Top 2 Stocks to Buy Now (While Everyone Is Focused on SpaceX)

[00:00:00]Right now, almost every investor in America is staring at the same thing.

[00:00:04]One name, one IPO, one massive hype machine that has sucked all the oxygen out of every financial conversation happening this week. And honestly, I get it. It is exciting. It is flashy. It feels like the future. But here is what nobody is talking about. Sometimes the most dangerous place to put your money is exactly where everyone else is looking.

[00:00:27]Today, I want to walk you through two stocks that I think are in a much better position to generate real returns over the next several months.

[00:00:36]While the rest of the crowd chases something priced for absolute perfection, and I am going to show you a specific income-generating strategy on both of these stocks that completely changes the way you think about entering positions. It is not what most people do, and it is genuinely one of the most powerful tools available to everyday investors.

[00:00:58]Let's get into it. Let me address SpaceX directly first, because I think it deserves a fair, honest look before I make the case for why I would not be putting $100,000 into it at this valuation. SpaceX is, without question, one of the most extraordinary companies ever built. Reusable rockets, satellite internet at global scale, crewed missions to the International Space Station. This is not a company you dismiss lightly.

[00:01:26]When Goldman Sachs projects that SpaceX's AI-related revenue could grow from around $3.2 billion in 2025 to somewhere around 322 billion by 2030.

[00:01:39]That is a staggering projection, 100 times growth in 5 years.

[00:01:45]But here is the part where I want you to slow down and think carefully. The price you pay for any asset matters just as much as the quality of that asset.

[00:01:55]SpaceX is reportedly coming to market at around $135 per share, a valuation somewhere in the neighborhood of $1.77 trillion.

[00:02:06]The company reportedly lost billions of dollars last year. And at that IPO price, investors are paying close to 95 times revenue, not earnings, revenue.

[00:02:18]If you assume the stock doubles after the IPO, and a lot of people online right now are assuming exactly that.

[00:02:26]We are talking about a $3.5 trillion valuation, nearly 190 times last year's revenue. You are essentially betting that this company will grow into one of the largest valuations in human financial history from day one. Maybe it plays out, but for me that kind of setup does not feel like investing. It feels like speculating.

[00:02:47]And there is a significant difference between those two things.

[00:02:51]Here is my honest concern, the lockup period, the one your broker probably will not explain before you hand over your money.

[00:03:00]When a company goes public, the founders, early investors, and employees are legally prevented from selling for typically 6 months. At month six, the dam breaks. All those insiders who have been watching their net worth locked up, they can finally sell, and many of them do.

[00:03:19]Very often, 6 months after a major IPO, you see a meaningful drop in the stock price. Not always, but often enough that it is worth knowing about. My takeaway, SpaceX may be an extraordinary company, but extraordinary companies at extraordinary valuations with no margin of safety are not extraordinary investments. They are hopes priced as certainties, and hope is not a strategy.

[00:03:45]And then, so where does that leave us?

[00:03:47]It leaves us looking for quality, companies with proven revenue growth, expanding margins, strong cash positions, a clear competitive advantage that is unlikely to disappear. Two names keep rising to the top when I apply those filters right now. Palantir Technologies, ticker PLTR, and Nvidia, ticker NVDA. Stock number one.

[00:04:10]Palantir Technologies, ticker PLTR.

[00:04:14]If you follow this space at all, you know Palantir has been on an incredible journey over the last couple of years, and recently the stock has pulled back, roughly 13% over the last week, now trading around $135.

[00:04:28]After some investors bought in at the 150 to 160 range. For a lot of people, that kind of drop feels scary.

[00:04:36]For me, a pullback in a fundamentally strong growth company is not a warning sign. It is an opportunity.

[00:04:43]Here is why.

[00:04:44]First, the balance sheet. Palantir is sitting on approximately $8 billion in cash and carries very little debt.

