Stock Market Futures Show: Can SaaS Lead The Way?

本站添加: 2026-06-02

[00:00:02]What is going on everybody?

[00:00:05]Happy Sunday.

[00:00:08]Thank you all for being here. Really appreciate it.

[00:00:16]Look at this. We got a packed house tonight. Rambler, Missy Ledger, PB, Chelle's June, late.

[00:00:28]What's going on everyone? A Mick couldn't be here so I said you know what because Melanie is here I will do the future show. I'll try to be as entertaining as a met before we get started read the disclaimer.

[00:00:49]I am definitely not your financial advisor.

[00:00:53]I am not a financial adviser.

[00:01:00]This is for entertainment and educational purposes only. And with that being said, let's get on with it.

[00:01:10]And I don't remember if my system has futures or not. I actually don't remember. So, I have Robin Hood open just in case. Figured out my Robin Hood information.

[00:01:24]And uh we're going to get on with it.

[00:01:27]We're gonna get on with it.

[00:01:33]Lena's here. Never fear, Lena. Where is uh AMD opening tonight?

[00:01:46]Where is AMD gonna open?

[00:01:51]All right.

[00:01:59]I don't think that mine is going to work. We're going to have to use uh Robin Hood, I believe.

[00:02:11]We're going to figure it out. We have uh 12 minutes, everybody.

[00:02:16]New angle. I moved the camera because it looked like I was uh it looked weird whenever else somebody else came on. So, I moved the camera a little bit.

[00:02:29]Is it better is the question. Is it better?

[00:02:41]I mean, I don't know about hair gel. I don't know why my hair hasn't moved. I was on the couch sleeping before. Pretty crazy.

[00:02:49]Matt Money is in the chat. Everybody, everybody's favorite White House quant.

[00:02:58]Matt Money, if you would like to do the future show with me, you're more than welcome. You have a link on WhatsApp, sir.

[00:03:06]I don't even own I Ren, so I wouldn't even be able to DCI. I don't know what to tell you.

[00:03:13]Finally moved the camera. Was the camera that bad? Jesus.

[00:03:21]Uh, Baby Yoda walked away.

[00:03:25]Grou is on the chair in the other room chilling.

[00:03:29]Amit is uh, you know, Amit is doing emit things right now. Whatever that is, Emit is doing emit things.

[00:03:41]I don't know that we can consider Palanteer actually pumping. I mean, Grou is okay. Don't you worry. Grou is watching TV in the other room.

[00:03:57]So, let's see where we left off.

[00:04:00]Man, what a week Service Now had, right?

[00:04:04]service now 12437 and extended hours it got to 128 next decade man and I went over today it was 805 we're going to get the new numbers in 10 minutes pretty excited Salesforce 192 Nvidia 212 ARM 354 energy transfer 1923 three. That's right, Lena. That's right.

[00:04:37]Service. Meow for Matt.

[00:04:41]Alria Group dipped under 70. SoFi 1826. How many of you think that we're going to hit 20 this week? I saw some 20 comments. We'll see what happens.

[00:04:56]Oracle 226.

[00:05:04]Yeah. Hood. Hood.

[00:05:08]IBM 298.

[00:05:11]Zeta 2290. Man, how good is that? How good is Zeta, everybody?

[00:05:18]Man, we had some losers, too.

[00:05:29]I know. I'm feeling good about this week. I'm feeling good about this week.

[00:05:33]I did buy Coreweave. I did buy Uber.

[00:05:38]Started positions in both of them.

[00:05:43]Zeta, the Zeta crew, I'm telling you, I think Zeta is going to do something special. We'll see. But at a five billion market cap, I can see this company getting bigger. I don't know. Call me crazy. Call me crazy if IBM opens up above 350. Holy cow.

[00:06:07]That'd be pretty wild.

[00:06:14]Now, let's check the Oh, whoa.

[00:06:18]Birkshshire Hathaway to buy home builder Taylor Morrison for 6.8 billion.

[00:06:25]The deal is one of the first big moves by Greg Ael. Look at that.

[00:06:31]Greg Ael buying a boring home builder.

[00:06:36]The hell? I don't get it. Whatever. I don't get it.

[00:06:46]I would have thought he would have done other things, but hey, why why would we think about buying accidental petroleum?

[00:06:51]Let's go buy a home builder.

[00:06:56]pretty crazy in my opinion. All right, so where's crude at? We got crude at 8950 and we got Brent 9291.

[00:07:07]I don't believe Donnie T put anything out on truth that was important.

[00:07:13]Uh he was just complaining about CNN today and the New York Times.

[00:07:20]We don't have any news about a damn deal. Stop tweeting about these things.

[00:07:26]Put out a get a deal done.

[00:07:42]Is this why everybody's going crazy about uh Andas? Hold on. Let me show everybody this.

[00:07:51]Did everybody see this drone depot or drone port, whatever the hell it is?

[00:08:02]Did everybody see this?

[00:08:09]Is this why everybody's going absolutely crazy?

[00:08:14]There. There she is. I can't click today.

[00:08:27]Maybe, listen, maybe I'll just jump on the bandwagon. Who knows? Who knows? I don't know.

[00:08:45]I mean, That That's a healthy uh position, AK.

[00:08:52]That's a healthy position. Don't worry, Emit's okay.

