$35 BILLION LESSON: No One Is Bigger Than the Market 🤯 — Chip Stocks Are Back? & Amazon Rebound

[00:00:00] Speaker 1: For me, entrepreneurship has always been the way. Investing is important because it's the only way you are going to be able to be rich and wealthy for your family. We can close the wealth gap by working together. Market Monday is the biggest investment show ever. My life has literally changed since watching me at EYL. [00:00:23] Speaker 2: When you can make people money and you can add value, they're going to be forever indebted to you. I promise you this year, I'm going to make all of you more money. Disclaimer, do your own research. Our content is intended to be used and must be used for informational purposes only. It's very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with or independently research and verify any information that you find on our show and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Let's build our knowledge, our community, and our brokerage accounts. Love is love. Love is love. Love is love. What's up? What's up? [00:01:06] Speaker 1: What's the deal, y'all? [00:01:07] Speaker 2: What's up? What's up? What's the deal, man? We are here. We are live. Blessed to be here. Need an encore, y'all. [00:01:14] Speaker 1: Y'all should welcome me back. [00:01:16] Speaker 2: Blessed that you are here with us. It's that time of year. [00:01:20] Speaker 1: It's that time. It's that time of year. Happy and best fast week to those that celebrate. [00:01:24] Speaker 2: Please. We appreciate you all. [00:01:25] Speaker 1: Only the faithful. [00:01:28] Speaker 2: The faithful like San Francisco. [00:01:30] Speaker 1: Oh, man. We got a lot to talk about. Happy belated birthday to the brother, Ian. Yes. Ian, happy birthday, my brother. Yeah, man. Ian will not be joining us tonight. [00:01:41] Speaker 2: He's fine, y'all. [00:01:42] Speaker 1: He's still on his vibe. [00:01:43] Speaker 2: He's fine. He's good. He's in good health. We spoke to him today. But he's gearing up for something very special this weekend. And hopefully, everybody in attendance, you'll be there with your notepads ready, attentive, you know, just soaking in all the information. He's gearing up for something very, very, very, very special. So, shout out to Ian. Happy birthday. 82 babies forever. Yeah, man. We here. We here now. [00:02:09] Speaker 1: We here now. Ian is locked in on his presentation for InvestFest. He's in full-fledged bunker mode. He cannot be reached by cell phone or email. He cannot be reached by cell phone or email. He will not come out of the cave until InvestFest. Well, he's actually going to do blackout. So, we got blackout, 9 o'clock. Ian will be back for that on Wednesday. No Earn Your Leisure this week. We took a no Earn Your Leisure episode. Like I said, this is serious. [00:02:36] Speaker 2: Yeah. [00:02:36] Speaker 1: This year. [00:02:38] Speaker 2: Going to be one that we won't forget. [00:02:41] Speaker 1: Biggest attendee number so far. We'll announce the official number on Wednesday. But biggest attendee situation thus far. Get your ticket to InvestFest. InvestFest.com. We're going to go through the whole list later on. [00:02:53] Speaker 2: But, man, let's get into it. Oh, wait. Whoa. I got to say happy birthday. Mama. Mama love. Happy birthday, mom. Happy birthday. Her birthday is this Wednesday. It's a big birthday. It's 75 years of life, man. And so, you know, just somebody that has obviously guided myself and my brothers and our family in a positive direction. Just been a, you know, a role model by the way she's carried herself throughout the years. Poured nothing but love into herself and her family and obviously those around her. So, mom, happy birthday. 75th. We had a little thing for her on Saturday. Shotty came over, ate all the food. Ate all the food. Yeah, but we gave her a nice surprise. So, happy birthday, mom. We love you. We love you. We love you. [00:03:39] Speaker 1: All right. Let's get into it. Happy birthday. Happy birthday. We may or we may not have a surprise this show. I'm not sure. We may or we may not. [00:03:51] Speaker 2: It's a coin flip. [00:03:52] Speaker 1: It could happen. It might not happen. Stay tuned. Well, let's get into it. Let's get into it. AI chip outlook. It's been so much. And, you know, you talk about this stuff on your class all the time. So, you know, man, take the ball and run with it. Like, you know, what's the deal with the AI chip outlook? A lot of people were super nervous as far as that. We're going to talk about the Leo incident next. [00:04:17] Speaker 2: That's going to be a movie. [00:04:18] Speaker 1: But let's break down this AI chip outlook situation for all the Micron and Sandus holders out there. [00:04:24] Speaker 2: Yeah, I think it's very important to look at the market in its totality, right? If you look at it from the beginning of this year to now, the story is very clear. Like, the demand hasn't changed. And how do we know? Well, we started the month when we looked at TSM and their reporting. And we said that that was going to be important, right? We need to see if from the manufacturing and packaging side, has this story slowed down? Has momentum slowed down? And unequivocally, it was no. It hasn't slowed down from the manufacturing and packaging side. ASML would be in that category. I know they reported back to back. All right. Well, we passed the first hurdle. Now, did the market respond in the manner that we thought? No. But that's okay. We're not thinking from a short-term perspective. Then the hyperscalers came into focus the last couple weeks. And that was an important moment, right? We needed to see if the hyperscalers were going to tell us a different story. Were they painting a new scenario? And we saw Meta and we saw Microsoft. And there was two different tales of what happened last Tuesday. But one thing remained the same in that CapEx was still at the forefront. And it hadn't slowed down, right? Like Meta decided that they were going to spend more. Microsoft said they were going to spend more, but they leaned more toward the lower end of their expectation. And something very key happened. The first time all year, Microsoft decided, hey, not only are we spending more, but we're actually starting to see revenue come back from this CapEx spend, which is very important. So when you look at the Azure growth, and that was the key number I was looking at, have they grown in cloud? And once I saw that the cloud number grew, I knew that this was going to be a story. And we've been talking about it since we were in DC in February about where Microsoft was going to be headed. That was positive. Meta did something very different. You know, they talked about how, you know, it's still going to take some time and it's still going to need a little bit more proving to do. And then we saw Apple and we saw Amazon report. And I'm like, okay, perfect. Demand is still there. CapEx has actually gone up. Amazon is the number one spender. And why has a CapEx been important? Because it tells me money is still out there. They're still spending it. And now it becomes where? So now the infrastructure piece comes back into play. And so if they're spending it, they're saying, look, we have revenue. We're getting it from our cloud service. That tells me that the infrastructure story is still very much in play. And that speaks directly into the AI chip space. And so if we're talking about compute, then we're going to need GPUs. We're going to need CPUs. We're going to need memory. All of the companies we've been talking about all year, there was now a validation. Okay. CapEx is still intact. Memory is still going to be a part of this fold. Semis is still going to be part of the fold. Infrastructure is going to be part of the fold. I know we saw ARM report and they had some really good earnings. The story still remains. Now, did the market respond in a positive way in July? No, it didn't. That's part of the next story, right? And that kind of paints another picture for us in terms of being a very intelligent person versus being a very intelligent investor. So the AI story is here. I know we got AMD reporting tomorrow. We'll talk about that. I'm super excited. I'll be telling you the exact things we need to be looking for. If we're going to be investing in that, NVIDIA will be reporting at the end of the month. So we got some time into that. And then obviously we just saw my Micron report at the end of June. So everything is right in the realm of what we thought it would be. Sandisk is going to be reporting Wednesday, which is going to be a big number, my estimation, as well as Western Digital. So you got the semiconductors reporting. You had the CapEx spend from the hyperscalers reporting. All signs point to, yes, this story is going to continue definitely to the end of this year. And we're talking about maybe sold out into 2027 when we're talking about the memory space. So I'm still bullish and that shouldn't surprise anybody. But based on what we saw from the earnings thus far, all positive on my side. [00:08:27] Speaker 1: So what's your outlook for Micron, Sandisk, ASML, TSM? Yeah. What is the outlook in NVIDIA? [00:08:40] Speaker 2: I'm super bullish on NVIDIA. We actually are in the chat where I'm saying right now, if you look at from a technical standpoint, from a 100-day moving average, from a 72-day moving average, 200, NVIDIA has actually crossed all those in the past couple of days. If anybody's been watching, right, like I think that 400 is sitting at like 192. Today it got to 207, which was a key number to get over. I think that was, it's a 20-day. After it crosses that hurdle, right, the next stop is now going to retest its all-time highs up at 236, which is a nice runway, right? We got three or four weeks before they report, you know, their quarter's earnings. And the reason why we love NVIDIA is because we can see what has happened prior to it. And they get to set the tone and say, all right, look, demand hasn't changed. Look, we're still selling out. Here's our future guidance. Here's what we're doing in terms of Vera Rubin, right? Here's our next generation of GPU. Here's our next partner. Here's who we're also investing in. They're going to have all that at the end of the month. I love it right now, right? Like, I've been trying to just stack calls on it. I see NVIDIA crossing the 250 to 260 mark by the end of the year. That's my outlook for it. And that's conservatively. Would it surprise me if it gets to 270, 280? It wouldn't. But conservatively, I see it finishing the year at 250. And so if that pulls, that means compute pulls. That means Micron will pull as well. So I already said last week, Micron is one of my stories of the year. We touched 1,200, 1,300. I think 1,400 is not a space that was surprising by the end of the year for it. I think Sandus will be in that 2,200 range. Those all-time highs that we touched, I think we'll revisit those probably before the end of the year. And some of those cases will pass it. Same thing with Western Digital. I know 780 or 790 was its all-time high. It's sitting now down in the 580s. So this retracement that we saw in July, a lot of people were like, when should I invest? When is it going to be a good time? We saw some of these companies pull back 30, 40, 50%. What did we do? That'll be the key teller of how we end our year. When we saw the market reset, especially in some of these subsectors that we're in, and I say subsector, because obviously all semis are not created the same, all memories not created the same. And I think that's a very good indication to make. We watched Sandus move. We watched Micron kind of struggle today, right, until it kind of closed above. Well, they're really having a fight with, is high bandwidth memory going to be curtailed by what China's doing? Well, high bandwidth memory is different from NAND memory, which is different from SSD memory, right? These companies are not all created equal, so we have to be mindful of that as well. But those stories are still going to play out. I love TSM. I'm going to go out on a limb here. I think TSM crosses 400 this year. Just from what I've seen from the demand from all these hyperscalers and what I've seen from all the semis, the role that TSM plays. [00:11:41] Speaker 1: You said crosses 500? [00:11:43] Speaker 2: 400. [00:11:44] Speaker 1: TSM? Yeah, it's already. [00:11:46] Speaker 2: Oh, what's the number? [00:11:47] Speaker 1: Is that 406? [00:11:48] Speaker 2: So 450 is the number there, 450. I thought we were sitting at three or nine like we was last week. So 450 will be my number for TSM. Who else you at? ASML? [00:11:58] Speaker 1: Yeah. [00:11:58] Speaker 2: I got to wait on ASML, only because... The news out of China, and we highlighted it last week, it's concerning from a long-term perspective, but I want to see how fast they can get these machines up and running. And the news from TSM in regards to ASML, we reported about this a few months ago, is also something that raises concern for me, where TSM is saying, hey, we're going to slow down on ordering machines. We're going to try to figure out how to scale and build something compatible so we can have more efficiency from the ones that we have. That slows down demand. That's their biggest customer, Samsung number two. So