Rate Of ReturnWhat is the connection between the heritage shown by strong teams in the World Cup and storage stocks?
Argentina vs Egypt was the most thrilling Round of 16 match of this World Cup, bar none. Egypt led 2-0 from the start, and Messi even missed a penalty in the first half. Everyone thought the defending champions were going home. What happened? They scored three goals in the final 13 minutes, winning 3-2.
This is the depth of a traditional powerhouse—even when behind, solid fundamentals and a talent pool allow them to fight their way back.
It's just like the blue-chip stocks in the stock market. Samsung Electronics' Q2 operating profit was 89.4 trillion won, a staggering 1,810% year-on-year increase, with a single-quarter profit exceeding the global tech company record set by NVIDIA. Companies like Alibaba and Google may have short-term fluctuations, but in the long run, solid fundamentals will see them through.
What about the dark horses?
Cape Verde, a small island nation with a population of less than 550,000, made its first World Cup appearance. They drew with Spain and Uruguay in the group stage and pushed Argentina to extra time in the knockout round. Goalkeeper Vozinha alone saved five shots from Messi.
But Cape Verde's rise is built on players "cultivated" by the European youth training system, with the entire squad valued at 87 million euros. This kind of explosive performance is the concentrated realization of the globalized football talent dividend.
There are also such dark horses in the stock market. Micron's single-quarter revenue was $41.46 billion, up 346% year-on-year, with gross margin soaring to 84.9%. SanDisk's revenue was $5.95 billion, up 251% year-on-year. SK Hynix's single-quarter net profit margin reached a high of 77%.
The problem with dark horses is—sustainability.
It's like the Croatian team, the 2018 runner-up. The golden generation has faded, and Modrić has bid farewell. The domestic talent development pipeline can't keep up, and after the glory comes a long period of rebuilding.
So, this leads to what I most want to say. A logic currently being traded in the market: memory stocks like SanDisk are transitioning from cyclical stocks to growth stocks. If this transformation is truly completed, the entire valuation system needs to be reassessed. Memory stocks are officially moving from "dark horses" to "strong teams."
The so-called depth of a strong team means that even if you make a short-term buying mistake, in the long run, it will eventually rise back. Because they have a system, a pipeline, and the ability to weather cycles.
$Alphabet - C(GOOG.US) $BABA-W(09988.HK) $Sandisk(SNDK.US)
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