[00:08:57]He had something that he needed to do.

[00:09:05]You know what? You're right, PWC. I do not belong on the bandwagon. I do not belong on it. I'm not getting on. I don't want to be the jinx. I don't want to be the Jens.

[00:09:28]Okay, we do have some unfortunate news.

[00:09:32]You guys know I don't want to be political.

[00:09:36]Looks like uh the fighting continues overseas, not in Iran and Lebanon.

[00:09:44]Um, it's an unfortunate situation.

[00:09:50]There's nothing about a deal.

[00:10:00]We will see what happens. I don't know.

[00:10:02]We It doesn't look like we're getting anything right now.

[00:10:06]Am I going to cover Nvidia? I don't know.

[00:10:12]I am considering it, but it's late. I mean, starts what, 11:30?

[00:10:21]I don't know if I'm going to do that.

[00:10:25]I may make a video about it for tomorrow. I may watch it from the couch.

[00:10:29]I don't think I can sit in this chair at 11:30 at night doing this. I really don't.

[00:10:43]It's not the end of the world.

[00:10:57]No, I do not think the end of the Iranian conflict would be a sell the news. I do not believe that. I actually think it's going to be oil going under 80 and the market ripping.

[00:11:11]This is not going to be a sell the news moment in my opinion. But what the hell do I know? I don't know [ __ ] But if I had a bet, I would say the market rips higher when we get a deal because you know what? That means the straight opens. That means oil is going down. So, what do I think about Zeta? Super bullish.

[00:11:40]Super bullish.

[00:11:43]I got to make a reaction video to the Steyberg episode, but super super super bullish.

[00:11:52]I think that people are going to be surprised. I mean, Zeta is a small company, 5 billion market cap or so, and when you look at the numbers, there is no reason why this thing can't get significantly bigger. Look, my entire thesis is that this looks like a baby palunteer in my opinion. And when I say a baby palunteer, I don't mean it's going to 350 billion market cap. I feel like this is Palanteer back in 2122 just becoming profitable and if you listen to what Steyberg said he really does believe that over the next decade if I'm not mistaken they become a 10 billion revenue company with 30% free cash flow margin.

[00:12:43]So if you think about that at a three billion free cash flow at a 30 times multiple it's a $90 billion company.

[00:12:56]I don't know if it takes a decade. I don't know what's going to happen. But when you think about it that way I it's pretty interesting.

[00:13:11]Palace, are you recovering, sir?

[00:13:15]Hopefully, you are recovering.

[00:13:18]Rachel, thank you very much. I truly appreciate it.

[00:13:22]I appreciate it. Thank you. Emid is not streaming tonight.

[00:13:29]Emid is not streaming tonight. I don't even remember what's on this watch list.

[00:13:41]We probably got to put a few things on here.

[00:13:45]Um, all right. We got what, 30 seconds or so until we're off to the races.

[00:14:07]We will see what happens.

[00:14:15]All right, it's 8:00 p.m.

[00:14:18]Everything's starting to move. Why is my eye bothering me? Apologize.

[00:14:26]We are off to the races, everybody.

[00:14:29]Apple down. Amazon down. ARM. What the [ __ ] This can't be right. ARM temper. That That's not right. It's still up from the other day. Is this even how you read this on Robin Hood?

[00:14:56]Salesforce 19459, Ethereum over 2000, IBM 314, 315, 317.

[00:15:10]All right, so you everybody probably cares about Palanteer. Palanteer is starting to run 15875. Can we get to 160? Salesforce not pumping.

[00:15:26]Microsoft 457.

[00:15:28]Gotta like that.

[00:15:32]Micron. Can we get over a thousand?

[00:15:36]Oh, we should get SanDisk on here. Good call everyone.

[00:15:41]SNDK.

[00:15:46]Is that not the ticker?

[00:15:49]SNDK. Why is it not coming up? Why am I getting the spinny thing?

[00:15:55]Why am I getting the spinny thing?

[00:16:09]I do agree with um Oh, you know what is I don't think AMD is on here, is it? No, it's not.

[00:16:22]What the hell is going on? Why can't I add AMD later? It won't let me add AMD. Can you believe that [ __ ] Can you believe that [ __ ] There we go.

[00:16:40]All right, let's get um Service Now in here.

[00:16:51]Do I have service now on here? I do. Oh my god.

[00:16:56]Service Now is pumping.

[00:17:00]13767.

[00:17:02]Look at this damn thing run. Holy [ __ ] Service now is Chris Patel is one happy camper.

[00:17:15]137.

[00:17:17]Let's go. Service now. Look at that. IBM 335. Holy [ __ ] Look at IBM.

[00:17:30]Absolutely crazy.

[00:17:34]I wrote I'm so dumb because I wrote I was writing articles about IBM at 120.

[00:17:41]Can sales listen if service now is at 137 I got to tell you Salesforce is the biggest screaming uh not going to use the B- word but I'll tell you what service now is undervalued everybody finally Microsoft getting some love 464 I love it Microsoft getting some love [ __ ] love it love it love it ARM 370 8, Nebius 237, oil is at 8960, Oracle 230, Next Decade 806, Nvidia can't hold a candle to ARM, but but 214 Broadcom 454 Broadcom helping me out.

[00:18:36]Broadcom is helping me out, everybody.