we just got to be mindful of ASML. Definitely still believe in it, but I'm watching that a little bit more carefully. [00:12:39] Speaker 1: Microsoft finally got out of their slumber. Yeah, yeah. Last week, they had a big, big, big, big day. And that was something that we talked about for a long time. Microsoft been sleeping for almost two years now. So a lot of people holding Microsoft, two tech, two index. That was a big day for Microsoft. [00:12:59] Speaker 2: Yeah, again, shout out to everybody that's been on this long journey with Microsoft. I remember being in D.C. and saying, like, we're going to do this 400 call out to August 15th. And just month after month, we were just getting beat up in that call. Actually extended that call out to December of 2028. Just because the story of Microsoft is very clear. You're talking about a leader in terms of market cap. You're talking about a leader in terms of AI. We already know its position with OpenAI and its 20% ownership. But I think one of the things that I kind of highlighted then was we have to really look in depth of what's happening inside the company, right? Like when it got beat up for the last quarter, it was because they saw a pullback in the growth of, you know, their cloud service, Azure. And the reason was because they said, you know what, if we're going to spend, we need to spend internally and we need to build it out even further. So we're going to spend more money to make more money for the long run. And once you understand that picture, then you can kind of figure out, all right, CapEx spend is not just something that they're throwing money away at. They're actually reinvesting it. What happened, obviously, again, is they finally were able to turn profit. And that's important, right? Because not only did that benefit them as a company, right? It was at $400. Now, where are we trading at today? $460, $470, somewhere up there. The reality is that Microsoft year-to-date is up 1%. [00:14:24] Speaker 1: 47. [00:14:26] Speaker 2: And it's up 1% year-to-date. So a lot of people are saying, did we miss it? Did we miss it? It's been an incredible run over the past week since earnings. It's moved 1% this year. So there's so much more room for growth when you're talking about AWS, when you're talking about- [00:14:41] Speaker 1: But it also, it went up $100. I mean, just- This is important. And last month, it was $300. No, last week, it was $381. Now it's $487. So Microsoft has jumped $100 in one week, which is actually historic for his stock. I think it went up 12% last Thursday. [00:15:05] Speaker 2: It had its greatest day of any mega cap company. Ever. One day. Ever. Ever. Right. So I'm saying, if people are thinking they missed the story, if they thought they missed the boat, yeah, you might not have been in those 400 calls that we did in February. You might not have been in the one we did in June. This story is far from over. They're not saying that we're going to slow down spending. No. We actually are starting to see return on our spend. So we're going to figure out how we expedite that even more so. So this story that Microsoft is painting, the co-pilot piece, we obviously know with OpenAI, their partnership with Anthropic. They're very much at the forefront. I think the next piece that we need to watch is the enterprise agent. And that's been like part of the language over the past few weeks is how do we scale this? Well, we can talk about software and then Microsoft got caught in that downward spy where all software gets beat up. You're talking about Palantir. You're talking about ServiceNow. You're talking about Workday. And we'll talk about Palantir later on. Microsoft gets thrown in that because when you think co-pilot, you think software. But there's so many different verticals inside of the business that can generate revenue that it makes it even more attractive. And so that agentic enterprise software, that agentic agent, that's going to be leading the charge. That and cloud service over the next few quarters is what we need to be focused on because Microsoft's story is far from over. I think they just raised the price target to $6.50 by end of year, which gives us tremendous upside. So if you had Microsoft on your watch list, if you had Microsoft on your watch list, if you had it as a stock that you want to get into in 2026, this is that momentum, right? When we follow positive trends, this is a trend. $100 in two weeks is nothing to sneeze at. In three days, really, it's nothing to sneeze at. Can we continue this momentum? I think we can in the next couple of weeks when these semis start to report. Hopefully, it'll carry that win. [00:17:06] Speaker 1: We got the message from HQ that Citadel actually brought a lot of Microsoft stock. And that brings us to this story of Leo. I want you to tell a story and then I'm going to add the animation to it. [00:17:30] Speaker 2: All right. All right. Okay. So let's talk about Leo Bo. I'll put it like this. This is somebody who is super intelligent. Obviously, worked for OpenAI, left the company, decided to create a hedge fund about a year, maybe 18 months ago. But the hedge fund was based on investing in AI infrastructure, the AI story. A lot of energy, a lot of semis are inside that. And the portfolio was, again, started about 18 months. [00:18:01] Speaker 1: Let me tell the story. [00:18:03] Speaker 2: Which one? Which part? Oh, the whole thing? [00:18:05] Speaker 1: Let me just tell the animated part of it. Okay. And then you add the technical part of it. All right. All right. So Leo. So once upon a time, it was a guy named Leo, right? [00:18:13] Speaker 2: Leopold, which I don't even like the name, but that's another story. [00:18:16] Speaker 1: We'll call him Leo. [00:18:17] Speaker 2: All right. [00:18:18] Speaker 1: Super smart dude, but not really a background in finance. Working in OpenAI and starts a hedge fund and really studies the stock market. sees where this thing is going as far as chips are concerned and becomes an overnight sensation as far as investment is concerned, giving you the abbreviated version. Yep. Starts a hedge fund and within like 18 months, grows the hedge fund to $45 billion. [00:18:46] Speaker 2: From $225 million to $45 billion in about a little over 18 months. Here's the companies he invested in. CoreWeave, Nibias, Solaris, Applied Digital, Core Scientific, Bloom Energy, Iron, Micron, SanDisk, just to name a few. [00:19:03] Speaker 1: So his hedge fund was crazy. It was up like 450% over the year. It was just, he was the, everybody wanted to invest with him. He figured it out. He cracked the code for Wall Street and he's invested in all those companies, all of those companies, all of the companies that had crazy run-ups. And he was doing so good in life that he actually decided to get married. [00:19:26] Speaker 2: No, no, no, no, no, no, no, no. He didn't get married though. [00:19:29] Speaker 1: He did? He got married this weekend. I understand that. So that's what I'm saying. So he, he was on a run. He's on a hell of a run. He's a billionaire overnight. His, his portfolio that he's managing is worth almost $50 billion. He's got his investors, 450% over the year. [00:19:48] Speaker 2: Yeah. [00:19:49] Speaker 1: Gets married, sets his wedding to get married. Okay. [00:19:53] Speaker 2: That's fair. [00:19:54] Speaker 1: It's a whole, it's a whole situation. And he even put a, a, a thesis out last month saying like, this is a generational buy opportunity for all of these companies that are, and it's like, man, the biggest gangsters, they all live. It's on Wall Street. That's why I was so fascinated with Wall Street when I was a kid, because I would watch these movies and the way that they would just move like vultures and sharks and piranhas. And it's just so, it's just so like ruthless. So one fatal mistake that he made is that he over leveraged himself. I tell you guys that all the time. He was, he was doing so well that he, he started, he started playing a leverage game. [00:20:33] Speaker 2: He, he made a few mistakes. He made a few mistakes. The leverage game was number one. I think investing in those companies early was the smartest thing he did. He's very intelligent. As he's making the money, he decides to start shorting other positions, right? So when you're short, you're making puts saying that these things are going to depreciate. But you got to realize when you're in this space, especially at that billionaire club, like you're, you're managing that type of money, your, your supporters are watching. But the people who you're taking money from and taking customers from, they're also watching. And I think he might've underestimated that. I, in fact, I definitely know he underestimated that because it's great when you're the golden child and hey, this is a new hedge fund. This kid's 25 years old. He's, you know, the wolf, the real wolf of wall street at this point. The, the old guard is looking at it like, wait, how is he getting these returns? Number one, is he taking our clients? Number two, and how can we stop him? [00:21:30] Speaker 1: Number three, it's like, it's like the AZ9 song back in the days. It's like when we first started, nobody noticed us. Nobody gave a shit, but the bigger we get, the more we're taking from other people. So he starts, he starts to take market share. He starts to leverage. He starts to be very vocal. He has to be taught a lesson. So all of these stocks that he invests in, all of a sudden have historically bad month. Down 35%, down 40%, down 50%, historic drop in the portfolio, which forced- [00:22:09] Speaker 2: Hold on, simultaneously, simultaneously. As the stocks are dropping, the ones that he put shorts on are appreciating, right? So those companies are actually going up in price. So like if you look at a service now, which he shorted, it's going up in price. You look at a Microsoft, going up in price. Again, that software basket, he was shorting it. And so they looked at it and said, all right, well, he's shorting that. And he made that public. Okay, let's go put some capital in there to have those companies rise. So as he's saying like that's going to go down, those companies are going up. And he's putting big bets on this to appreciate, those are coming down drastically. [00:22:47] Speaker 1: So he's losing money left and right. He's losing money. He's losing money because the stocks just keep going down. MU is going down crazy. Sanders is going down crazy. So these are billions of dollars. His portfolio is now in the red. And what happens when you can't lose any more money? The bank wants their money back. So they start calling his margin calls, which forces him to liquidate stocks in mass. And it gets so bad. It gets so bad for him. Within a couple of weeks, last week, he was faced with the predicament that he had to liquidate his whole entire portfolio. And who called him? The godfather Ken. Ken Griffin. [00:23:29] Speaker 2: Yeah, not that Ken Griffin. The real Ken Griffin Griffin. [00:23:33] Speaker 1: Citadel. [00:23:33] Speaker 2: Citadel's Ken Griffin. [00:23:35] Speaker 1: Citadel's Ken Griffin. If you don't know who he is, Google him. [00:23:38] Speaker 2: The one of the wealthiest people on the planet. [00:23:40] Speaker 1: The godfather. [00:23:41] Speaker 2: Last year, he brought in $33 billion. $33 billion. [00:23:46] Speaker 1: The boss of all bosses. He gave him a call. I believe it was Wednesday. [00:23:52] Speaker 2: This happened, yep. [00:23:53] Speaker 1: And said, look, I know that you're in a bad spot right now. I'll buy your entire portfolio. Probably 30% on a dollar. Got a deep discount. Brought his entire portfolio. [00:24:06] Speaker 2: Well, he was allowed to keep some of his portfolio. We got to give him on all fairness. Like 10. Yeah. So he has private investments. He was invested in Anthropic. They allowed him to keep that. But the margin call, and this is why we tell people like, yo, be careful. Don't play with margins. Because when a margin call happens and you don't have that capital, they're going to call you once. And they're not going to call you again. They're just going to start liquidating the portfolio in general. So if you had 10,000 shares or something, you're like, oh, no, I don't want to sell that because I'm trying to hold on to that. I can get the money somewhere. They're going to call you once. They're not calling you again. They're liquidating everything they can to get their money back. [00:24:44] Speaker 1: So what happens? Okay. So he's had a terrible month. His portfolio goes down 40%. The margin calls get called. Ken hits him in the middle of the night. Like, look, I'll take this off your hands because you have to get rid of it. He really has no option at this point in time. They squeezed him out. He had to sell. He sold his, he sold the majority of his whole portfolio to Ken Griffin. And the next day, a historic rally, a historic rally happened the next day. [00:25:14] Speaker 2: I think as the news broke, the rally was happening. That broke like Wednesday morning. And by 930, you just saw a reversal on all these companies. Micron was up 20%. Sandus up 27%. Western Digital up 20%. Coral will be up 14%. Nivea is up 15%. I mean, the timing of it speaks volumes. [00:25:37] Speaker 1: And you know what the craziest part is? It was a week before