James Cakmak on Market Opportunities Beyond Big Tech: Meta, Bitcoin, and Micron

Meta's Valuation and AI Investments

• 💡 Meta is considered attractively valued at around 27 times earnings, with a growing top line.
• ⚠️ While the bottom line growth may slow, Meta is still recommended for growth-oriented portfolios due to its optionality.
• 🚀 The company is seeing revenue synergies from AI investments in its ad tech business, a rare occurrence in the current market.
• 📈 Data collection from new products like smart glasses, while balancing privacy, presents significant ad revenue potential.

Investment Strategy and Convexity

• 🎯 Clockwise Capital is underweight Meta and Nvidia, focusing instead on companies with higher convexity and greater return potential.
• ⚡ The firm seeks to maximize returns over shorter time frames in a volatile market where price targets can be met quickly.
• 🧩 Investment opportunities are not limited to the big tech wave, with pockets of potential found across various sectors.

Undervalued Assets and Opportunities

• 💰 Bitcoin is highlighted as the most underappreciated asset, with strong potential for outperformance in 2025 and beyond.
• 📊 Within the semiconductor sector, Micron is favored over Nvidia due to higher convexity, potential for multiple expansion, and reduced China risk.
• 📈 Smaller cap companies like Upstart and KKR are also identified as having significant economic opportunities.