[00:18:38]You want to know why I may catch a mitt in the next two weeks? Maybe I catch Matt money.

[00:18:51]Curse words on the Lord's day. LOL poll to get Steve Sundays. I mean, I was live earlier.

[00:19:01]Forgive me, Lord. I apologize. I talk how I talk. You made me this way.

[00:19:08]Palunteer. Oh my god. Palanteer hit 160 everybody. Palunteer hit 160. It's breaking the f out. Let's go. Palunteer.

[00:19:22]I really would like Salesforce to move.

[00:19:26]That'd be nice. SoFi 1858. Micron 983. Reddit 17790. Everybody, let's go. Uber 7091, I ran 64, Meta 634, Amazon 270, Tesla 436. What's losing?

[00:19:56]Rocket Money 141. You really can't complain about that. ASTS 110.

[00:20:03]AMD 515. Lena, I don't think you can really be mad at that. I mean, can't really be mad at that, everybody. Th This is uh very exciting stuff.

[00:20:21]I'm with you, Rachel. LFG Nvidia, man. I don't know if I'm gonna stay up for Nvidia, but I'm excited. Maybe I will stay up for Nvidia.

[00:20:40]Um, IBM is investing in Quantum. It is up $40. Look, I'm standing by what I said. Everybody can get mad, but I'm standing by what I said. The reality of the situation for me, nobody's touching IBM and Alphabet.

[00:20:58]So, it's how I sit. SoFi is running up 2.69%.

[00:21:06]SoFi is running 1871. Can we do it? Can we do it?

[00:21:12]Are we going to 20 this week? Is Army going to beat Navy? If you know, you know. So 1872.

[00:21:23]Can anybody Does anybody know what the hell I just said? Is Army going to beat Navy? If anybody knows what that's from, you win a prize. I am looking at the chat. You win a prize if you know what I am talking about. Is army going to beat Navid Zeta? Holy [ __ ] Holy [ __ ] 2328 everybody. Let's go.

[00:21:56]Let's go.

[00:22:00]All right. So, Mike, you are halfway correct. Football and not is part of it, but when when did he what is it from? What is it from?

[00:22:19]Reddit 178.

[00:22:23]Got to love it. Gotta love it.

[00:22:29]No. So I'll say it. So in not when not was um giving an address at the National Football Foundation at the Bill Campell Symposium.

[00:22:41]He he it was part of his speech and he he said it in his speech. I I seriously think everybody should go watch it. It is uh the best speech I've ever seen him give. So I'll put a link later. It's incredible.

[00:22:56]Is Hood not on the list? Is that what everybody's screaming at me for? That I don't have Hood on the list? I'm boycotting Hood. I'm not allowed to boycott Hood. Okay, I put Robin Hood on the list. Everybody happy?

[00:23:21]95. Holy [ __ ] Hoodie Hood Hood is breaking the f out.

[00:23:30]Congratulations everybody.

[00:23:32]Congratulations.

[00:23:36]Sofi's gapping up.

[00:23:41]1888.

[00:23:43]Chels, thank you very much.

[00:23:47]1888. So he's gapping up.

[00:23:57]Oh. Oh. Can we do it? Let's go. Get past 200. I guess it did get past 200. I missed it, though.

[00:24:06]199. Oh, there we go. Salesforce 200 again. 200 again, everybody. I'm telling you, the numbers are just too damn good for Salesforce. I will go over the numbers before I end this. The numbers are too good for Salesforce 2011. Mark my words. Okay, mark my damn words.

[00:24:29]Am I going to say it?

[00:24:33]I'm going to say it. I think Salesforce is going to go to 300 at some point.

[00:24:39]There, I said it. It's too cheap. It's too cheap.

[00:24:44]Salesforce ain't done. 14.5 billion in free cash flow. It's not done.

[00:24:53]Attack of the SAS.

[00:24:56]That's what's going to happen. Attack of the SAS.

[00:25:00]SAS is back. We are not getting vibe code away. Let's go. Is Salesforce getting code away?

[00:25:09]Is Service Now getting code away? My crystal ball is gone. Everybody had to get the magic eightball.

[00:25:19]The magic eightball says yes. It's getting coded away. Holy [ __ ] You suck.

[00:25:25]Magic aball.

[00:25:34]Uh, you know what?

[00:25:36]If we get a fullon SAS rally, okay, I may get a Vanity license plate that says SAS man.

[00:25:50]Oh, that'd be [ __ ] hilarious.

[00:25:54]So, 1913, let's go.

[00:25:59]I feel like I'm at the track with Tommy Dimes right now.

[00:26:04]So is running running.

[00:26:16]Good thing I bought more. Man, I was going to I said to admit, should I sell some Nvidia and just buy like a ridiculous amount of SoFi?

[00:26:29]Maybe I should still do that.

[00:26:33]Maybe I should still do that. I don't know.

[00:26:38]Salesforce 204. Does everybody see that?

[00:26:41]Holy [ __ ] 204.

[00:26:54]Love it. Love it. Love it. Love it. Love it.

[00:26:58]IBM 326 service now 13666. Where's Matt money? Where is Matt money? Oh my god.

[00:27:06]Zeta 4.19%.

[00:27:11]Look at this. This is a good time.

[00:27:20]You know th this is I'm pretty excited everybody. I gotta say we'll say it.