his wedding. [00:25:43] Speaker 2: A day? Two days. [00:25:44] Speaker 1: He got married this weekend. [00:25:45] Speaker 2: I don't know if he got married this weekend, but the wedding was supposed to be this weekend. [00:25:47] Speaker 1: So, allegedly, Wall Street plotted against him, tanked stocks on purpose, squeezed him out of his position, brought his portfolio for pennies on the dollar, then skyrocketed the stocks back up the very next day. And that he lost his portfolio, he got squeezed out of $35 billion, and the cold part about it was it was two days before the weather. [00:26:16] Speaker 2: Filthy. Now, it's filthy for so many reasons. Obviously, the money, being an intelligent investor here would have helped him out tremendously. But the idea that you want to get into positions, especially from retail investors. We always talk about getting in these investments and a good time, watching the moving averages, checking volume. Imagine at the institutional level, as they're watching a Sandisk get up to $2,200, or they're watching a Micron get up to $1,300, and they weren't big on those stories early on. They're sitting asking themselves the same thing. We're going to get a better price for that. We're going to get a better price for that. In fact, allegedly, we're going to make sure we get a better price for that. This guy has become a golden child. He was big on these stocks. He's run up to $45 billion. We're going to make sure we get better prices. And better prices came in July. Now, we could say it came at his cost, but it came at a lot of our costs. A lot of us are in those Micron costs and have shares. A lot of us are in Sandisk and have those shares. A lot of us, you know, in Blue Manor, we were in these costs, Core Weave. And so, as a retail, we just take the brunt of that. Now, on the flip side, was he wrong in his investment strategy? Partially. The companies were right. They're spot on, right? If they weren't, Citadel wouldn't have came and said, hey, let me get that portfolio. So, they got the portfolio with all those companies at a really good price, and now they have that into the future. He didn't have time because, number one, he had margin. He was way over leveraged, right? And he used margin to get a scaled approach to his investments. But this is the crazy part. As he's selling it, you know what he's doing the same day? Putting out a letter to say, you know what? I'm going to start a new fund, and we're raising capital. I'm like, this is like how the world works. Oh, he coming back. [00:28:12] Speaker 1: It's origin story of a feeling. You fucked me out of $35 billion. I'm going to need my payback. I'm going to need mines. All right. The day before my wedding, no, it's on for life. It's smoke for life now. Now, I'm on a whole different, look, the dude, he's going to be back. He learned his lesson. He learned not to over leverage himself. He learned to probably be a little bit more quiet about his moves. Look, it's a major loss, but he's going to have a comeback because, man, that's the origin. That's the making up origin story right there, man. He got done dirty. He got done really, really, really dirty. [00:28:47] Speaker 2: It's a dirty game, but just know, man, there's always somebody watching your movements. And Citadel, I mean, there's only a few companies, funds that would be able to even take on that level of acquisition. They were one of them, and they struck right when the iron was hot. [00:29:05] Speaker 1: It's the diaper.com story. In many ways, yes. In many ways, yes. We covered the diaper.com story earlier on your leisure. If you remember that, put fire in the chat. If you don't remember it, here's the diaper.com story. There was an upstart company called diaper.com. [00:29:22] Speaker 2: Some of you might remember. [00:29:24] Speaker 1: Who was, you guessed it, selling diapers. Direct to consumer on a website. And it was actually a very profitable business. And it was growing. And it was scaling. And they owned the name, the diaper.com. So Amazon meets with the CEO of diaper.com and offers them to buy them out. And they say, thank you for your offer. We appreciate it. But, you know, we're going to stay the course. We like our autonomy. We want to remain independent. We believe in our mission. No, we're not selling our company. He said, no problem. Thank you for your time and consideration. Amazon starts a revolutionary idea to get products same day. And they call it Amazon Prime. That's why they started Amazon Prime. [00:30:16] Speaker 2: Well, two-day shipping at that point. [00:30:18] Speaker 1: That's why they started Amazon Prime. What they do is, they look at the prices of diapers.com and they cut their prices 30% lower. So they said, we have cheaper diapers and you can get it two times faster. Who's going to say no to that? They lost $100 million a month in diapers. [00:30:44] Speaker 2: Yeah, Amazon. [00:30:45] Speaker 1: Amazon. [00:30:45] Speaker 2: Yeah, intense. Like, look, we're going to lose this. [00:30:49] Speaker 1: Amazon lost $100 million a month. By just doing just that, they lost $100 million a month. Guess what happened? Diaper.com went bankrupt. Belly up. For sale. They fired all their employees, everything. And then Amazon came back. [00:31:11] Speaker 2: Yeah, you want that offer again? [00:31:12] Speaker 1: Took the company damn near for nothing. No, here's what happened. Diaper.com goes belly up. They bought it. They brought the company. The first thing that they do when they buy the company, they dismantle the company and they fire everybody. [00:31:27] Speaker 2: We got the diapers already. We got the e-commerce. That's going great for us. Look, we lost money on it for so long, but guess what? How are you going to get diapers going forward, right? Convenience and efficiency is going to be the way. Even then, this is like early 2000s. But e-commerce, you can see that the world wants convenience and efficiency, right? So if I don't have to go to a store, if I can order something and it can be delivered to my house in an expeditious time, I'm doing that. Especially something like diapers. If you have a kid, if people are having children, they're going to need that, right? So you look at the business, all right, I'm willing to, in the short term, lose money. I have so many different verticals to make money that I can withstand this loss. But I know over the long term, they won't be a competitor anymore. And that's exactly what happened. You're not a competitor anymore. But I think this will be different. [00:32:15] Speaker 1: But that's the same thing. Because I don't think he's going anywhere. Sometimes they'll bleed you out. Like, these people lost money in the stock market as well. Exactly. As everybody was losing money in the stock market, but it's who can withstand? Who has the endurance to still be here at the end of the race? So it's like, look, you losing money in the stock market, we're losing money in the stock market. Everybody's losing money in the stock market. But we know we can withstand this storm. How long can you withstand the storm? They bled him out and they took his portfolio. Essentially the same thing what happened with diapers.com and Amazon. And to this day, when you go on Amazon and you get your one-day, two-day packages from Amazon Prime, you never even thought about where Amazon Prime came from. Now you know. Poordiapers.com. They lost their business and every single employee got fired. [00:33:02] Speaker 2: Yo, it's a dirty game. It's really a dirty game. [00:33:06] Speaker 1: Business. There's no emotions in business. [00:33:08] Speaker 2: I'm just thinking to myself, imagine we had a hedge fund and we show up and we tell our clients, look, we got to liquidate, you know, we lost 30 billion. You think we raising capital the same day? [00:33:22] Speaker 1: I mean, they talking about $250 for an InvestFest ticket. Let alone talking about $200. [00:33:27] Speaker 2: Man, the privilege. The privilege to say, look, I lost that, but look, we raising funds again. We're going to go back at this. We're going to go back at this. [00:33:34] Speaker 1: Oh, let's talk about, since we're talking about InvestFest, let's talk about InvestFest. You know what's so crazy, sidebar, because, you know, it definitely, when people talk about the price of InvestFest, man, I'm just like, yo, the amount of billionaires that we bring three days, but I just want to give people, the Milken Conference, if you've never heard of it, very prestigious conference, business conference. You know, guess how much a standard pass, general admission, guess how much general admission costs to the Milken Conference? You don't believe me? Chad GBT is. How much do you think a standard pass to the Milken Conference costs? [00:34:12] Speaker 2: I know the answer. I know the answer, because that was one of those things that were like, oh, you should attend. If you're in business, if you're in that space, you should go. I'm like, oh, okay. Let me look into that. [00:34:23] Speaker 1: How much does a standard pass, general admission, by the way, general admission, somebody said 10K, a general admission standard pass costs $25,000 to $30,000. [00:34:37] Speaker 2: That's per day. [00:34:42] Speaker 1: Davos, Davos, how much do you think it costs to be an attendee at Davos? World Economic Forum. Annual membership for Davos is $60,000. Attendee fee, typically around $20,000 to $30,000, general admission, by the way. [00:35:13] Speaker 2: And you have to be invited to even spend that. [00:35:17] Speaker 1: General admission. [00:35:18] Speaker 2: You have to be invited. [00:35:19] Speaker 1: Even Greg Cardone was running up and back. His 10X conference, general admission was $997. He was charging $1,000 for general admission for 10X conference. And the crazy thing is, they had an application fee for Moken, I believe it was Moken. You got to apply, $500 to apply. To go. It's actually an application fee of $500. [00:35:44] Speaker 2: Everybody just can't go, right? You got to apply, they got to accept you, and then you got to pay. That's why I said even Davos, when we were there, it was an invite. So it's not like, hey, I got $60,000, I'm going. Not how many people have that as a luxury, but also to be invited. So you have to know the people to know the people to be invited. So when we're there two years in a row, and people are like, well, what are they doing there? Bro, we're trying to see what they're saying, because the people here are making the decisions for the world. I think people just kind of get things misconstrued, like we're just showing up in places. No, we've been invited to do art and journalistic duties to report back to y'all. But, you know. [00:36:23] Speaker 1: So like I said, when you see in Best Fest for $250, it's kind of tough. I don't know. I don't even know what to say after a while, man. You got to really have a perspective of the world to fully be educated, because it's one thing not to be educated. That's okay. There's another thing to be ignorantly boastful with your lack of education. You're not educated, and you just ignorantly boastful. Loud and wrong. Oh, this is a ripoff. This is a scam. This is, this is like, they pocketing the money, pocketing, pocketing $300. It's not going to go too far in this world. Tell you that much. But we're staying positive. Yes. [00:37:04] Speaker 2: I got a message. Keep them positive, Troy. [00:37:07] Speaker 1: Happy and Best Fest week. Let me just do a quick rundown. Please. Let the people know. We have After Party on Saturday. Sunday sold out. After Party on Saturday, you can buy general admission tickets to come to the party, or you can get a table. You can go to investfest.com. There's an After Party tab for that. The LOX event is sold out already. [00:37:28] Speaker 2: Yes. [00:37:29] Speaker 1: VIP night Friday. You will be getting the email. You should have gotten it, but you're getting the email this week. As far as location time and all of that is Black Tie. Please don't play yourself. Author's Corner. We're going to be in the vendor marketplace on Friday signing books, and there'll be authors throughout the whole entire week signing books. Singles Lounge, you will begin an email tomorrow about the Singles Lounge information. Vendor Marketplace, show up and show out. Thursday, registration starts Thursday at 12 o'clock, 12 to 6. If you live in the Great Atlanta region, or if you're there, try to get there early, because there will be over 30,000 people this year. I'll just leave it at that. Yep. So please get there early, please. Man, Friday, we got Equity Now. We got BlackRock. We got American Partners. We got Invesco. We got Miss Business. We got my dad. We got Charles Schwab. We got The Wealth Academy. We got Sueda Pro. We got Vanessa Cole. We got High-Risk World. They're all doing workshops. There's three places where people will receive education on Friday. Podcast Stage, which is inside the vendor marketplace. EYL University Stage. And there's a new place that we've borrowed. [00:38:47] Speaker 2: Georgia Boardroom. [00:38:47] Speaker 1: That is on the second floor. [00:38:49] Speaker 2: Yeah. So right up there. Once, if you're walking in. [00:38:52] Speaker 1: Escalator. [00:38:52] Speaker 2: If you're walking in from the Signia, you go up the escalator once. If you're