I see a lot of people talking about deep value plays like
$PYPL ,
$ADBE ,
$DUOL ,
$INTU , etc.
And I get it.
If you look purely at fundamentals, a lot of these companies still look great.
Strong margins, strong cash flows, buybacks, sticky customers, proven business models.
But the stock prices are telling a different story.
The market is not only asking “is this a good business today?”
It is asking “what does this business look like in 3-5 years if AI keeps disrupting software, payments, education, creative tools, and back office workflows?”
That is why I think focusing only on fundamentals in a raging bull market can leave you way behind.
You also need to understand themes, market narratives, disruption risk, multiple expansion, and where capital is actually flowing.
A cheap stock is not always mispriced.
Sometimes it is cheap because the market is questioning the future of the business.