[00:27:25]Service meow. Chris Patel is killing it right now. 137, IBM 327, ARM 380, Salesforce back down to 202.

[00:27:36]Can't be mad at it. SoFi is hanging out over 19. Oracle 235, Zeta. Zeta 2381.

[00:27:45]Let's go. This is why I did not write cover calls on Zeta, but you know what?

[00:27:49]Tomorrow we may. Tomorrow we may write some cover calls for the week at 26.

[00:27:56]Oh, this is fantastic.

[00:27:59]This is fantastic. Palanteer 161 breaking out. Microsoft 462.

[00:28:08]Hood. Can Hood get back to 100 is the question. How happy are all of you? Look at this.

[00:28:15]Just last week it was at 7255. Everybody look at this damn breakout on Hood.

[00:28:23]How can you not like that? Reddit wants to get to 180. Everybody thought I was crazy.

[00:28:31]Everybody thought I was crazy with Reddit. I'm telling you. The next one is Uber and Salesforce.

[00:28:40]Those are my next two picks.

[00:28:44]Micron 985. I guess it wasn't a top. I guess those people that said it was a top that I bought at 709 doesn't know [ __ ] Nvidia at 214, Irene 64, Uber 71.

[00:28:56]Look, Uber does 10 billion dollars in free cash flow. Okay, they're roughly 130 140 billion market cap. It is inexpensive, everybody. It is inexpensive.

[00:29:10]Oh, there he is.

[00:29:12]There he is.

[00:29:14]Where amit? You got to be happy. Hood is going to take out a hundred. I can feel it. May not be tonight, but this week I think it takes out a hundred. Got to love that pump.

[00:29:27]Got to love it.

[00:29:31]Reddit wants to take out 180. Look, Reddit can easily go above two. Easily. This thing is inexpensive. Monster growth. Nvidia 214.

[00:29:46]Don't hate me for this, okay? Don't hate me for this. Nvidia is gonna have a hard time getting to 250. Don't hate me. It just is. You can't have this type of rally. I mean, [ __ ] ARM is up 8% and Nvidia is stuck.

[00:30:06]Okay. Star coming over the top saying Reddit 300.

[00:30:13]I mean, that would be amazing.

[00:30:19]PNW at all-time highs. I don't have my list, but we can put it on the list in a minute.

[00:30:24]Uber just lost 71.

[00:30:29]Costco 958.

[00:30:34]Microsoft could hit 500 this week. Why not? Meta just turned the corner. 633 everybody. Meta just turned the corner.

[00:30:43]AMD 516 turning the corner. We don't have that many things down. We really don't.

[00:30:51]Riolab's holding 140. ESTs is 10978.

[00:30:56]Can't be mad. We can be mad about Amazon.

[00:31:02]It would be nice if Amazon turns the corner.

[00:31:07]All right. Alphabet 381, Spy 757.

[00:31:12]I gotta tell you, we see I think we see 8,000 this year. I think we see 8,000 this year.

[00:31:20]Uber 7097, Nvidia 214, Micron, I feel like Micron's going to take a thousand out this week. I really do. I really do. Palanteer is holding 160, everybody. Palanteer is doing it. It's holding it. Gotta like it. It's running.

[00:31:44]Does it get back to all-time highs?

[00:31:45]Maybe.

[00:31:47]Maybe. I mean, Palunteer's quarter was that damn good, everybody. It really was.

[00:31:58]I mean, look at this.

[00:32:01]I'm not a technical analysis person, but you know what?

[00:32:06]If Palunteer can get to 170, I think it can get back to 200. How about that? How about that?

[00:32:16]Broadcom 461. Zeta 2366.

[00:32:23]SoFi is trying to hold 19. We need SoFi to hold 19. Everybody, do not go under 19. Do not do it. SoFi, [ __ ] Just did it.

[00:32:34]Now we're back.

[00:32:38]got a little uh I don't know.

[00:32:43]I I think there's some stocks that are inexpensive, everybody. I really do.

[00:32:50]And I think we're going to see a rotation.

[00:32:54]Jake Rizzo is here.

[00:33:00]Jake Rizzo, everybody is in the building. Jake Rizzo, what do you think of the price action? We are pumping tonight. Pumping.

[00:33:14]Um, Jesse, I got news for you. I check off.

[00:33:19]No, this is not for kids. I don't change how I talk. Okay. You should see me at the casino. How about that? You get on a craps table with me, forget about it.

[00:33:30]It's a good time.

[00:33:35]Jensen at 11 p.m. I don't know if I can uh do it. We'll see. I don't know if I can do Jensen at 11.

[00:33:44]I mean, if all of you are going to be up. No, I won't clean up the fbombs.

[00:33:50]Don't tell me what to do.

[00:33:54]The last thing you want to do is tell me what to do.

[00:34:00]Zeta 2357.

[00:34:03]H love it. Love it. Love it.

[00:34:08]All right, everybody.

[00:34:10]I I do think that we have people realizing that the SAS trade was overdone.

[00:34:20]Salesforce at 168, 172 did not make sense. Service Now under 100 did not make sense. I don't even think it makes sense here. I really don't. I really don't.

[00:34:32]We'll go through the numbers in a minute. So 1893. Let's look at these uh le let's let's look at some numbers.

[00:34:41]Let's get out of this. Let's look at some numbers. Let's see how valued. What the hell's going on?