coming down from where the stage level is, you're going to go up the escalator twice. I mean, there'll be plenty of signage and people directing you. [00:39:05] Speaker 1: Yeah. So that's new. We haven't done that before, but we wanted a bigger room than we had last year. So the other room will be up the escalator. The run of show is on the app. Download the InvestFest app in the app store. The run of show is on the app. I think that's it. [00:39:24] Speaker 2: Yeah. I mean, we're excited. We got the kids on Thursday as well. [00:39:29] Speaker 1: Oh, yeah. Thursday, the kids in InvestFest all day Thursday. Like I said, the locks have been on Thursday. Please, please, please. Registration is from 12 to 6 o'clock on Thursday. You get your badge. You're good for the weekend. You're good. Once you get your badge, everything, you're good. If you can't come Thursday, come Friday. Get your badge. And it starts on Friday. Workshops all day Friday. Panels all day Friday. Strictly education. Like I said, those companies that I just named. Vendor Marketplace all day Friday. Food trucks all day Friday. And then we go on to Saturday. And then we go on to Sunday. Ian Dunlap will be speaking on Sunday. Serena Williams will be speaking on Sunday. Pitch competition will be happening on Sunday. Novogratz, Mike Novogratz, billionaire, will be speaking on Sunday. Yaki Awaken will be speaking on Sunday. [00:40:31] Speaker 2: That's going to be powerful. [00:40:32] Speaker 1: 19 Keys will be giving his solo on Sunday. Stay around for the weekend. Sunday is action-packed. [00:40:41] Speaker 2: Yeah. I'm excited for all of those things. I can't wait to get to the Vendor Marketplace. I love talking to the people who have come for the first time, the vendors who are there for the first time. Because I'll be honest with you. The first time you see that many people, it becomes very overwhelming. But just talking them through it. And then finding people who can help them and guide them through it. So we got some vets. I love all the vets who come with their bands every year, showing that this is their sixth year. We're going to count on y'all to help our newcomers and guide them through it to make this a beautiful experience for everybody, man. I'm looking forward to meeting and greeting and taking as many pictures and smiling and signing. But whatever we got to do for the people, man, this is going to be a big year. And we're looking forward to it. Oh, and real quick, shout out to all my people that are thinking about our health in advance. If you are sick, fist and air is cool. If your palms are sweaty, I appreciate all the sweaty palm people. I love y'all. Y'all know you're my people. Fist bump is good. Just give me the heads up. And I know we want to make sure that everybody is healthy and enjoys the weekend and is fully engaged because, you know, everything is functioning correctly. [00:41:52] Speaker 1: Yeah, we tapped in. So, yeah, we will be signing a book on Friday. Also, you want everybody to come. Whoever can come, there's still tickets available. But if you cannot make it, virtual tickets are for sale now. Yeah. You go to investfest.com. The virtual option is open. Virtual option is open. Right now, virtual option is open. So, man, it's going to be a historic moment. Again, we got some things planned for you guys, man. Over deliver per usual. $30,000, that's the number that we're aiming for. Friday, Saturday, Sunday. You know, if you got good stuff inside of the vendor marketplace, let me know. I'll be walking up in the marketplace. I'm spending money. I'm spending Bitcoin. I'm spending dollars. I'm cash app. I'm doing all of the above. [00:42:41] Speaker 2: Yeah. [00:42:41] Speaker 1: So, if you got some fire. And the last thing I'll say is if you're a content creator or if you're a vendor, collaborate with Earn Your Leisure and InvestFest page. But it got to be fire, though. We can't accept everything. Like, if you're making some dope content throughout the weekend, collab, we're going to try to accept as many collabs as possible so we can help you grow your brand, so we can give you visibility on what you got going on. But be creative. Make it dope so it gets engagement. But, man, it's open source. This whole weekend is going to be open source. It's going to be a lot of money that's being spent with the vendors. It's going to be a bunch of content creators out there, people doing interviews. And this is going to be – that's what it's about. So, don't be shy with your content. We want to see all the content. [00:43:29] Speaker 2: Yeah. I told you, I'm trying to end up in the people folder in your iPhone. Some of the people I've taken pictures with every year, and now I'm a person. You know, like when you go to your photos and you go to people, like I'm in there people. So, I'm just trying to be in more people's phones. So, let's take a picture, let's chat, let's do all the things, let's network, let's build. That's what it's all about, man. It's the family reunion. [00:43:50] Speaker 1: Let's get it. Let's get it. Let's get it. Okay. SEC rules change? You want to talk about that or? [00:43:55] Speaker 2: I think it's kind of like one that we will want to see. I know off the top, man. I think – and I don't know if they'll ever do it, but there are a few people that are trying to. We need to figure out regulations on federal public officials that are investing in the stock market. We have to put some type of limitation or some type of disclosure agreement in place. I mean, when you talk about conflict of interest, when you talk about alleged insider trading, when you talk about people that are making policy and also are investing in the companies that know that the policies are going to benefit, how do we as the everyday retail investor, hardworking person, like how can we compete with that, right? Not only are they buying it, but they're shorting them too. So they're getting out of positions when they know contracts are ending or contract negotiations or they know lawsuits are coming. It's just an unfair advantage that they should – this feels like this should be easy to figure out. [00:44:57] Speaker 1: That's a fact. Well, monitor the situation. I believe if you get a virtual ticket, you can watch it later, right? Is that correct? [00:45:04] Speaker 2: Yeah, yeah, yeah. Yep. Absolutely. [00:45:06] Speaker 1: You don't have to watch it in a moment. You can watch it later. [00:45:08] Speaker 2: Yeah. [00:45:10] Speaker 1: SMH versus DRAM. [00:45:11] Speaker 2: Ooh. Ooh. [00:45:13] Speaker 1: The showdown that everybody wants to know. [00:45:17] Speaker 2: All right. Okay. Love them both. Love them both. If I had to invest in one or the other, I'm going to go with SMH. Not because I don't love DRAM. I do love DRAM. I'm just – the level of concentration that it has in one specific thing makes it a bit riskier. And you can see that right now, right? Like DRAM is down 32% from its highs. Even with the pullback that we saw in July, SMH is down 16%. Now, both are in technically correction territory, but one has doubled in depreciation, right? So DRAM is down 32%, and like I said, SMH is down 60%. Why SMH? Because it's more diversified, okay? SMH is a semiconductor ETF. So it could have NVIDIA. It could have Broadcom. It could have AMD. It could have Texas Instrument. It could also have Micron, which is in that memory sector, whereas DRAM is very specific to the memory component inside of semiconductors. And so DRAM and SK Hynix lead that – I mean, Samsung and SK Hynix lead that. Micron's in there. Samsung's in there. That's specific for memory. Now, we always said, hey, look at the past, and it probably can, you know, give us a good – paint a clear picture for where the future's headed. I don't think this is the cyclical nature that they talked about in the 2000s, and we've gone into that in detail. But I do think at some point – and I don't know if it's in 2027 because I think we're sold out already for 2027. It may not happen in 28, but in maybe 29, 30, that capex spend, right, and the demand will – they'll start to even out. So supply is short. So obviously, they increase prices. But at some point, as they build more factories and more fabs are on, the demand supply will start to even out, and you'll start to see prices even out inside of the memory sector. I don't know if that's going to hold true for SMH and the semiconductors because if it's not going to be NVIDIA, right, it'll be another company. And SMH has, right, they manage it, and they actually allocate and reallocate funds to companies that are moving. They have the flexibility to do that, whereas DROM is kind of isolated in the sense where it's specifically memory. Even now, like I looked inside of SMH, a month ago when we were talking about this, Micron was the number four holding. Today, it's at one, two, three, four, five. It's the number six holding. You got NVIDIA at 21% of the allocation, TSM at 9%, Broadcom at 6%, AMD at 5.6%. ASML is now past Micron inside of SMH. So they're reallocating it. It had a rough July. Doesn't mean we don't believe in it. We still don't love it. It just had a rough July. It's pulled back to some real key numbers on metrics. In terms of exponential moving average, and now it's number six. I would assume as it starts to creep back up, it's in the 900s again, we'll start to see the allocation move up. That's with the flexibility of having a diversified ETF like SMH grants you. [00:48:21] Speaker 1: Yeah. [00:48:21] Speaker 2: What are you taking? [00:48:22] Speaker 1: You know, I made a lot of money with SMH throughout the years. It's just long-term holds and even options, but just, you know, really just piling money to SMH, especially when it was down. So SMH is more broad range. When you look at, you know, the future, you got to, you have to believe in SMH for sure. Drama as well. But, you know, drama is a lot more specific just for the memory space where DRAM is just for memory space. SMH is a safer bet for sure. But, I mean, if all of this plays out correctly, they both should do well. But SMH is where I have way more money in SMH than I have in DRAM. [00:49:05] Speaker 2: Yeah, DRAM, we kind of spoke about it early in April because of the amount that it would cost for people to get into micron shares at the time when they were running up to $700, $800 a share, not eventually up to $1,300 a share. Saying just the same thing, right? We talked about it last November when it was $190 a share and it got up to $220 and it just kind of hasn't stopped that parabolic move up to, you know, $2,300, I speak. And so what would be a way for us to have some exposure to it? Well, here's this ETF that can give us some exposure. And so that's kind of why we looked at DRAM was like, how can we have exposure to the memory sector without paying the type of prices that are just so astronomical that it's tough to build a real foundation? Meaning, can I buy five shares? Can I buy 10 shares? Well, if I'm spending $2,300 per share, that becomes kind of a tough fee. And so DRAM, number one, the affordability of those calls was there, but the affordability of the actual shares of the ETF, we're trading at $27, $30. I know a lot of people in the $35, $36 range. So that's why we kind of had that exposure. It'll be here for a while. I don't think DRAM's going anywhere and for the near future. So, yeah, long-term estimation, though. [00:50:19] Speaker 1: Shout out to Edwin, real one. [00:50:22] Speaker 2: The legend. [00:50:22] Speaker 1: Shout out to Ken. [00:50:24] Speaker 2: Legend, spoke to him today. [00:50:25] Speaker 1: Detroit crew. [00:50:27] Speaker 2: Yeah, spoke to him today. [00:50:28] Speaker 1: Man, shout out to everybody that's been showing love from the beginning and still here, man. Salute. Salute. Appreciate you all. Okay. Okay. Let's talk. We will be answering questions from the audience at some point, but let's talk about the most underrated stock. [00:50:48] Speaker 2: All right. So my most underrated. Now, it's crazy because they went ridiculous over the past week, but I think Microsoft is still one of my most underrated stocks. I think people don't really understand. I think people don't really understand the sources of revenue that they have, the infrastructure that they have, how well the companies run, the management that's running the company, the CEO is phenomenal. Yes, it has been, you know, it's traded kind of sideways for two years, but I still think the fact that they have the co-pilot right now, we're talking about enterprise software that leaves the door open for enterprise agents. The fact that the cloud business is growing, they're showing that we can have a capex that is pretty high, but we're spending it because the expected revenue in the future is going to be exponential. And so looking at the level that it's at, like I said, it's had a 1% move over the year. I still think there's so much growth. I still think it's being underestimated. It's kind of unfairly been put in the software category. We're seeing a breakout now, but I think the run is primed for a nice run to the end of the year. It would be one of my most underrated because of the position that it has in terms of market cap, all the things that it has going in its favor, the momentum that it's carrying right now. I think it would be in my top, top