[00:04:52]In an environment where elevated interest rates have crushed a lot of growth companies under debt loads, Palantir's cash position is a serious competitive advantage. They are not hostage to the credit markets. That cash gives them flexibility to invest, hire top talent, and weather any short-term storm without missing a step. Second, the moat. Palantir has deeply embedded itself in both the US government and the commercial sector in a way that is genuinely difficult for any competitor to replicate. Their software platforms around AI-driven data analytics and decision-making are not something you just swap out overnight. These are mission-critical systems. When you are processing sensitive government intelligence or running complex operational analytics for a Fortune 500 company, you do not switch vendors on a whim. There are switching costs, training costs, and integration costs. Palantir has built a moat around its customer base that a lot of investors are still underestimating.

[00:05:53]Now, the numbers. Revenue growth running at 85% year-over-year.

[00:05:58]US commercial segment grew 133%.

[00:06:02]Full year revenue outlook up 71% and unusually strong guide for a company of this size. Margins expanded from 31.6% to 37% on a trailing 12-month basis.

[00:06:15]That means Palantir is not just growing revenue, it is growing more profitable as it scales. That is the combination you are looking for in any growth business.

[00:06:25]Here is my honest concern. Palantir trades at around 150 times earnings right now. I understand why that makes some investors uncomfortable, but 1 year ago the PE ratio was around 600. It has come down dramatically as earnings have grown. The company is growing into its valuation. That is the opposite of what you get with SpaceX at IPO, where you are buying a company that has to execute flawlessly on projections spanning the next 5 years just to justify what you are paying today.

[00:06:58]My takeaway, 8 billion in cash, no meaningful debt, mission-critical software embedded in government and enterprise workflows, 85% revenue growth with expanding margins. A 13% pullback in a company this strong is not a red flag. It is an entry window. Stock number two, Nvidia, ticker NVDA. If Palantir is the analytical under the radar play, Nvidia is the undisputed heavyweight champion of the artificial intelligence infrastructure boom.

[00:07:30]And here is what I find genuinely fascinating. Nvidia just reported earnings. The results were strong by any reasonable measure and the stock initially sold off.

[00:07:41]This pattern has played out multiple times with Nvidia.

[00:07:44]Over the last couple of years, numbers come in better than expected. A certain group of traders sells the news, and every single time that has happened, longer-term investors who held through the noise or added on the dip have been rewarded. Nvidia is not a chip company anymore. If you still think of it that way, I want you to gently challenge that mental model. Nvidia has become the foundational infrastructure layer of the global AI buildout.

[00:08:10]Their GPU architecture, their CUDA software ecosystem, their data center products, selling to hyperscalers, sovereign governments, enterprises of every size, and companies building AI products that did not exist 3 years ago.

[00:08:24]The demand for what Nvidia makes is structural, not cyclical. The world is not going to decide it needs less AI compute next quarter. Currently trading around $210 per share, not cheap on traditional metrics, but the growth rates this company is putting up justify a premium valuation in a way that is far more grounded than what you are being asked to pay for SpaceX.

[00:08:48]Here is my honest concern. Nvidia's valuation still assumes continued dominance in a space where competition is intensifying.

[00:08:57]AMD, custom silicon from Amazon and Google, and the possibility of architectural shifts in AI compute are all real variables worth watching. The moat is strong today. It needs to stay strong tomorrow. My takeaway, the AI capex cycle is not slowing down. Nvidia is the primary infrastructure beneficiary of that cycle. Post-earnings dips in this stock have been buying opportunities every single time they have appeared. This one looks the same.

[00:09:25]Drop a comment right now. Have you ever sold put options before? Because what I am about to show you completely changes the way you think about entering both of these positions.

[00:09:36]The strategy, selling put options.

[00:09:40]Now let me walk you through the specific approach I used to enter positions like these, because there is a way to generate income while you wait for the stock to come to you at a price you are comfortable with. It is called selling put options. I know that for some of you, options trading sounds complicated or intimidating. The core concept is genuinely not that hard. When you sell a put option on a stock, you are essentially agreeing to buy that stock at a specific price called the strike price on or before a specific date. In exchange, the market pays you a premium up front. Cash that goes directly into your account the moment the trade is filled. You keep that premium no matter what happens. Here is what that looks like in practice on Palantir. Palantir is trading at $135.

[00:10:28]You want to own it, but would prefer to buy it at $130.