[00:34:48]Where did that noise come from? Oh, is that Robin Hood? Robin Hood making noise on me.

[00:35:05]CRM now workday.

[00:35:09]Um, what else is in that basket? Adobe, which you know it's Adobe I mean, these margins are incredible.

[00:35:27]It's hard. And now, keep in mind, Salesforce's market cap, 156 billion.

[00:35:34]156 billion for Salesforce, 104 for Adobe.

[00:35:40]When I look at the valuations on these, this is cheap. I mean, Adobe is by the numbers, if you believe that they're going to be around, Adobe should be a $600 stock by the numbers.

[00:35:54]Very inexpensive, tremendous amount of cash flow, 10.5 billion.

[00:36:01]How you can how Salesforce trades at 10.3 times cash from operations. Matt, why don't you come on, Matt, come on here. You have a link in WhatsApp. Come on here.

[00:36:16]15.2 billion cash from operations, 560 million capbacks, 14.7 billion free cash flow. Here's why I think things happening, everybody. Okay, here's what I think is happening. People are realizing that these are not just tickers. People are realizing that these are actually businesses with cash flow because that's what investing in companies is. And you should want to buy the companies that are producing the most profitability for the cheapest valuation, especially if there's growth.

[00:36:48]And you know what?

[00:36:50]I think that's what's happening. I think people are realizing, you know what?

[00:36:54]Maybe the people on X that are screaming SAS apocalypse, maybe they don't know what they're talking about. I mean, I've been saying they don't know what they're talking about it.

[00:37:05]I've been saying it. I mean, everybody knows my background.

[00:37:10]I can sit here and I can tell any of them exactly what happens on the back end.

[00:37:16]I don't think that any of them have been in a position where they've run very large corporate RFPs. I don't think that they have Salesforce and Service Now and Workday reps in their phone. I don't think that they have actually been decision makers at large companies. I have. And I'll tell you, oh, Pedro, you're too kind. Thank you so much. Really appreciate it. You know, I think Jake Rizzo is right.

[00:37:48]I think Jake Rizzo is right. I think that they took a short position and they tried talking up their book. And look, it's one of the times when I'm going to agree with Bur. I may have reservations about Adobe's business because I'm not as intimate with their platform, but by the numbers, this does not make sense.

[00:38:09]And here's the biggest part, and it all comes back to numbers.

[00:38:14]If we look at the forward valuations for Adobe Salesforce Service Now, Workday, I'm I'm missing something. What am I missing?

[00:38:26]Adobe, Salesforce, Service Now, Workday.

[00:38:31]I I was missing something, but the analyst community all thinks that these companies are growing their EPS.

[00:38:43]They're all growing their EPS by double digits over the next two years. How do you say that these are fairly valued at 10 times forward earnings and 20 times service for service now with 50% EPS growth over the next two years? At some point, you have to look at these as businesses and actually think about how businesses work and how the stock market fundamentally works.

[00:39:11]Uh the the software is my own proprietary software. It's not a website. It's my own proprietary system that I built. I am paying for all the data from uh FMP. It's not scraping anything. I have an API rolling in. It can do some pretty cool things. But let's look at we'll go back to the futures in a minute.

[00:39:38]People who did not want to buy this business. This is Q1. Okay. There is, and remember, there was a lot of people last week saying, "Oh my god, 13% year-over-year growth is nothing." Hey, when you're doing 11.1 billion dollar in revenue in three months and you're growing by 13%, that's an amazing number. Okay, it's an amazing number.

[00:40:02]Gross profit margin 76.9%.

[00:40:05]And I show like this instead of just the numbers because some people are visual.

[00:40:09]And you know what? I happen to think it's pretty cool. 21.8% operating income, 18.9% net income margin. The free cash flow in Q1 was $6.6 billion.

[00:40:25]Let's look at on a TTM basis.

[00:40:31]On a TTM, up 11% year-over-year on revenue. Let's look at the free cash flow. 14.7 billion.

[00:40:40]96% free cash flow margin off of operating cash flow. These are the types of businesses you want to buy. Or at least I want to buy.

[00:40:51]Listen, I appreciate everybody, but it's not becoming public. At least I don't think so. We can look at Palanteer.

[00:40:59]Look, Pal and we'll go back to the numbers in a sec. Palanteer is an amazing company. I think Palanteer is one of the best companies I've ever seen. It's not as bit and this is also an inefficiency in the market in my opinion and we'll talk about it. 68% year-over-year revenue growth on the trailing 12. That's incredible.

[00:41:21]Gross margins 84%.

[00:41:23]Net income margin 43.9%.

[00:41:29]Free cash flow margin of 99%. That's incredible.

[00:41:35]That means that when Palunteer gets to the point that they are doing 10 billion in operating cash flow, they're basically be doing 10 billion in free cash flow a year. It's incredible what this company has done. And if we look at on just a last quarter basis, growth is accelerating 85% year-over-year revenue. Operating income 46.2%, net income 53.3%.

[00:42:03]This is an amazing business. Notice how I don't say an amazing stock. This is an amazing business. But sometimes it gets ahead of itself. I'm not going to trust the Palanteer rally just yet only because of how rich the valuation is. And and this is where I get myself in trouble because if we just look at Palunteer versus CRM and look, I'm a shareholder of both.

