Let’s get into this week’s mailbag…

You talk about the importance of watching earnings season closely… A few BIG companies reported earnings this week. Mind sharing your thoughts on these reports? – Chris

Thanks for being a loyal reader, Chris! This week was massive for earnings announcements. Meta, Amazon, Apple, Microsoft, Visa, Boeing, and Qualcomm (plus many more) all reported. Here are my biggest takeaways:

The AI Revolution is NOT Stopping (Do Not Believe Otherwise) – Despite all the noise, the skepticism, the “AI bubble” talk… the major players keep doubling down.

Meta, Amazon, and Microsoft all raised their capital expenditures guidance again. (CapEx = long-term investments into their business. And right now, that mostly means buying even more Nvidia GPUs.)

Why? Because the opportunity is still massive. We’ve barely scratched the surface.

AI may already be part of your daily life – ChatGPT, smart assistants, better search results – but the enterprise world is just getting started. Next comes physical AI: robotics, autonomous vehicles, and everything in between.

And after that? Who knows. But this wave isn’t over.

Meta Crushes Q2 Earnings, Stock Soars – Meta (META) blew past Wall Street expectations in Q2, sending shares up 12% on Thursday.

The company reported $7.14 in earnings per share on $47.5 billion in revenue – far above analyst estimates of $5.89 and $44.83 billion. Advertising, the company’s core business, brought in $46.5 billion versus a $44.07 billion forecast.

But the real kicker? Meta’s Q3 guidance. The company now expects revenue between $47.5 billion and $50.5 billion, smashing the $46.2 billion consensus.

Beyond the numbers, Meta is leaning hard into AI. It recently hired top talent from OpenAI, Apple, GitHub, and Scale AI – including naming Shengjia Zhao, a former OpenAI researcher, as chief scientist of its new Superintelligence Lab.

The message to Wall Street is clear: Meta isn’t just playing catch-up in AI. It wants to lead. And this quarter showed it's putting up the numbers to back that up. Keep holding this stock.

I’ve committed $50,000 to my own “Half Million Mission” and have seen strong gains in stocks like FNMA, META, GOOGL, MSFT, RKLB, PLTR, and NVDA. Since you don’t hold all of these in your portfolio, how should I know when to sell? Or should I just keep holding like you plan to do with yours? – Greg

Greg, I’m glad to hear you’re sitting on some solid gains! And I think there’s more to come.

Even though I don’t hold all of those names in the Million Mission portfolio (mainly because I’m using high-risk, high-reward strategies there to try and 10x), I do own many of them in my personal portfolio.

As for when to sell? The easiest way to stay updated is to keep following The Million Mission. If my outlook on any of those major tech names changes, I’ll talk about it here.

But for now? You’re in winners. And in my view, they still have room to run. Stick with them.

I'm approaching 70 and still new to managing my own investments. I followed expert advice and bought a handful of call options — but I’m now underwater, especially on three expiring in mid-September. I didn’t see much guidance to sell until it was almost too late. Is there a smarter way to manage timing and stop losses on calls? – Embarrassed Investor

First, thank you for your honesty and for being a loyal reader. And don’t be embarrassed. Options are tricky even for professionals, and the learning curve is steep. You’re not alone in this.

Here’s what I’d offer:

With call options, time is your enemy. Unlike stocks, which can be held indefinitely, options lose value as they approach expiration – especially if they’re out of the money. That’s called time decay, and it accelerates in the final 30 days.

A simple rule I follow: If an option isn’t working by 30–45 days out, I reevaluate. If it’s underwater and the thesis hasn’t played out, I often take the loss and move on. Waiting for a miracle in the final days rarely works.

The last thing I’ll say: I don’t know exactly which positions you’re in, but if you’re underwater on calls during one of the strongest market rallies in years, that’s a red flag. In that case, selling and preserving capital may be the smartest move.

I hope this helps.

I saw the recent Barron’s article suggesting Fannie Mae might remain in receivership, which could hurt outside shareholders. I originally bought FNMA on your recommendation but sold at a loss. I’ve been thinking about getting back in but now I’m hesitant. Have Bill Pulte’s recent comments changed your view? – Wick

Thanks for the question, Wick. I get where you’re coming from. FNMA is one of the trickiest positions I hold, precisely because it’s not driven by fundamentals… it’s driven by politics.

Yes, I read the Barron’s piece. And no, my thesis hasn’t changed. In fact, recent developments – from Trump’s Truth Social posts to this week’s private White House meetings with CEOs from JPMorgan, Goldman, and Wells Fargo – suggest the administration is actively weighing the next chapter for Fannie and Freddie.

Pulte’s comments were more nuanced than bearish. He said conservatorship might continue, but also acknowledged the president is looking at ways to take the companies public – even partially. That’s consistent with what we already knew: there’s no clear timeline, but there’s clearly movement behind the scenes.

FNMA remains a speculative, high-upside trade. That’s why it’s in my Million Mission portfolio, which is designed to swing big. If that doesn't match your risk tolerance or timeline, it's okay to sit on the sidelines.

But for me? I’m still holding.

I just read about an initial offering for Pacaso. Have you heard of this company? Is this legit? – Cathy

Hi Cathy, the company hasn’t filed an S-1 yet which is the key document to watch. A Form S-1 is the official registration statement a company files with the SEC when it plans to go public. It includes detailed financials, risk factors, business strategy, and how much money they plan to raise. Until that’s filed, there’s no way to fully evaluate the investment opportunity.

That said, the company has reserved the ticker symbol PCSO, which is a positive sign. It suggests they're preparing to go public.

For now, we wait for the S-1. Once it’s filed, we’ll be able to dig into the numbers and see if it’s worth putting money behind. Stay tuned.

Important Update: Follow The Million Mission on Twitter/X

Big news: I just launched a Twitter/X account so you can follow along with The Million Mission in real time. If you want quicker insights, early reactions to breaking news, and a closer look at how I’m navigating the road to $1 million – this is where I’ll be.

Come hang out, ask questions, and follow the Mission as it happens @DavisPWilson.

Another Important Update: ​​The Million Mission website is live!

I’ve gotten plenty of feedback regarding where to find previous alerts. Well, The Million Mission website is finally live and you can check out archived alerts here.

Portfolio Overview

Here’s what I’m currently holding in the Million Mission portfolio:

Fannie Mae (FNMA) – 2,500 shares @ $7.25/share.

Figma (FIG) – 50 shares @ $108/share

Special Shoutouts

A special shoutout to the plenty of people who sent in emails this week. I truly appreciate the kind words and thoughtful comments.

Please keep the emails coming.