[00:10:32]Instead of sitting on the sidelines hoping for a $5 drop, you sell a put option with a 130 strike price expiring in about a month. The market might pay you somewhere around 5 to $5.80 per share for that contract. Each contract covers 100 shares. That is $500 to $580 in cash collected immediately.

[00:10:54]Now one of two things happens. Either Palantir stays above 130 by expiration, your put expires worthless, and you keep the entire premium as pure profit without ever buying a single share, or Palantir drops below 130.

[00:11:11]You get assigned 100 shares of a company you genuinely wanted to own anyway, and your effective cost basis is not 130. It is closer to 124 to 125 after accounting for the premium you already collected. You are buying a stock you wanted at a price meaningfully below the current market price, and you are paid to wait for it. For Nvidia, the dynamic is similar with the stock around $210, a 200 strike put at roughly 30 delta, and about 30 days to expiration, is currently generating around $600 per contract or more. The implied volatility is slightly lower than Palantir at around 40%, but the absolute premium amounts are still very attractive. Given Nvidia's share price, the liquidity in Nvidia options is extraordinary. Open interest in the tens of thousands on popular strikes.

[00:12:05]Bid-ask spreads tight enough that transaction friction is minimal.

[00:12:09]One thing I want to flag because I have seen new traders get tripped up here.

[00:12:13]When you evaluate which expiration to use, always check the bid-ask spread and the open interest. If you pick an expiration that is not a standard monthly option, the traditional third Friday of the month, you will often find that the spreads are very wide, and the open interest is essentially zero. Nobody is trading those options. Getting filled at a fair price becomes very difficult. Stick to the monthly expirations with high liquidity. That discipline alone will improve your results meaningfully over time.

[00:12:46]Here is my honest concern about this strategy. Selling puts works beautifully in the companies I described.

[00:12:53]Strong balance sheets, durable moats, proven revenue growth. It is not a strategy I would run on speculative names, or companies I would not want to own at the strike price. The only scenario where this creates a real problem is if you sell a put on a company whose story fundamentally breaks, and you end up assigned shares of something deteriorating.

[00:13:15]Know what you own before you run this strategy on it.

[00:13:19]My takeaway, you are essentially being paid to be patient. Collect the premium.

[00:13:24]Wait. If the option expires worthless, keep the money and run it again. If you get assigned, you now own shares of Nvidia or Palantir at a cost basis well below where the stock was trading when you entered the trade. That is not a bad outcome in either direction. Let me bring this all together. Two stocks, one strategy, one clear alternative to chasing something priced for absolute perfection.

[00:13:51]Palantir tells you that 8 billion in cash, mission-critical governments and enterprise software, and 85% revenue growth create a moat that is genuinely difficult to replicate. And a 13% pullback does not change any of that.

[00:14:06]Nvidia tells you that the foundational infrastructure layer of the global AI buildout does not get disrupted just because traders sell the news on a strong earnings report. And the put-selling strategy tells you that you do not have to choose between sitting on the sidelines or chasing a stock at the wrong price. You can generate income while you wait. Lower your cost basis before you own a single share and put time on your side instead of against you.

[00:14:35]Here is the investing truth I want to leave you with. Right now, there is an enormous amount of attention and emotional energy being directed at one IPO, and I understand the appeal. But when you are managing real money, the money that took real time and real effort to accumulate, the question you have to ask yourself is not whether a company is great. The question is whether the price you are paying gives you a reasonable margin of safety.

[00:15:03]At nearly $2 trillion in valuation for a company with massive losses on the income statement and a revenue multiple approaching 95 times, I do not see that margin of safety. What I see instead is a lot of hope priced in, and hope is not a strategy. Palantir and Nvidia have proven revenue growth, expanding margins, dominant competitive positions, and genuine relevance to the most important technology trend of our generation. That is where the margin of safety lives. That is where the real opportunity is right now. Hit subscribe so you never miss a breakdown like this one.

[00:15:39]Drop a comment telling me whether you have used put options before or whether this is the first time you are hearing about this strategy. I read every single one. No sponsors, no fluff, just the analysis. See you in the next one.