[00:42:35]Okay, I have way more Palunteer than I have Salesforce. But at the same time, we have to remember these are businesses. Palanteer has a market cap of $359 billion. Salesforce 156 billion.

[00:42:49]Palanteer is more than double the size of Salesforce.

[00:42:55]Yet Salesforce's valuation is a clean sweep. And on a discounted cash flow value, 250 is the price for Salesforce. 1677 for Palanteer. Take discounted cash flow with a very big grain of salt.

[00:43:15]Revenue growth. Obviously, Palanteer is crushing it. Much bigger revenue and EPS growth. There's no question. That's why they're getting a premium. Margins are better. There's no question about that.

[00:43:28]Much higher return on equity, much higher return on invested capital. These are two incredible metrics and that is kind of why Palanteer is getting such a huge bid. But at the same time, I'm not saying pound shouldn't get a multiple, but should they get that big of a multiple?

[00:43:49]I mean, the numbers are the numbers.

[00:43:54]And when you look at the operating cash and you look at the free cash flow, I don't know that paying double Salesforce's market cap for a company that does a seventh or a six of the free cash flow makes a lot of sense.

[00:44:11]It's expensive. That doesn't mean it has to go down. But I do think we are seeing a rally in SAS because people are realizing these numbers just don't make sense.

[00:44:24]and Salesforce should be a lot higher.

[00:44:26]And we're going to go back in about one minute to the numbers. I I want to see where they are. I want to bring up Salesforce in the equity analyzer. I'm going to make a full video on this. So, I built a full-blown fair value equity analyzer.

[00:44:44]It's a 12-actor engine. It is a big methodology in here. And when I put in Salesforce, okay, my system and the methodology for it, I have it on fundamentals. I have it on the risk-free rate of return, cost of equity, the beta.

[00:45:06]I have two discounted cash flows for intrinsic value forward and a reverse the back test terminal value the bridge target multiple the fair value waiting starts at 45% discounted cash flow 55% multiples discounted cash flow weight fades the more the two methods disagree I mean I went really crazy with this and through do the reverse in because it solves for the free cash flow growth.

[00:45:41]Anyway, based on this, and this may not be right, this really believes the fair price of Salesforce is 383. Now, this may not be right, and I made it where if I was to disagree with the assumptions that it's setting, I can move the assumptions around and it makes the price go up.

[00:46:05]So discounted rate to the weighted average cost of capital target price to free cash flow. I mean look maybe it was on 32 I think maybe 32 32 times price of free cash flow is expensive maybe I think the target is 20 times I think that's much more realistic still 311 and I would probably say for Salesforce as a mature business 20 times price to free cash flow is more realistic margin of safety do you want how much do you want to meet beat the market by if we break down 15. What's the chance it can beat the market? So, I don't know.

[00:46:49]I also built the sum of the parts with expected value.

[00:46:53]I'm a nerd. I'm a nerd.

[00:46:59]So, this is the system. We'll use it more another time. Let's go back to Robin Hood and let's see where we are, everybody.

[00:47:09]All right. IBM 330, Service Now is holding the line in the sand at 136, ARM at 384. And I was talking some smack and I said I didn't understand why ARM was above 200.

[00:47:23]Salesforce is holding the line at 200.

[00:47:25]Oracle 235, Nebius crew is happy. 241 Nebus crew.

[00:47:32]Okay. So for everybody in the chat, please please please it is my own system. The system does not have a name. It is just my own system.

[00:47:44]It is not public.

[00:47:49]The big guy is here. The big guy is here. He's got to be happy. You can go catch our interview on his channel or my channel.

[00:47:59]Senor Endeott.

[00:48:01]Sofi did not hold the line, everybody.

[00:48:04]We got 1894, but you know what? We're gonna take it. We're gonna take it.

[00:48:10]1894. We're gonna take it. Palunteer 16250.

[00:48:15]You got to be happy about that. Zeta 2370.

[00:48:20]Everybody in the Zeta community, I'm going to have a surprise for you this week. Not going to say who it is, but I will be doing an interview with somebody from the community and I think we're going to put it out on Thursday. I uh we'll figure it out.

[00:48:40]Broadcom 460, Robin Hood 96. Oo 97.

[00:48:49]If Hood gets to 100 before I close out the stream, I will ring the cowbell.

[00:48:54]Mike, thank you very much.

[00:48:56]Amid has a bell and I have a bell courtesy of Mike who I again shoving matches with trying to pay for stuff.

[00:49:06]Guy's so generous. Can't let him pay though. Can't let him pay when I'm with him.

[00:49:13]Microsoft 462 Reddit 17970.

[00:49:18]Let's go.

[00:49:20]Can Reddit do it? I think it can.

[00:49:23]Everybody, I think Reddit can go back to 200. Want to know why? Because the numbers tell me it can. The numbers tell me it can. And I think that we need to really start looking at. And look, there's nothing wrong with buying moonshots. There's nothing wrong with investing in things that we h think have incredible alpha on the story, but the end of the day, these are all businesses, and not all businesses are made the same. Businesses have fundamentals from the financials. And you know what?

[00:49:57]At some point, the market becomes a weighing machine, not a voting machine.