two for sure. [00:52:19] Speaker 1: Well, who do you guys think is the most underrated stock? Put in chat. Who do you think is the most underrated stock that nobody's really talking about or people are not really paying too much attention to right now? Let me see what the audience has to say about this. [00:52:33] Speaker 2: Oh, yeah, let's do it. Let's run it. [00:52:34] Speaker 1: Somebody says Block. [00:52:36] Speaker 2: Okay. [00:52:37] Speaker 1: Block is a sleeper. [00:52:39] Speaker 2: Yeah. We had a, I was in a chat today and they were, they were talking about SoFi. [00:52:43] Speaker 1: Now? Service now? [00:52:44] Speaker 2: Well, hold on. Let's talk about Service Now. [00:52:46] Speaker 1: No, we can do that. [00:52:48] Speaker 2: So, and shout out to my brother Ian. We went back and forth a few months ago about Service Now. And when I looked at the fundamentals, I'm always looking for pullbacks. So, the first thing I'm looking for, where is this stock headed? Where was this all-time high? And if we look at it, I mean, the rundown has been equally as hyperbolic. We got under this 400-day. It's been under this 200-day. And then you start to figure out, what is the story really? We went over that five-layer cake. We talked about the models. We talked about infrastructure. But at the top, we talked about applications. And so, if we have the energy, if we have the infrastructure, if we're building the models and the applications, who's going to benefit? And from an enterprise standpoint, Service Now is at the forefront of it. So, and shout out to everybody in EYLU. You know, we put a case study up on Service Now. The next week, Jensen gets on stage at GTC and says, look, I don't know what everybody's thinking. But if we're talking about enterprise software, Service Now is going to lead the future. All right, validating moment. Now, you look at the past few weeks, software. And I feel like software and hardware have been going back and forth. Either you're having a positive day in the software companies, the work days, the Service Nows. Microsoft was in that at that point. Even Oracle, to a certain extent, Salesforce has had, I mean, just terrible runs. But they've had some decent days. And then when they're appreciating and you see the microns and the standards pull down. And when those dealt, it was kind of going back and forth until Service Now is now part of the software story. So, why, again, the Microsoft piece is so important? Just because they're saying, look, we're starting to show you revenue. Here's revenue. I know everybody's worried about the CapEx spend. Everybody's talking about the circular economy. Here's revenue. So much so that, and we'll talk about the next company, Amazon, their earnings report gets tied into that. So, Service Now, again, fundamentally, McDermott is a really solid CEO in terms of application to AI. They're going to be at the forefront when it comes to enterprise. I'm glad somebody said that. That would be a definite sleeper. We've been talking about it. Definitely, if it's not on your watch list, put it there. It will be here. The Godfather has spoken. Shout out to Jensen. Who you got? You got anything? You got one? [00:55:08] Speaker 1: I want to see what everybody's talking about. I want to see what they're talking about. Somebody said Walmart, Nokia. [00:55:15] Speaker 2: Oh, somebody put Generac in the chat. [00:55:16] Speaker 1: Meta. Arm. [00:55:19] Speaker 2: Arm is, we cover Arm. Lamb Research, if you don't have that. ACLA. All these stories that are happening. I mean, there's so many companies. It's like, do we want to just keep them on our watch list? Do we want to add them to our portfolio? [00:55:34] Speaker 1: Bitcoin. [00:55:36] Speaker 2: They're talking to you. [00:55:38] Speaker 1: Netflix. Adobe. Western Digital. [00:55:43] Speaker 2: Okla is a good one. I see that when we're talking about energy. CEG. So, that was one of those things. I couldn't figure out which energy company. I told you my favorite was GEV. Obviously, Caterpillar was in there. And so, I was like, let me just find the ETF that has a bunch of them. And so, I did the XLU utilities because those are inside there. But there are some other great ETFs that have energy and utilities in them. Yeah. I mean, we got them. We got Hood. Power Alto. Visa's a good one. Visa's a really good one. Roblox got beat up. Troy does not believe in Bitcoin. Why y'all say that? I believe in it. I believe in it. I believe in it. Should we talk about the other ones? The Ristas of the world. Vertiv. I mean, we've covered them. I feel like those have been the sleepers that we've been talking about. And the fact that the market has now caught up to them. It's like, oh, they understand the story. Vertiv was in that category. Celestica was in that category. Fortinet was in that category. Lomentum, Coherent. All those are in there. And they've pulled back to some really, really solid levels. And that story is going to get played out. We talked about how Photonics is going to be a thing of the future. And of the near future. Those companies have gotten to some really nice levels. [00:57:01] Speaker 1: Okay. Let's talk about InvestFest. What's your favorite moment that you're looking forward to? I'll say this. If you guys, you'll be doing yourself a tremendous disservice if you don't see John Morgan speak. The panel that he's on is right before lunch on Saturday. John Morgan is Tashonda Duckett and it's Lewis Carr. Tashonda Brown Duckett is the only black woman that's a CEO of a Fortune 100 company. John Morgan is a billionaire. He's the richest lawyer in America. And Lewis Carr is the president of BET. And Romain Bostic is doing that. Shout out to Romain. He's an anchor at Bloomberg. Man, you'll be doing a tremendous disservice if you don't watch that conversation happen. John Morgan went viral. Spiritual Word just posted him yesterday. Like, shout out to Sean Spiritual Word. That guy's a genius. That guy's a genius. And to have that level of access to a real billionaire in real life, man, I think you're doing yourself a tremendous disservice. Seven Stream, shout out to my boy, Derek Falcon. [00:58:17] Speaker 2: Yeah, I was just with him. [00:58:19] Speaker 1: He's going to be interviewed by Jim Jones. It's called The Hustler's Ambition. That's on a Sunday. That's going to be one of them ones. We got a nine to five entrepreneurship panel. For everybody that's working a nine to five, trying to figure it out, these people that actually did it in real life and became millionaires in entrepreneurship. Man, Ian Dunlap going to touch that stage. Serious. I'm looking at all the joints. Serena Williams, the great legend. Serena Williams, 23 grand slams, 16 unicorns, arguably the greatest female athlete ever. Greatest tennis player ever. Goat. People use the word goat very loosely these days, but she's actually the goat, literally. Man, Julian Brown. I was going to say that. I'm looking forward to that. He's going to do what he does. Yaki Awaken. Yeah, you're going to take him on, man. Yaki Awaken. [00:59:14] Speaker 2: Alicia Little. [00:59:15] Speaker 1: High level conversation. We know that. That delivers every year. With Van Lathan and Vic Mensah. [00:59:21] Speaker 2: I was just going to say, I'm looking forward to Vic. Yaki is somebody I'm looking forward to seeing as well. Bernard. We just kind of just like. [00:59:29] Speaker 1: Dan Fleischman. [00:59:30] Speaker 2: That's what I'm saying. Dan Fleischman. That conversation. You're talking about non-figure businesses. Nicole is hosting that, who's just a brilliant person in the world of finance. Obviously, in podcasting, too. She's one of the top hosts to do it, man. Her show is incredible. We've been a guest on her show. Having her there is going to be dope. Ian, I'm sure, you know, is going to put on a magnificent performance. I'm looking forward to my guy. Shout out to Just and Tunde. I talked to them today, man. And they're having a conversation about the new generation of music, man, which is dope. I'm definitely going to be in there for that. Miss Business is going to put on. She kicked off last year, which was incredible. [01:00:11] Speaker 1: Joey Badass and Saraya. [01:00:13] Speaker 2: I mean, there's so much going on. [01:00:15] Speaker 1: Talk about being a couple. And then all day Friday, the Black Rocks, the Fidelity, the you name it, the Invesco, QQQ, Invesco. Had a diversifier, a 401k portfolio. Shout out to my boy Jarrell Dinkins. He's going to touch that stage on Friday. Talk about the Airbnb game. [01:00:34] Speaker 2: We are contractually obligated to say, you know, shout out to your pops, man. Come on. We're going to that. [01:00:39] Speaker 1: All right, for sure. [01:00:41] Speaker 2: I'm looking forward to that, man. [01:00:43] Speaker 1: We got the preachers coming for the Christian entrepreneurs. We done touched every angle. We done got the Christian entrepreneurs. We done got the military veteran. We done got the African panel for the Pan-Africans. We done touched everything you could possibly think of. [01:01:06] Speaker 2: More to come. [01:01:07] Speaker 1: What more can we do? More to come. What more can we do? [01:01:13] Speaker 2: Go bigger, go bigger. You know, that's how we're planning. [01:01:16] Speaker 1: Amazon, the time has come. [01:01:19] Speaker 2: Amazon. [01:01:20] Speaker 1: Amazon market rebound. [01:01:22] Speaker 2: Yeah, man. Amazon, yeah, I know that's historically my favorite company just because the amount of revenue streams that they bring. We talked about the dark side of business when we talked about divers.com. But Amazon, man, that quarter was tremendous. They did $200 billion. Think about this. Last quarter, they did $200 billion in revenue. $200 billion. There's companies that aren't even worth $200 billion. A lot of companies aren't worth that much. They did $200 billion in revenue. Earnings per share was a huge beat. I mean, $575. They were, the estimate was $1.82. They were at $575. AWS. Now, this is important. And that's why I said the Microsoft piece is important. When I was sitting there waiting for Amazon to report, I knew that the market was thinking, where is the CapEx spend going? Because if we look at historically, who was the biggest spender in terms of CapEx, it has been Amazon. They make no secret about it, right? Shout out to Jassy. They went from spending $150 billion to $170 billion to now saying that they're going to spend $205 to $215 billion on CapEx by the end of the year, which is a large increase. However, and this is why it's important to listen to these CEO calls after their earnings report. When we listen to Microsoft and we watch them say, hey, we're seeing an uptick in demand for cloud service. I said, okay, cool. What did I hear the week before when Google reported? Now, we talked about them having a negative CapEx spend. I'm like, okay, what did grow? Oh, the cloud business grew again. So Google Cloud grew. That's the number three provider. Microsoft Azure, they grew, the number two provider. In my mind, I'm thinking, okay, if number two grew in cloud business, number three grew in cloud business, what is number one potentially going to do? And just as I suspected, their cloud business grew again. So AWS grew to $42 billion in this quarter. They estimated it at $40. And so now you're starting to see the momentum change a little bit. I know for those who've been in Amazon, it has been a long journey and it has been a really, really disciplined journey. If you've ever owned a stock, if you've ever traded calls on it, it's a love-hate relationship. And so I decided that I'm not going to have the love-hate relationship. I'm just going to own shares. But we're starting to see a shift, right? That shift of, hey, it isn't just capex spend anymore. We're starting to see a return on that investment. Remember when we talked about the house and the construction company? Well, now that house is starting to come to fruition and they're starting to make money as they're building. And so that was a bright spot. We've seen it get to its all-time high. It hit $3 trillion for the first time. It's a $3 trillion market cap. Incredible. Amazon is not done because as the capex spend continues to go up and they continue to show that they're going to have more revenue, we're going to see some more, some more really strong quarters from them. [01:04:35] Speaker 1: Okay. AMD. AMD is another one that, you know, people have a lot of questions about. This show today, we're just going to try to answer as many questions as possible. For all the stocks, you know, we just try and give as much value as we possibly can, leading up to InvestFest. A lot of people have been asking questions about their stock portfolio because they've been down. So that's why today we're just trying to just go over individual stocks as much as we possibly can so you guys can have some reassurance on your plans going into the fourth quarter. So I know AMD is a stock that a lot of people make money on. So AMD. [01:05:08] Speaker 2: Somebody said, Troy, do you have a pool? AMD, man. Yo, shout out to all the AMD warriors, man. Put a fire in the chat if you've been in this AMD journey with us. Man, AMD is a phenomenal company. Shout out to Lisa Su and the entire leadership team. They have really turned this company