles I linked aboveI have one more thing to add. It was brought out by The Information that Walmart renegotiated its deal with The Trade Desk from exclusive to non-exclusive. Again, as so often, the headlines were very deceiving. This is an example:
The title makes it seem like Walmart stepped away completely. Just to be sure, this was already renegotiated last year, not this year.
But even that must be put in context. Walmart and The Trade Desk signed an exclusive deal for four years in 2021. That deal was about to expire, so it had to be renegotiated. And it was. Not exclusive anymore, but still Walmart is an important partner for The Trade Desk. It simply means that Walmart can also use other platforms to buy ads.
During the conference call, Jeff Green said this:
In Q2, a record amount of spend was influenced by retail data, both on our platform and on the Walmart DSP, as more shopper marketing budgets flow into programmatic,
The Information report suggests Walmart could now work with Amazon. I think that shows there's a lack of insight here. Do you really think Walmart will share its anonymized customer insights with its biggest competitor? That's also what Jeff Green talked about when he said that Amazon is no real competitor for The Trade Desk.
There's a lot of noise out there about The Trade Desk and that's an advantage for long-term investors. Sure, the stock price of The Trade Desk could remain under pressure for a while, but I like extended periods in which I can add to my position.
2. Adyen
I’ve already done a full breakdown of the quarter. Let’s just say: 20%+ revenue growth, 50%+ EBITDA margins, and still misunderstood.
3. Duolingo
Everyone thinks ChatGPT will kill it. The numbers say otherwise. Revenue is up 245% since GPT-3.5 launched. And Duolingo has much more than that.
Want the full analysis of Adyen, Duolingo, and the rest of the Best Buys Now list?
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FYI: the average Best Buys Now pick performs 25.64% better than the S&P 500 (from May 2022 to May 2025).
The price will be hiked soon, so lock in your spot now.