[00:50:03]I think that Reddit's numbers are that good where it got sold off for the wrong reasons. I think it got extra hurt because of Meta, but I do think that Reddit's going to go higher. Now, Nvidia, let's spend a little bit of time on, sorry, spend a little bit of time on Nvidia.

[00:50:26]It's an incredible year.

[00:50:28]It always does this. At least it feels like it always does this. It was stuck and then it pumped, sold off, pumped, sold off. Are we going to get another pump? Yeah, probably. I don't know when, but I really don't believe the market wants Nvidia past 9% of the S&P. I really don't.

[00:50:54]Now, I I think Nvidia deserves to be 275 here. I really do. I think Nvidia is so undervalued.

[00:51:04]Trading at less than 15 times forward earnings, I think, is BS.

[00:51:10]What do I know?

[00:51:12]What do I know?

[00:51:15]Nvidia is one of the greatest companies in the world. There's no question about it. What Jensen does.

[00:51:22]BT, thank you so much. I appreciate it.

[00:51:26]Too kind.

[00:51:29]Broadcom is saving me. If we go to the I don't think that the uh stock draft is on uh the forward basis. Hold on, Matt. Do you know if the stock draft takes into consideration after hours?

[00:51:53]No, it doesn't. We're going to show it though.

[00:52:00]This is actually pretty funny. So, in case you're not familiar, emit, myself, Tanner, Matt, and Chris are doing a stock draft. We have three weeks left.

[00:52:12]We'll be running it back. My proposal has been accepted by all parties. Okay.

[00:52:20]The only things that are helping me are actually Broadcom, Crowd Strike, and Micron.

[00:52:27]And you know what, Matt? if you're listening, I may catch you. Just saying.

[00:52:34]Just saying.

[00:52:37]If Microsoft runs and if Salesforce runs and if Meta can run and if Micron can keep going, Matt, I got two and a half weeks. I may hatch you. We'll see what happens. We will see what happens. Amit may hatch you. Also, Emit's got a really good portfolio. Oh, I got to tell you, with Hood being where it is, Palanteer, he's got AMD in there.

[00:53:10]Nebas working for him.

[00:53:13]Aid Aid's got a chance of catching Matt also. I don't think Tanner and Chris can come back this year. It is Matt's game to lose at this point. He's got two and a half weeks to hold out. Tanner's not going to make a reversal.

[00:53:27]I don't think Chris will.

[00:53:30]Axon Elf. What can really move from here for Chris?

[00:53:41]I think Chris is going to be maybe 35 to 40%. I think his portfolio move a little bit, but I don't think it's going to be enough to catch Matt. I don't know. We'll see. We're We're gonna We're gonna do a few things for next year.

[00:53:58]Frogger Finn is in the building. What is going on, Frogger Finn?

[00:54:07]I don't know. I I need to catch a mid first. Who's in here? Who's Chris Patel is in here with me looking at stuff?

[00:54:18]Chris Patel is doing his research for next year. Look at that. Doing his research for next year, which next year happens in three weeks, everybody. I believe the 2026 stock draft will be held on June 20th at either 8 or 900 p.m. More to come on that. Chris is absolutely plotting. I can tell you he's been doing his homework all weekend. The group text has been going off today and last night.

[00:54:55]Let's go back to Robin Hood. All right.

[00:54:59]Service meow 13615.

[00:55:03]IBM 325.

[00:55:06]Broadcom, where are you?

[00:55:10]That's ARM. Broadcom went in my head as I was just talking about 460. ARM is 379. Salesforce 201139. Sofi, we got over 19 again. We got 19 on SoFi. This is why I can't go to a track.

[00:55:26]This is why I can't go to the track and I can only go to the casino so often because I get a little uh intense.

[00:55:36]Get a little intense at the craps table.

[00:55:38]Everybody.

[00:55:40]Oracle 235. next decade 822 Zetaland 2370 can we get back to 24 hopefully we can palanteer 162 Microsoft 462 Micron 99490 everybody 994 everybody is this the future show Ed Money wants to know yes it is emit is away he is not able to come and play.

[00:56:14]I stepped in though. QXO 1739. We're going to need rates. QXO is going to be a rate story.

[00:56:24]Um, the group text is going crazy right now.

[00:56:30]Oh my god. I'm gonna out Chris right now. You guys, is everybody ready? This is what Chris just texted in the group text. You ready?

[00:56:43]And god forbid MU takes off in Steve's portfolio.

[00:56:50]Chris was looking.

[00:56:57]Chris was looking.

[00:57:03]No, he did not. I'm not going to read what he just said, but that's hilarious.

[00:57:07]I'm ready. Let's go.

[00:57:10]Let's go, Matt Money. I'm coming for you. I am coming for you. I don't know if I'm going to get there. First, I got to get past admit, but you know what? I think that my portfolio may actually work out.

[00:57:27]And I was in dead last at one point.

[00:57:32]Red at 179.85. Let's get to 180. Reddit, let's go.

[00:57:37]Can we get Reddit 180, everybody?

[00:57:42]Reddit 180. 179.88.

[00:57:44]Let's go. Come on.

[00:57:47]180. You can do it. You can do it. Let's go. You can do it.

[00:57:54]179.88. Let's go. You can do it.

[00:57:59]Pounds here. 171 16170.

[00:58:05]Hood 9592 Nvidia just what do we think Jensen's gonna do? And yes, Joey, I'm with you.

[00:58:14]But you know what?

