Weekend Investor: The Week That Was

Your 5 minute market recap.

Author

Travis Hoium
September 10, 2023

I hope you had a wonderful week!

Labor Day week is always a little slow on the stock market and this week was no different. No eye-popping earnings reports, no product announcements, and no major economic data.

That will change next week when the iPhone 15 is announced. If there’s anything interesting to cover I’ll be back next week to do that.

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In case you missed it

Here’s some of the content I put out this week. Enjoy!

  • September 2023 Asymmetric Portfolio Allocations: The Asymmetric Portfolio got two new additions last week from the Asymmetric Universe of stocks. In total, I bought four stocks last week.

  • ESPN’s $10 Billion Gamble: ESPN is dark for Charter Spectrum subscribers and this may be the tipping point for ESPN to go all-in on streaming.

  • Is PayPal Stock a Buy?: PayPal has been beaten up and for good reason. But shares are now trading in value territory and it may be time to start buying.

  • Value Investing Gems: 3 stocks that are great businesses trading for surprisingly low prices.

10x Growth Right Under Our Noses

On April 13, 2023, I covered published a spotlight article on Cruise, which is 80% owned by General Motors. The thesis was that Cruise could build an autonomous ride-sharing business that could generate hundreds of millions of dollars in revenue within a decade. At the time, Cruise had limited operations in 3 cities and my growth projections seemed outlandish.

Less than five months have passed since that article and Cruise has announced at least initial mapping in 12 additional cities. In addition to that, it’s expanded the service area in Phoenix by 20x.

I can’t say I expected this rate of expansion, but GM CEO Mary Barra thinks Cruise can generate $50 billion in revenue by 2030, so the bar is set high. The business model will be bolstered if a custom ride-sharing vehicle called the Cruise Origin is as technically advanced and cost-effective as hoped.

This week, the news was that regulators are expected to approve the Cruise Origin (shown below) for testing on public streets within days. The vehicle needs an exemption because it doesn’t have a steering wheel or pedals…which are required by law.

This would be a huge step for Cruise, although the road has been bumpy, including some embarrassing traffic jams and a few crashes. But the company is now driving about a million miles a month completely autonomously. That’s seriously impressive.

I’ll keep covering Cruise (and by extension GM) from an investment perspective here on Asymmetric Investing, but for fun, I’ve also created a weekly newsletter just covering Cruise. If you want to keep up with Cruise’s growth, this is the best place to do it.

Thank you for being an Asymmetric Investing subscriber. If you want all of my stock deep dives, stock updates, and access to Asymmetric Portfolio trades before I make them you can subscribe below. The premium subscription is what makes this newsletter possible so I appreciate the support.

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Disclaimer: Asymmetric Investing provides analysis and research but DOES NOT provide individual financial advice. Travis Hoium may have a position in some of the stocks mentioned. All content is for informational purposes only. Asymmetric Investing is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any asset involves risk and could result in significant capital losses. Please, do your own research before acquiring stocks.

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