around. In fact, you know what? They really stayed stern on their vision for the company, right? When people were doubting it, they said, hey, you know, GPUs, NVIDIA owns it. They were like, okay, well, we're going to create something very different. And so my expectations for AMD is I think they're going to have another solid quarter. I think that they'll be across the metrics. The key thing that I'll be looking for is what does the GPU revenue look like, right? Because we know that the market share is owned by NVIDIA. They were at like 12%. It got down to 10%. At its peak, it's been like a 14% market share of the GPU market. I want to see what that looks like. But I also want to see what the CPU market looks like, right? At a time when Intel was kind of asleep at the wheel, AMD came in and swept in and took the CPU market. Intel is obviously now, you know, partnered with the government in terms of manufacturing and putting out GPUs, CPUs. And so they're back in the fold. We're going to get some more details on the M1350 chip that they put out. But I think this is an important piece. I want you to write this down. Helios, H-E-L-I-O-S. This is a game changer for them. This is a new product for them in terms of AMD. This is not just a GPU anymore. This is a stack, an AI stack. So they're not just saying, hey, we're selling you GPUs. They're actually selling stacks. And Helios is the name of it. So we'll see, number one, what the demand looks like for that. And number two, how fast is that product going to get out to the public? So we got to look for that. And then we'll look at the hyperscale commitments. We saw hyperscale as partner. We talked about NVIDIA and Hynix. We talked about Samsung and Broadcom. Who is AMD going to partner with now? We already saw that OpenAI was one of their partners. Are they going to be adding to that? All these things are key things that we're going to be looking for. I think they beat. I think depending on what the future guidance is for this and all those metrics we just named, we'll see an uptick. I know right before you usually see like, hey, options market will say we're predicting a 6% move, either negative or positive. I think it'll probably fall somewhere in that range. But I like AMD here. I like it long term. It's one of my foundational pieces, meaning that I got over 500 shares of it. Obviously, we got some calls. So I'm looking forward to that one. That helps the story for semiconductors. So that will be a big one on Tuesday. And that'll lead into the ones on Wednesday when we talk about memory and Western Digital and Sanders. [01:07:56] Speaker 1: Shout out to AMD. Shout out to Dave Shands. I forgot the panel. Steve Harvey and Nick Cannon. Yeah, yeah, yeah. Man, that's generational comedy. That's generational empires. Nick Cannon, one of the illest to ever do it. Man, when you look at his empire that he's built with Wild'n Out, it says billion. That's actually valued at a billion dollars. The Wild'n Out empire is crazy. And then all of the things that he's done, America's Got Talent, from the movies to the comic series, you know, 85 South, they kind of come from under his tree. Kehlani was actually sleeping on his couch. He was like Kehlani's early manager. [01:08:35] Speaker 2: He allowed her to come live with him, use his studio. That's not the only thing, though. I do the Kehlani story. I didn't know the her story. So Nick Cannon was pivotal in getting her to become what she is inside of the music industry. They were actually in the same group. So it was Kehlani and her in the same group when they were younger. But Nick Cannon had them, you know, allowed them to use the equipment, allowed them to understand music, told them about the business. And you have two of the, you know, the most, like, dynamic talents for this generation, for sure, and Kehlani and her. Love them both. But Nick played a vital part in that journey, man. Incredible dude. [01:09:13] Speaker 1: He wanted them on. He definitely is. That's going to be, and it's him and Steve Harvey together, hosted by Terrence J. So that's going to be a hilarious panel, but it's going to be full of information. Oh, the mask. [01:09:27] Speaker 2: You forgot the mask. You watch that show? Yeah, yeah, for sure. He's the king of those shows, man. [01:09:31] Speaker 1: He made a lot of money. Nick Cannon made a lot of money on these shows. And Steve Harvey, obviously, the empire that he's built. So it's going to be interesting. That's going to be, that's a keynote for sure on Saturday. That's the keynote moment on Saturday. [01:09:46] Speaker 2: Yeah, Jell-O. Jell-O says, should I exercise my $3.75 Microsoft call to get shares or will it? I see another pullback. No, you're not exercising at that number. When you're talking about exercising contracts, you want to talk about large gaps in strike price to current value. So an example would be if Microsoft is trading at $484, if you had calls that were like $40, $50, somewhere like the range is so wide that you can't see it getting back to that strike price, then you might want to entertain it. $3.75 is not a number, right? Because now you've got to have 100 shares at that price. So think about the math on that, right? So I wouldn't do that. I would not recommend that. If you're up and you're in profit, you made your 100%, take your initial out. Let's see how many contracts you got. You let it run, depending on your expiration date. But I'm not exercising at those numbers. Good question, though. [01:10:39] Speaker 1: Shout out to the city of Atlanta. It's been a lot of controversy. [01:10:45] Speaker 2: Keep it positive. [01:10:46] Speaker 1: But, you know, diplomatic diplomacy has been working behind the scenes. [01:10:54] Speaker 2: Yes. [01:10:55] Speaker 1: We are diplomats at the end of the day. [01:10:57] Speaker 2: Yes. Despite what you hear. [01:10:58] Speaker 1: And distinguished gentlemen. [01:11:00] Speaker 2: And despite some of the things that have been posted on social media, we are in a good space. We have had some conversations. And we will remain diplomatic. We love the city. And that's evident. And we're going to show the city how much we love them. [01:11:18] Speaker 1: Yeah, you know, it's a lot of diplomacy. It's a lot of diplomacy. I'm sure you'll see some positive things happen. [01:11:26] Speaker 2: Yeah. It's only fitting. It's only right. [01:11:29] Speaker 1: It's only fitting. It's only right. It's only right. It's only fitting. Yes, sir. The right way. Yes, sir. Are you not entertained? It's only entertainment. It's only entertainment. [01:11:51] Speaker 2: No, no. At least Tuesday, Ian. At least Tuesday. At least Tuesday. [01:11:56] Speaker 1: What did he say? I don't know what it is. It's provocative. [01:12:00] Speaker 2: It gets the people going. [01:12:02] Speaker 1: It gets the people going. [01:12:05] Speaker 2: Man. [01:12:06] Speaker 1: What a press run. [01:12:08] Speaker 2: They said, can they get an option play? [01:12:10] Speaker 1: What a press run. Option play? [01:12:11] Speaker 2: They want one that I'm doing now. What have I done lately? I'll check. Let me look at the portfolio, and then I'll get you something before the end of the night. Nah, nah. Maybe. I'll tell you what I'm looking at. How's that? I'll tell you what I'm looking at. That's fair? That's fair. [01:12:29] Speaker 1: Ian is out tonight. You know, he had a lot going on. He's preparing. He's in the back. He's preparing for his vest fest. Had a birthday. So, you know, we're holding it down for him in his absence, but he's here in spirit. The band is not in danger of breaking up. Please, don't make your think pieces affiliate. The affiliate. I don't want to see a 12-minute YouTube video about the internal wars between EYL and Ian Dunlap. Ian misses the show. The band will be back together next week. The band will be back together this week. Actually, don't ever play yourself. Don't ever play yourself. Feds. The Fed. The Fed. The Fed versus earnings. The Fed versus earnings. And this earnings thing is, once again, this is why I say I don't like playing short-term options or trades or a variety of different things and earnings because what we've seen and we saw this happen with NVIDIA and we saw this happen with Micron. And we saw this happen with a variety of different companies where they blow out their earnings. In Micron's case, arguably one of the best earnings reports ever in history. And then it goes down 35% in the next month. So it's like the earnings. Wall Street has become so much of a casino. And since these people are taking the stock on purpose, it has nothing to do with the earnings. It has nothing to do with how good the company has performed, future guidance, none of that. [01:14:10] Speaker 2: Yeah. [01:14:11] Speaker 1: So when you play those short-term earnings calls, you put yourself in danger of losing a lot of money because you're thinking, okay, if they got a great earnings call, the stock is going to go up. No, not necessarily. And then the one time where you say, okay, I'm going to bet against the stock, then the stock goes up. So you essentially are gambling. That's my opinion. If you play earnings, it's no different than going to Las Vegas and just putting your money on black and red at this point in time. You're just gambling. [01:14:37] Speaker 2: What if you got leverage? [01:14:40] Speaker 1: Leverage for what? [01:14:40] Speaker 2: I mean, you got a foundational position in those companies. [01:14:43] Speaker 1: You're still gambling. It's like, all right, you could do a small gamble. You could do a big gamble. A gamble is still a gamble. [01:14:51] Speaker 2: I don't know if it's a gamble. [01:14:54] Speaker 1: How is it not a gamble when it- [01:14:56] Speaker 2: I'm not recommending it. I'm saying this. I'm saying it's not a gamble in the sense that- Is it more predictive? Maybe. Are you assuming based on actual data? Yeah. Can you predict what the market's reaction is going to be? That part you can't. Now, I'm not saying you're doing date option trades. No, you shouldn't be doing that. Maybe you shouldn't even be doing weekly. Especially if you don't have shares. Especially if you don't own any ETFs. Like, that shouldn't be your first thing you're doing in terms of investing. Like, you should not be doing weekly calls if you don't own shares. If you don't have a foundation, then you should not be participating. What I'm saying is like, if you have leverage in the terms of like, we have a thousand Nvidia shares. We have a December 28 call. We have a December 27 call. We have a December 26 call. We've actually stacked it. If you're doing this and you're- Obviously, you wouldn't play it out. So like, let's say Nvidia reported Wednesday. Are you making a call to Friday? No. But would you do one until September? Based on the catalyst events? Because those catalyst events are important. And here's how we know. [01:16:05] Speaker 1: So let me ask you a question. [01:16:06] Speaker 2: No, let me just finish this example. When we did the mastermind in DC. This is a prime example. Microsoft was going to have an earnings call. And we priced that in. We said, look, we're going to give it two cycles. We're going to have two earnings cycles for it to either show and prove or not. And then we can see if we're going to go out even further. We started out further. We already have the shares. First earnings cycle, we sold what happened to Microsoft. This earnings cycle, rebound for Microsoft. The 400 called was down probably 50%, right? Got down to 356 on the equity itself. Now we see it up at 484. That life cycle, we've invested in it, but we put in some catalyst events that we know are going to happen. I'll give another example of Sandus. Like this week, Sandus has two catalyst events in the next 10 days, right? So like, are we long-term with Sandus? For sure. Out to January 28th. Y'all seen the portfolio. UIL, y'all already know. We got September of this year. We got December of this year. What are the two catalyst events? We have earnings on Wednesday, but then we have investor day on the 13th next week. So there's two catalyst events. So if somebody's looking at this and they're saying, I can't afford it. I mean, these premiums aren't cheap. But like, you bake some of these catalyst events in when you're doing that. So that's why I say it's not a game. There are characteristics, yes. If somebody's doing it on a daily, for sure. [01:17:36] Speaker 1: Shout out to PJ Kev on the check-in. [01:17:41] Speaker 2: Yo, Kev, I love you, bro. Shout out to PJ Kev. The CBOE knows this now, which is interesting. So now I could buy an expiration date for the 5th. I could buy an expiration date for the 7th. It's like, it's crazy. Like they're having two-day calls now. [01:17:55] Speaker 1: Okay, but let's do this. [01:17:56] Speaker 2: Yeah, go. [01:17:57] Speaker 1: If you are investing or trading a stock in the short term for the anticipation that it may go up or it may not go up, how is that not gambling? Because like I said, it's not based on any logic, fundamentals, fundamental analysis, technique. If it's not based on fundamental analysis and it's not based on technical analysis and it's strictly based on speculation, that's what these earning reports have turned into. Some of them. A lot of them. Speculation. They've taken technical