#FinanceDaily Anthropic/Decart; PPI; $SPCX $CRWV $NBIS

a couple deals that we will get around to discussing. I'll just put them on the table. Nelson Peltz and Triann, private equity firm, Ish, Hedge, Slash, private equity fund. In interest of Wendy's, the fast food chain stock was up 15%. Wendy's has had struggles, lots of competition in its space, beef prices, a million chicken outlets. It's just, you know, Burger King putting a lot of money behind reviving its chain. So Wendy's has been under pressure. Nelson Peltz thinks it can take a private and turn it around. Second deal to talk about is the Los Angeles Lakers. Getting sold for the second time in not so many months for a pretty tidy markup from 10 billion to now. This price tag is gonna be 12 and a half billion. And it will be bought by Bob Eiger along with Josh Kushner of Thrive who was also the guy who tried to orchestrate the investment in FIFA who at the same time is also raising capital, raising $2 billion for his venture fund on a 12 billion post money valuation. I mean, if there's anyone who's on a massive role, it is Josh Kushner. And frankly, I think it has very little to do with his brother or the president or the administration or his connections in Washington. This is about a guy who really has taken Silicon Valley and pretty quietly, I would say, right? I mean, he could be a lot louder and prouder than he is, especially considering the family that he comes from and the connections. And he's done amazing things. Again, he reminds me a lot in this way, although I don't know either one personally, a lot of Chase Coleman who previously had an incredible, incredible run, not to say he's sidelined, but one of the Tiger Cubs. And then the last deal we'll talk about is the Paramount Warner Brothers deal. Because David Ellis in Paramount CEO is now threatening relocating the company from California. If there's no progress towards a settlement by October, this isn't a joke, only because I'll say the following. Hollywood has generally been disrupted. Let's put it that way. In terms of filming going on in the state of California for long form and short form A, B, because of tax incentives elsewhere and because the industry got fed up, I guess, with the California centric part of it. The second part is the upstarts in the media industry have not been necessarily California centric like the Amazon's of the world or the Netflix's of the world. And then while I was in Atlanta yesterday, the person I was with mentioned having nothing to do with any of this, that there's a massive studio being built in Atlanta, they already have Tyler Perry's outpost in Atlanta because he's Atlanta centric, but another movie studio is being built. I also have down here in New Jersey a massive Netflix campus being built on the site of a previously army base that was closed during the Obama administration. And so the departure of paramount from California, I think is a real thing. I mean, yes, certainly it'll come with a lot of cost and maybe David Ellison is rattling the saber and he'd rather just get the deal done rather than leave California. But that being said, the knock on effects going on in California would be real. So we'll chat about that as well along with a number of other stories that I want to hit on. But anyway, that was a very long intro folks, sorry. El audio, good morning, your hand, please. Did I go on for a story about that? Okay, no problem. I just was doing something. You asked me a very interesting question yesterday, David. And you know how I've been feeling about hardware and it's kind of hard to just call hardware and AI just hardware because they're different facets to it. There's the optical part, which I consider the weakest part in terms of price action, then followed by the semi-conductors which if you look at the SMH, sure they've recovered but there's some that try to make a run at the end of the year. I mean, I mean, at the end of this cycle before we started seeing the breakdown in semis and they just haven't done as well like Marvell. Like I said, try to make a push at the end and it just hasn't and that's more optical in nature. And then you have Nvidia that's just been sitting sideways in the 200s range for a very, very long time. So there's no question that there has been weakness there. However, when we go to the demand for compute power that's where three names come to mind in that two of which had pretty good days yesterday. I think I've been clear that I tend to tear sectors into three tiers and that decides when I act or buy any of those areas within a sector because I believe that you always want to buy tier one stocks in the latter half of the decline because they're gonna do exactly what NIDUS did. They're gonna do exactly what SpaceX did because I don't know if you've noticed David, the idea of a U-shape or a sideways consolidation and then a run up which is what we used to have 30, 20 years ago doesn't exist anymore, it seems. When the stock gets hit 50% you expect it to settle there because that's a pretty big hit. But NABs and CoreWeb I think are in a group by themselves. In the same way, David that CrowdStrike and Palo Alto stick out in software and started outperforming the whole space as early as, I mean I think they started outperforming the whole space early in the spring. While the rest of software was still looking at swoon. So all stocks are not created the same way. And obviously I think that when you look at compute power there is still demand there. The question is these companies, as you mentioned, CoreWeb