Prior Banker, Hedge Funder & CFO. Investor on YouTube. Looking for exceptional companies & UNRIVALED investments.
United States
Joined February 2012
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Tough day in the market? Remember:
A falling stock price doesn't necessarily mean a business is worth less.
But a lower price doesn't automatically mean a bargain.
Investing is about separating changes in price from changes in value.
That's where opportunity lives.
$GOOG plummeting ~9% after-hours as growth disappoints (yet Cloud sales up 100%+!) and cash burn accelerates... They're all in on AI...
$ANT IPO is a Rorschach test. AI Bulls: Explosive revenue growth, improving margins, and a massive market opportunity. Frontier Lab Skeptics: Enormous compute commitments against uncertain free cash flow, with increasingly complex financing to make it all work.
For $ANT IPO, I find it astonishing that 5-7% of Anthropic's revenue came from customers violating its usage policies or commercial terms. How durable is your competitive advantage when you're helping train your competition?
With $META down 7% today (losing $100bn+ in market cap) I think it's important to separate out "earnings" from "everything else". In this case I'd say nearly 100% of the decline is the "everything else" bucket which includes the shock disclosure that they'll need to raise hundreds of billions in new capital!
OPENAI SEEKS $1.4 TRILLION VALUATION AHEAD OF ANTHROPIC IPO
OpenAI is reportedly racing to raise $30 billion at a valuation exceeding $1.4 trillion before Anthropic’s expected November IPO.
SoftBank and MGX are among potential investors.
OpenAI reportedly claims $50 billion in annualized revenue, targeting $70 billion by year-end.
Every so often the music stops. When it does, Mr. Market stops paying for the story and asks a simpler question: can this business fund itself and keep growing when conditions get tougher?
Today, tougher means higher rates and higher energy costs. For the AI buildout, it also means lining up hundreds of billions in financing.
Despite their strong execution, it seems like a big part of why $SOFI has come under pressure is the changing interest rate environment. Do you think the recent jump in interest rates is fully priced in or more pain to come for the stock?
For more, please see my free course on how to find potential multi-baggers: unrivaledinvesting.com/4x
Would you buy $OSCR today, wait for a pullback or avoid entirely? Hyper-growth and seemingly a cheap forward valuation but with very real risks...
UNRIVALED INVESTING retweeted
MUST WATCH: Captain Smit Machchhar, the FlyDubai pilot who saved the lives of 174 passengers after being stabbed by his copilot, did a video call with India PM Narendra Modi.
0:43 Modi: "We Indians are not people who take lives. We are people who save lives."
1:03 Modi: "In that moment, you didn't care about your own life. You cared about the lives of all the passengers."
2:18 Machchhar: "In that moment, sir, I was fighting for my life. But there was a moment when I realized: if I didn't do something… Because I had already given up on life. I had taken so many wounds, I was down on the floor. And even then, I said: if I don't get up… I've been flying for 17 years. I've been a captain for the last 11 years. Even with my eyes closed, I can tell what's happening in the plane. When I was down on the floor, I could feel that the plane was going down."
3:00 Machchhar: "And I knew for sure: this is the last push. 'Smit, do it. The door.' That's all it was. And even then, I was still taking blows. I just got it open, sir, and the others came forward. And everyone else had just as big a role in it."
3:21 Machchhar: "I knew I was doing it at the risk of my own life. But at the same time, I also knew I couldn't watch them all die."
4:01 Machchhar: "Now I know that Gd saved me."
8:23 Modi: "Today is Gandhi Jayanti [Gandhi's Birthday]. You have lived and shown the world what non-violence is."
Hero.
Billionaire Brad Jacobs AND deep value investor Michael Burry are betting on $QXO. Bargain or too much debt?
Yes higher interest rates can act like tougher gravity pulling the valuation lower on many stocks, but some companies might actually benefit....