analysis because if technical analysis and fundamental analysis meant anything, we wouldn't have seen what happened. [01:18:39] Speaker 2: Well, there was some underlying themes, right? [01:18:43] Speaker 1: I mean, but just even before that. So if you take away technical analysis and you take away fundamental analysis and what you have left is speculation, by definition, that's actually... [01:18:55] Speaker 2: But we're not taking... We'll say that we're discounting technical analysis because we're not, right? [01:19:00] Speaker 1: I'm saying the market. [01:19:02] Speaker 2: Yeah, but there's underlying themes there. So prior to that moment, right? I mean, you could probably put up a scale and look. When he decided to short these companies, I remember the date. Because one thing about the Louisville dude, he was going viral on social media, which brought even more attention for him. And so when he decided that he was going to short these companies, this is like mid-June. And so if you look from mid-June, let's say the 12th to the 25th, you watch Micron hit its all-time high. Sanders hit its all-time high. Even NVIDIA was in its near highs. From that moment when he decided that he's going to short these companies and, you know, the older guard is up there watching, everything's changed, right? The stronger companies that were oversold, we saw them bounce back up that day that he had to liquidate his positions. Why? Because those are strong companies, and they might have gotten, hey, this is an oversold position. Like, why are we selling these? What is it? So we can't say that with discount. I wouldn't discount technicals if I'm doing that. I'm looking at like, all right, well, did it hit its 100-day on a daily? Did it hit its 72? What did it do after? Did it retrace? Did it get down to its 200? So I'm watching all those things, all that momentum leading into it. I would assume you're saying that most people are not doing that. [01:20:13] Speaker 1: It's not even that most people are not doing that. What I'm saying is that the technical analysis, the fundamental analysis don't matter. When a company like Micron has the best earnings report in history and then goes down 35%. Wall Street is dictating the prices of stocks in the short term. So it could meet all of the checkpoints on technical, all of the checkpoints on the fundamental analysis, and then go down 15%. Just because Wall Street wants it to go down. [01:20:40] Speaker 2: For better pricing for institutional investing. Yeah, exactly. But it didn't go right down. It got to its all-time high, and then obviously, this underlying thing. The key metric will be, can it get back to near its all-time highs? Which I think it will. [01:20:56] Speaker ?: Okay. [01:20:56] Speaker 2: Yeah. We didn't even talk. So the Fed made a decision last week. A lot happened last week. That was Wednesday. And people got this. I mean, that hurt the market too, right? Like, he knows that inflation is running hot. He knows that he has to raise rates. He decided to keep in pause. A lot of people didn't agree with that. The market took a take. Well, we're trying to figure out at what point. Is it September? Is it going to be November? Is it going to be twice? Because how are we going to fight inflation, right? Most Fed shares, and if you listen to analysts, they're like, yo, what is he doing? Why didn't he just get it out the way now? Like, raise it now because you take the Band-Aid off, let's raise rates, let's see what the outcome is for it, and let's see if we have to do it again. And so now it's almost like they're delaying the inevitable. And so we saw the market pull back, and CapEx, those major hyperscalers, have helped the market in a sense where, okay, if they're spending and they're spending, are they making money? And Amazon, Microsoft, they said they're making money. We saw Meta have a nice day today as well, even though they got destroyed. They dropped, like, $56 after they reported. Shout out to the Meta family. [01:22:05] Speaker 1: Yeah. All right. All right. [01:22:08] Speaker 2: So Meta, real quick, just saying this, because Meta's important. When you look at the revenue sources, if they don't make the money in advertisement, which is like 90% of revenue, 98%, where else are they going to make the revenue? Which is why you saw Microsoft, which has different sources of revenue, Spike, and Meta kind of trail. I think they, you know, they put out the glasses. They lost $4 billion in sales in the glasses. They scaled down the labs. So I think Meta's going to be okay because of the imprint of 3.2 billion users, and they'll figure out a way to, you know, use AI to a more efficient standpoint where, like, obviously you're using it. People made the argument. I was watching a couple shows that they've made the most addictive product that humankind has ever seen. An algorithm that keeps feeding you and keeps feeding you and brings you back and keeps feeding you. Most people, when they wake up, they look at their phone. They go on social media. Before they go to sleep, they're checking social media. People are just checking all times of day for no reason, just because of the addiction of they might have missed something. [01:23:17] Speaker 1: Perhaps. Perhaps. Let's talk about, okay. Oh, man. Midterm elections. It's going to have an impact on the stock market, potentially, for sure. And that's something to really think about because, especially if the Democrats take control of the House, Republicans is doing all types of games and gerrymandering to stop that from happening, but there's going to be a disruption if the Democrats get back in power. [01:23:52] Speaker 2: Yeah. I mean, historically, midterm years have been negative. This year, we haven't gotten to that point just yet, but it's still early. And even August, when we talk about months to invest in, August has not. [01:24:04] Speaker 1: And that's the scary part. Like, that's what I was telling somebody the other day. Nigga. The scary part is it can get worse. But is it bad now? Well, if you was holding Mike Brown, Sandus, and all of these stuff, yeah, it's been very bad. [01:24:18] Speaker 2: Yeah. In terms of the overall, right? So, context. [01:24:22] Speaker 1: Oh, shout out to you. Shout out to the loser. I'm still up. [01:24:26] Speaker 2: Oh, they made another one? [01:24:27] Speaker 1: No, the MU. I just, every now and then, I just, I got to remind people that they losers because they might, they might forget it. [01:24:34] Speaker 2: Remember, we're going to keep it positive. [01:24:36] Speaker 1: Y'all always be a loser. [01:24:37] Speaker 2: We're going to keep it positive. We're going to, we're going to stay in this, this positive lane. It's a new month. We're just going to stay positive. The, um, August has traditionally been, uh, a tricky month in terms of NASDAQ, uh, and S&P, uh, and July had traditionally been a great one. Like, I think it's the third or fourth best month to invest in. Um, so we'll see, but the election, like you said, policy changers, um, people changing office, changing seats that will have an impact. Why? Well, we're still in this AI infrastructure build out. What legislations will be passed because of it? I know, you know, water has become an issue. Um, energy has become an issue. What type of, you know, legislation will be put in? What type of laws will be passed? Who's going to be making those, all those things play a role? [01:25:26] Speaker 1: Friendly reminder. Friendly reminder. I like that. Friendly reminder. Hey, loser. What y'all want me to do, man? Friendly reminder. Um, but yeah, I got to stop saying that. I supported Donald Trump. Don't put that on my jacket. I never supported Donald Trump. I never advocated for Donald Trump getting in the office. I got extremely criticized and torn apart because I actually, put on my page that I was in support of Kamala Harris. And we went and we met with her at her house. We had dinner with her. [01:26:00] Speaker 2: They said you are absolutely right to call out losers every month. [01:26:03] Speaker 1: And we also went to the White House Christmas party for the vice president. I'm staying out of politics from now on until I do run for office because I'm probably going to run for governor of New York. I'm seriously considering it. I think that I could, um, put together the coalition and raise enough money. I'm strongly considering that outside of that, I'm staying outside of politics. I'm staying away from politics, but I see this all the time of you guys endorsed him. You guys, when you say you guys, I did not endorse Donald Trump, please. [01:26:36] Speaker 2: When they say you guys, are they including all that? Like I'm throwing in there too? [01:26:40] Speaker 1: It's the market Mondays. Damn. [01:26:43] Speaker 2: Yo, man, y'all see all the trouble? Mom, that's not true. I just want to let you know, mom, that's not true. I want my mom to know that. I'm going to let, I want your mom to know that too. It's not true. [01:26:55] Speaker 1: Okay. Um, let's talk about Aliko Dangote. Uh, personal Titan. He's a, he's a, he's a personal hero of mine when it comes to business. The richest black person in the world. If you don't know who Aliko Dangote is, he probably around 20, 30 billion dollars out of Nigeria. Um, and man, he changed the game so much with his refinery, oil refinery. And he's been fighting against the Nigerian government for some time. Now they've been trying to give him a hard time. Go figure. Um, but he's taking his company public and I believe it was on the Nigerian stock market, but now he's taking it to the London stock market. So this is, this is major. This is big for Africa. This is big for energy independence. This is big for Nigeria. What do you think about Aliko Dangote's IPO on the London stock market? [01:27:44] Speaker 2: I think Aliko Dangote is a name that should be celebrated. Uh, it should be bolstered across all social medias. I think it's somebody that our children should know. We should know. Um, because what he's doing is something that we've never seen before. Uh, for one man to use his business brilliance and his infrastructure to change the GDP of an entire country. I mean, it's unprecedented. Not looking for outside people to help. And he just said, we're going, we're going to do it ourselves. And you're talking about, you know, oil as a resource is something that Nigeria has. And the fact that they had to export it, um, out to get it refined and then pay a fee to have it imported back to them. It just never made sense to him. And when you say it out loud, it doesn't make sense in general. And so to be able to create a refinery in Nigeria, um, based off his resources, right? You're talking about a guy who's done it in flour. He's done it in sugar. He's done it in cement. Um, he has powerful friends in electricity, like all the things you need. He turned to his community, uh, of, of, of friends in the world of business. And now has made this a publicly traded company, um, for Nigerians and now going to the London stock market. And so people can actually have access and ownership into it. It says a lot, you know, his, his net worth, quote unquote, was at 30 billion. The number is closer to 60 million. Most people are saying because of what this means. So they go from like the number nine or 10, uh, exporter of oil to now one of the, uh, importer of oil to now one of the top 10 exporters of oil because of this refinery. It's a huge mission. He's been on it for, I feel like we did this in our, our first year. He was just talking about it in 2019. So we're seven, almost eight years into this, uh, and the refinery's up, man. I can't wait to see it. I actually want to see it in person. Can't wait to speak to him, meet him in person to shake his hand. He's one of the first people that I wrote about when I was teaching financial literacy 15, almost years ago. Um, it's incredible. I think people don't even understand the magnitude of it. And so I'm glad that we get to highlight it and give him, you know, all the praise that he deserves and all his entire team. I know his daughters are involved in it as well. He deserves it because that is something that I don't know if it could be replicated, but the lessons that can be learned from piling your resources together, creating something, making a change that's beyond you. He said, this isn't even about money. This isn't about him. This is about the future of his country, which is extremely honorable. [01:30:22] Speaker 1: Aliko Dango T is actually David O's, um, godfather also. If you don't know this thing, we interviewed David O in Lagos and, uh, David O's, his father's a billionaire and David O's, uh, uncle is, uh, Aliko Dango T, his godfather. Um, and Aliko Dango T's brother, he's, he's up there too, but I gotta be careful with this political stuff because we do have to go back to Nigeria soon. So I don't want to offend any, any, any more politicians for sure. We don't need that. No, definitely don't need to offend. No. International politicians. Absolutely not. But he's been having a fight with the, with the government. Um, Aliko Dango T has been, they've been, it's been a battle. They've been, they've been, they've been, they've been at odds. [01:31:06] Speaker 2: You could imagine people not wanting to see that happen from external