doesn't make money. In the case of IREN, it's the lowest of the three quality of the three and the bit mining area part of it didn't help them. So honestly, NABs looks pretty interesting at this point but the question again becomes, how sustainable will this cap ex spending be? And we saw that half trillion dollar announcement by Nvidia we'll see how much that actually comes to fruition where the Wall Street banks are coming in. You know, the Wall Street banks say they're there but what happens when something breaks or there's a little unknown Black Swan event that might not see fruition but I'm gonna go back to one premise here. The market has levers, David. And the levers allow this market at the index level, the S&P and the NASDAQ to limit the damage because there's interrotation, sort of like a sea salt, that's why I place the sea salt the time on my thread where money goes from one area to the other because this is think called scarcity of capital at certain times. And if anybody is honest, the demise of the semis began because of the space ex IPO. It's obvious. There was not enough capital to fund that massive IPO that already has a market cap of $1.9 trillion, I believe, or close to that. And the S&P has a $70 billion market cap, a $2 billion company has an impact. And I don't look at space ex as just a space company. I see it as a mechanical lever for rotational parking of money or at times. Well, that's what essentially happened in my opinion with the semis when they first sold off before the demise and that happened during the space ex IPO. And now, then we saw that the total collapse of the sector over a period of three weeks, like we have not seen. And you look at the memory makers, good luck expecting some of these memory makers to get back to those highs they could, but right now I think they're better places to buy. So I hope that explains the indistinguishes why those companies are rallying. I have to see a confirmation that this amount of cap that's is going to be sustainable for myself to commit my clients money to these hardware sectors. But I do think that the cloud compute sector is a special sector when it comes to the demand for that, for the GPUs that are necessary for inference and training of AI modules. And a lot of companies don't have the capital of the AI hyperscalers and they need to rent their AI data centers. Thank you, Eladio. Look, I'm going to make a more elementary point, folks. The trend in SpaceX stock was not good, even though I'm not a trend follower. It was not a good trend. And conventional wisdom would lead one to believe that if the trend wasn't good and a bunch of stock was going to get unlocked and be able to be traded and sold, the stock would come under additional pressure and then go down. That has been the absolute opposite of what has happened. So first of all, I'm not gonna, I don't know if they've visited. David, you gotta, the minute Elon Musk is anywhere, everything's different. Can we at least agree there? It's very nice to say that on an update. No, no, no, no, it's back as bad as I reality too. He is a trillionaire, right? Listen, I'm just saying, forget Elon for a second and you have to forget Elon for a second. You can't. Come on, I wouldn't own. And look, Tesla is a different animal. I got rid of that after owning it for quite some time earlier this year for good reason. And they're in transition and maybe I'll consider looking at it again, but right now, it's in a transition and we don't know, it's in limbo. But space X is in what sector? Is it just space? No, but the point is it is impossible to put a valuation on that company, right? I don't think so. Did you put a valuation on Amazon way back in 2014 when Elon was a big involved? I did not, I did not. I'm just, excuse me, I'm sorry. The point I'm simply making is that this was, for those that felt that Elon was going to conquer all, no matter what the pressure was on the share price, in the face of unlocks that he can't control, right? That will continue throughout the rest of the year, right? That is not an easy logical argument to make. I get it, you have an X factor here. I got the X factor. The fact that the X factor can overcome all of the other logical factors is just, it's outstanding. I'll just say, I'm not, boy, wait, one more point. Can we be honest and admit that this company should have gone and then Thropic should and open AI, we shouldn't be IPOing trillion plus dollar companies. Can we agree that there is a mechanical structure that the market isn't able to assimilate the all of a sudden these huge behemoths, they're, okay, let me just cut you off there. Because then I'll give it to Brent, I know there's a lot of hands and we're gonna get to them, okay? Everyone will get to make their points. But I'll hand it off to Brandon on carrying up, following up on your last point, the Lodio, the FT reported this morning that October's IPO for Anthropic is gonna be at a valuation of $2 trillion, my friend. 2 trillion. Now we can all laugh, we don't think, we think it's great. I don't even know, we're in Lollah land folks. Like rents in Manhattan and Brooklyn are super sky high at the same time, the United States is gonna send sell $25 billion of 30 year bonds today at its highest borrowing cost since 2001. This market overall, market plus economy believes that we have an unlimited amount of turbo charge. I mean, we are soaring to ever higher highs and in the face of a lot of other crazy stuff. And I just, listen, I'm gonna give it to, the only other thing you need to talk about,