Walmart Inc.

(New York Stock Exchange)
Back to all articles
Somewhat Bullish +50

Why you should 'never count out' Google

AI-generated analysis

🀷 GraniteShares founder Will Rhind joined Yahoo Finance's Market Madness segment to pick winners in four stock matchups.

πŸ’Ό He selected Palantir over Robinhood, citing recent Middle East news and opportunities for valuation re-examination despite current volatility.

πŸ›’ For the Walmart vs. Eli Lilly matchup, Rhind chose Walmart as a retail gold standard with massive home access and AI resilience.

πŸ€– In the Google vs. AMD pairing, he favors Alphabet for its successful pivot from an AI laggard to a leader following record revenues.

πŸš— Rhind backed Tesla against Bank of America, anticipating future growth from autonomous driving and Optimus humanoid robot deployments.

πŸ“‰ NFJ Investment Group's Burns McKinney also participated, selecting JPMorgan over Netflix in his first matchup.

πŸ’΅ McKinney highlighted JPMorgan's 13x earnings multiple as a double typical discount with strong dividend growth and solid management track record.

⚠️ He noted Netflix lacks immediate catalysts after its Paramount bid call-off while subscriber growth is slowing.

πŸ“’ The competition entered the Sweet 16 phase after Nvidia lost to McDonald's in the previous round.

πŸ† Big names like Walmart, Alphabet (Google), and Tesla remain in the tournament on the left side of the bracket.

Bullish Signals
  • Walmart (WMT) is considered a gold standard in retail, having reached over $1 trillion in revenue with access to approximately 95% of US homes for rapid delivery.
  • Walmart's business is described as completely resilient, capable of delivering good results despite potential market shocks and shocks to the industry.
  • AI and autonomy are expected to only benefit Walmart going forward, offering upside potential.
  • Google (GOOG, GOOGL) successfully rewrote its narrative from an 'AI laggard' to an 'AI leader,' pivoting effectively to AI-based searches.
  • Google's infrastructure and properties like YouTube continue to grow massively, with advertising revenue remaining exceptionally resilient.
  • Google recorded record revenues last year, demonstrating strong performance.
  • Tesla (TSLA) retains incredible potential for its future story as autonomous deployment, Full Self-Driving, and Robo Taxis have received great customer feedback.
  • Investors remain excited about Tesla's Optimus humanoid robot, which could become an amazing product once deployed at scale.
  • JPMorgan (JPM) trades at only 13 times earnings, representing about a 40% discount to the market, which is double their typical discount.
  • JPMorgan has tripled its dividend payout over the past decade and now offers a dividend that is twice that of the market average.
  • JPMorgan demonstrated strong management during prior crises like the pandemic and global financial crisis by taking share in various businesses.
  • The company benefits from deregulation, which should support continued growth.
Risk Factors
  • Walmart faces significant competition and potential market share erosion as McDonald's recently ousted Nvidia in their Market Madness matchup.
  • Google previously was labeled an 'AI laggard', indicating past struggles and slow adaptation compared to competitors like Microsoft or Amazon in the AI space.
  • Tesla has had a rocky year with key future stories like full self-driving and humanoid robots not yet materialized at scale, creating execution risk.
  • Netflix's growth is slowing despite recent stock surge after cancelling Paramount bid, removing a major catalyst and limiting near-term upside potential.
Full Analysis
GraniteShares founder and CEO Will Rhind joined Yahoo Finance's Market Madness segment to share his stock picks for the tournament's Sweet 16 matchups. On the left side of the bracket, Rhind favors Palantir (PLTR) over Robinhood (HOOD), citing Palantir's significant presence in news regarding events in the Middle East and its exponential growth since moving to Nasdaq. He notes that while valuation concerns have historically been a knock against Palantir, recent stock volatility presents an opportunity for investors to re-examine the company. For the match between Eli Lilly (LLY) and Walmart (WMT), Rhind selects Walmart, describing it as the "gold standard" in retail with over $1 trillion in revenue and delivery access to approximately 95% of US homes. He highlights Walmart's resilience against shocks and suggests that advancements in AI and autonomy will further benefit the company's trajectory. In the battle between Google (GOOG/GOOGL) and AMD, Rhind recommends Google, arguing that the narrative has shifted from a former "AI laggard" to an AI leader following last year's performance record. He points to exceptional resilience in advertising revenue, record revenues from last year, and strong growth across properties like YouTube as key factors. For the final matchup between Tesla (TSLA) and Bank of America (BAC), Rhind picks Tesla, emphasizing that while the company has had a rocky year similar to other mega-cap tech stocks, future potential lies in the deployment of autonomy and robo taxis. He notes that while Full Self-Driving and the Optimus humanoid robot have received great customer feedback, these technologies have not yet been deployed at scale, representing significant unrealized value for investors. NFJ Investment Group managing director and senior portfolio manager Burns McKinney also contributed picks to the right side of the bracket. For the match between JPMorgan Chase (JPM) and Netflix (NFLX), McKinney selects JPMorgan, noting it trades at 13 times earnings which represents a 40% discount to the marketβ€”double their typical valuation range. He highlights JPMorgan's dividend yield, which is twice the market average and has tripled over the past decade, alongside a 17% return on equity. McKinney praises JPMorgan's management team for their ability to take market share through crises and technology investment, benefiting from deregulation, whereas he sees Netflix growth slowing after its Paramount bid catalyst was removed. The segment concluded before fully discussing the remaining matchups between Amazon and Delta, McDonald's versus Nvidia, and Nike against Coinbase.