forces. Um, but you know, he's managed to still get it done. [01:31:16] Speaker 1: Okay. Well, shout out to Aliko Dango T, not much success. We look forward. We've been working on, we've been working on trying to meet Aliko Dango T for a very long time. So I'm sure it'll happen when it, when it's time to happen. Um, but we look forward to sitting down with the brother to, to, to, to looking at, to visiting his refinery and to really, you know, see how we could, we could help move, move the situation forward because it's important. Energy independence is the only way that Africa is going to move forward and, um, it's vitally important that Africa moves forward. [01:31:53] Speaker 2: It's the first step. So, um, you know, so I, I know the initial offer in Nigeria is you had to be, um, a citizen of the con, like you had to be from a country in Africa. Uh, so I wonder, now that's what I'm saying in London, I wonder what the stipulations will be for that. [01:32:10] Speaker 1: All right, Mike, you would go back to the original list. [01:32:14] Speaker 2: Thanks, Mike. I think you got Palantir up next. Yeah. [01:32:20] Speaker 1: Palantir. Death and destruction. [01:32:24] Speaker 2: All right. So Palantir actually reported, uh, as the market closed. So they beat on revenue. They beat it on adjusted earnings per share. Uh, U S commercial revenue grew, uh, to 764 million, uh, and the EBITDA grew as well. So a solid quarter for them. Uh, I saw Alex Karp give some quotes. Um, I, I will not read them, but you know, he, he, he is a, a very interesting guy. Um, so I mean the company did well, it's been getting beat up. It had its all time highs, uh, last year and it's kind of been pulling back because of the high valuation. I think their multiple was 270, 267 X, some crazy number got down obviously with, with the, the, the company pulling back down to 67, which is still pretty high, but it did beat on-earns I think the most important thing we saw was that the business structure has changed from them predominantly getting 50% of revenue from the government to now getting commercial enterprise to buy the AI software. Um, and so you, you think about all the U S agencies that were using it and I mean, you could like that or not, but it has changed. And so now that customers include banks, healthcare systems, energy companies, manufacturers, retailers, insurance companies, airlines, pharmaceutical firms, they have expanded their base of customers, which has helped change the revenue model, which is good because that is something that is scalable rather than saying, Hey, we're going to be super reliant on the government. Um, so that's good for them. Uh, and that's good for the AI story as well, because again, if we're talking about infrastructure, NVIDIA, the GPUs, the memory, all that's part of it. What's the next layer of the applications, Palantir being an application service, now being an application, um, these will benefit. So great quarter for them, but let's see if they can keep that going, um, and maybe retest some of these all-time highs. Now the valuation we gotta see, we gotta, we gotta be mindful of that. That's a, that's a hefty, hefty, hefty, multiple meaning that we're already pricing in the future growth of it. So just be mindful of that. [01:34:25] Speaker 1: - Outdated investing rules. [01:34:28] Speaker 2: Ooh, uh, I'll go, I'll go down Ian's path here and say diversification. Um, people believe that diversity, diversification will reduce risk. Um, which doesn't necessarily always hold to be true because if you've diversified across, I don't know, 30 stocks and the market pulls back, that really hasn't reduced your risk. And so, you, you know, you want to be concentrated in an area or a few sectors, um, you know, pick a few. I know Ian has two, two tech to index, pick a few sectors that, that you understand, that you see growth in, not just like growth now, but future growth, future guidance. Whether that's, you know, technology or whether that's energy or that's healthcare, look inside those, those sectors. And especially inside those ETS, if you're going to go stocks, pick one or two, you don't need 50 companies. You don't even need 30 companies. You need a solid core of companies that you understand, you know, the business. Um, you might know the CEO if you, if you're really locked in, but you understand the growth story. Um, so I would say that. [01:35:38] Speaker 1: - Shout out to the green jacket community at EYL university. I believe it's 160 members now. - Yeah. - So that's the green jacket club is for anybody that gets over a thousand percent rate of return on an investment or, or core option trade. Um, and we have over 160 members at EYL university with green jackets that earned their green jacket. [01:35:57] Speaker 2: - Well, we got 160 in class of 26. So the cutoff of that was just in general. - Yeah, no, no, there's more than that. - So we got more. - No, I'm not saying just in general. - Okay. [01:36:06] Speaker 1: - Yeah. - Just in general. - Yeah. - But we're so proud of you guys, man. - Yes. - Thank you so much. Thank you so much for being a part of EY university. [01:36:16] Speaker 2: - You, you are, you are a member. [01:36:18] Speaker 1: - I am a member. [01:36:19] Speaker 2: - You are a member. [01:36:20] Speaker 1: - I am a member. [01:36:21] Speaker 2: - Yeah. Shout out to all the Jackers. [01:36:23] Speaker 1: We're looking forward to meeting y'all. - Um, the biggest market surprise. [01:36:28] Speaker 2: - The biggest market surprise. - In general or the past week? Cause we've had a hell of a week. - Um, I think that, that, that Leopold story was pretty, pretty alarming. A lot of lessons. I, when I text you as it happened, I was like, there's going to be a movie. Somebody's going to make a movie about this to see how fast a Citadel came in and swooped up that portfolio. That was interesting to see the companies that he was invested in. I think that was interesting. But again, I don't think he was wrong in his, in, in the companies he was invested in. I think his strategy was wrong, but he was, he's, they wouldn't want the portfolio if it was companies that were going to tank or companies that, you know, would be delisted. There's some solid companies that are in that portfolio that they're going to have a ton of growth still to go. I know bloom energy was something that went crazy this year. I understand this obviously has grown crazy over the past 18 months. Um, so yeah, man, that, that what transpired on Thursday or Wednesday, whatever day it was, that was, that was pretty surprising to me. [01:37:36] Speaker 1: - You could be right and still be wrong. Somebody told me this about life. - That's a fact, that's true. - And sometimes it's not about right and wrong. Sometimes it's about right and smart. - Mm-hmm. - I'll repeat that. - Who just, yes, we just heard this. - Yeah, it's not, it's not necessarily about right or wrong. It's about right and smart. So Leo, he wasn't wrong in his estimate, but was he smart in doing the leverage play and being so vocal and different things because he's right about the stocks, but he still lost. Sometimes you could be right and still lose. [01:38:07] Speaker 2: - Still lose. You know what he didn't have? Tom. He didn't have Tom. He wasn't, he, Tom wasn't an asset. We always say that. Make Tom your number one asset when you're investing. So if you're going stocks, make sure you long-term, you're keeping them 5, 10, 15, 20. Maybe you never sell them. You pass them down. If you're doing options, give yourself as enough time as possible because when that expiration starts to near and that data starts to decay, it's going to be tough to come back from. So make sure you give yourself time. If he had more time and he didn't over leverage, he could have probably withstood for another few weeks. [01:38:44] Speaker 1: - Time. Time is the greatest gift of all. [01:38:46] Speaker 2: - Yeah, it's a fact. [01:38:47] Speaker 1: - Man. InVestFest. Happy InVestFest week to those that celebrate. For the faithful only. Keep it righteous. Registration is Thursday at 12 o'clock. GWCC is the B building or C building? [01:39:02] Speaker 2: - I think where is C? Mike, are we in C? Text me. [01:39:06] Speaker 1: - I think it's the C building. GWCC. We back. Year six. - Yeah, we didn't see. - Yeah, we didn't see. - InVestFest. Friday all day. Friday. Friday night. [01:39:20] Speaker ?: Man. [01:39:21] Speaker 1: Black Tie Gala. Legendary. Saturday all day. After parties on Saturday. There's two after parties actually. Link in bio. Do what you like. - Yeah. Get the app, man. - Do what you like. There's the after party on Saturday. We will be at Avenue. But there's another after party too. Shout out to PVO. We will be at Avenue. You can get general admission tickets or you can buy a bottle. [01:39:57] Speaker 2: - Get the app. Download it. - The moment has come. - Mark. I would get the app. I would look at it now. I would map out the things that I don't want to miss. I definitely don't want to miss. There's certain panels I definitely don't want to miss. Schedule it and live by that. [01:40:15] Speaker 1: - And shout out to Jalen Rose. [01:40:18] Speaker 2: - Jalen, what up? [01:40:20] Speaker 1: - Let's talk it out, man. Shout out to Ray Daniels. You added me in the clip. I'm sorry I didn't accept the request like I said. I'm tired of going viral. I'm exhausted. I'm tired of going viral. I just needed a break. - Shout out to Ray. - Salute to Ray Daniels. - It's been a hell of a- [01:40:38] Speaker 2: - Shout out to Nori. [01:40:39] Speaker 1: - Shout out to Big Bang. [01:40:40] Speaker 2: - DJ EFN. Dream Champs. Who else? Who else? [01:40:46] Speaker 1: - Ash Cash. - Ash Cash. - Decisions, Decisions. The Breakfast Club. Man, it's been a hell of a press run. [01:40:56] Speaker 2: - Maybe one more stop? Maybe. [01:40:59] Speaker 1: - The press run's not over. - Maybe. [01:41:01] Speaker 2: Maybe one more stop. [01:41:04] Speaker 1: - Saving the best for last. Yeah. [01:41:07] Speaker 2: We are working. Look, man. [01:41:09] Speaker 1: It'll all make sense. Soon. Stay with me. Bear with me. The InvestFest app. That's what the app. InvestFest is. There's an actual app. - It will all make sense soon. Man. Sorry to put you guys through so much. [01:41:21] Speaker 2: The duress. [01:41:23] Speaker 1: I know it's been difficult for you guys. Um. [01:41:26] Speaker ?: But it'll all make sense soon. [01:41:26] Speaker 1: Um. Yeah, man. Shout out to the team, man. Shout out to the entire team. Viral. Viral ability. [01:41:32] Speaker ?: The viral ability of this. [01:41:32] Speaker 1: No, no, we not done. We not done. Shout out to the entire team. [01:41:35] Speaker ?: Uh. [01:41:36] Speaker 1: Shout out to the entire team. Viral. Viral ability. The viral ability of this. [01:41:40] Speaker 2: No, no, we not done. We not done. Shout out to the entire team. I see. [01:41:44] Speaker 1: Uh, shout out to Magda. Shout out to Ab. [01:41:46] Speaker ?: Shout out to, uh. [01:41:47] Speaker 1: Mercedes. I see she's in the chat. [01:41:49] Speaker 2: This is, uh. Our moment is here. Our moment is here. We are ending this press tour with a bang. Shout out to Ab, shout out to Mercedes. I see she's in the chat. This is a moment is here. [01:42:05] Speaker 1: - We're going out with a bang. We are ending this press tour with a bang. We're not done yet. [01:42:12] Speaker 2: - Stay tuned. [01:42:13] Speaker 1: - We got a few more days left. We're gonna end with a bang. Then we're gonna have a glorious invest fest. [01:42:22] Speaker 2: - And then I'm off the grid. I'm off the grid. [01:42:25] Speaker 1: - I'm going on vacation. [01:42:26] Speaker 2: - I got swimming lessons I need to take. [01:42:28] Speaker 1: - I'm going on vacation after this, man. I need a vacation. I ain't gonna lie to you, bro. I need a vacation badly. I need a vacation badly. [01:42:37] Speaker 2: - Any islands willing to have us for the week, please hit us up. Please. - Yes, sir. - Tourist boards, please. We got a whole lesson on tourist boards. Think I know how they work now. Let's see if we can work in our favor. We love y'all, man. Love is love. Again, shout out to my brother, Ian. Happy belated, my guy. Blackout on Wednesday. Atlanta on Thursday, man. It is on, man. We looking forward to meeting, seeing, greeting all of you. And you see us in the streets, say what's up. Pitches are free. Love is free. We gonna spread that. So, y'all be good. Traveling mercies to everybody that's flying in. All those that are driving in. Traveling mercies to all y'all, man. It's that time. It's our time of year, man. This is what excellence looks like in real time. And it's not possible without y'all, so. [01:43:35] Speaker 1: - What's the A-A-M-K-R before we leave? [01:43:38] Speaker 2: - Oh, Amcor. Am I, somebody asked if I'm still in Amcor. I am still in Amcor. Yeah, I still am. I think everything took a hit. So the A-A-I story from manufacturing, the packaging, that took a hit. So yeah, we're still in Amcor. We're not moving. [01:43:52] Speaker 1: - Okay. Salute. It's been real. [01:43:56] Speaker 2: - It's been real, y'all. [01:43:57] Speaker 1: - We'll see you on Blackout. Blackout, nine o'clock Eastern Standard Time on Wednesday. And then we're gonna see you at InvestFest. Thank you so much. - Y'all be good. - Love.