[00:58:17]Here we go.

[00:58:19]You ready?

[00:58:23]Maybe it's 1994.

[00:58:26]Maybe we haven't even hit 1995. Maybe maybe we haven't even gotten dressed for the party yet. We may not even be at dinner.

[00:58:39]We may not have even left the house.

[00:58:40]This may just go for 5 to 10 years. Who knows? Who knows?

[00:58:47]I have to stay live for Nvidia. I mean, let me talk to Canada. Let me see what he's gonna I really don't know if I can stay up till tomorrow's a long day. I really 11 o'clock keynote. I don't think I can do it. I really can't.

[00:59:09]Oh, running an auction style show. Just wait. Just wait. The I'm in talks about something. That's all I'm going to say.

[00:59:21]I'm in talks about something involving sports cards. We'll see what happens.

[00:59:27]See what happens.

[00:59:34]These people are not going to be up.

[00:59:36]Thanks, Charles. I mean, did MU hit a Oh my god.

[00:59:44]What time is it? 8:45.

[00:59:50]We did it. Micron hit a thousand.

[00:59:53]Everybody, let's go. Micron hit a thousand. Oh boy. Oh boy.

[01:00:01]Yeah, you got to love it, right? SoFi at 19. Micron at a,000. Zeta at 2369.

[01:00:10]Oracle at 233.

[01:00:12]Is this the most hated rally ever, everybody? Is it?

[01:00:17]Listen, I got neighbors. I don't want to really be obnoxious at 8:46 at night.

[01:00:23]Okay. I don't want to be obnoxious.

[01:00:31]I'm not going I'm not going crazy like a met.

[01:00:38]Whoa. Whoa. Hold on.

[01:00:45]Brian, I thought you said something else. I thought you quoted because I saw it really quickly. I thought you quoted Poolh Hall Junkies. I was going to be like, that's heroic.

[01:01:08]No, we're not going crazy with the cowbell. It's too late.

[01:01:13]No, no, no, no, no. I mean, so when we redid this place, I did put uh insula. I took a floor up and put a new floor in this room and put sound dampering below me.

[01:01:33]I mean, let me figure out a way if I can soundproof this room, then I'll get crazy with the bell.

[01:01:44]Oh my god. 106. Micron is doing it everybody.

[01:01:49]I thought it was a top when I bought. I thought it was a top. Should I get Chris going? Should I say to him um MU 106?

[01:02:09]I wonder if Chris is gonna say anything.

[01:02:17]Uh, maybe we can get Chris Patel on. Let me see if he wants to come on real quick.

[01:02:27]Do you want to come on the future show?

[01:02:37]Matt was too cool for school. I uh sent Matt the invite first. Matt never came.

[01:02:43]So, we'll reach out to Chris. We'll put the bat signal out. See if he says he wants to come. Doesn't look like he's sore yet, though. 1,100 by Friday. Why not, 1100 by Wednesday?

[01:03:03]I mean, this is uh I don't know. This would make me want to day trade.

[01:03:16]If I started a day trading show, watch out. You guys would be uh it would not be good. I can tell you that. I would have to really put the disclaimer out there. You're gonna hear fbombs and oh my god.

[01:03:34]All right. Service meow 135. You can't be mad that it's at 135, everybody. IBM 325.

[01:03:42]ARM 384. Where's Qualcomm? I'm going to be so mad. Is Qu is Qualcomm like over 300 now? I'm the dumbest person. Where is this damn thing?

[01:03:59]Okay, Qualcomm's at 246.

[01:04:07]All right, Apple 310. Rocket Lab, please hold 140. We want the space mob to do well. Please hold 140.

[01:04:20]AMD508, Ethereum 2015, Amazon 270, Siri, Sirius satellite radio. I have a theory about them.

[01:04:34]I think somebody's going to acquire them for their satellites.

[01:04:41]Yeah, Rocket Labs right here. It's at uh 140. We do not want that happening, everybody.

[01:04:50]We do not want that happening.

[01:04:56]Tesla 434, Amazon 270, Costco 955.

[01:05:04]What the hell is Nvidia? What do we think Nvidia is going to say tonight?

[01:05:08]What do we think they're going to say?

[01:05:10]Nvidia just got to 215. It's trying to do something.

[01:05:15]It's trying to go. Everybody, I wanted to Reddit 17980.

[01:05:29]17980. It's going. It is going, man. We're going to have a good week. I can feel it. Tommy Dimes. Tommy Dimes is here, everybody. Tommy Dimes, if you've been watching for a little bit, this is a small glimpse of what it's going to be like when we're on the crab stable together. My friends, you're going to have a good time with me shooting dice. I can tell you that. When we do the Miami meetup, you and I are going to the damn casino. I can tell you that. And I'm going to make some phone calls. I got quite a few friends down there.

[01:06:09]They you may even Tommy you I would not be surprised if you know some of my friends because they all hang out at the Hard Rock.

[01:06:20]Um we'll talk we'll talk Zeta 2368 Micron. Oh my god. Can we get to 1,0?

[01:06:31]Can we Can we do it?

[01:06:35]Chels. No. Miami in the winter, New York in the summer. It was 18 degrees when Emitt did his meet up in New York. We can't live through that again. It was freezing.

[01:06:49]Freezing.

[01:06:51]19. So far, we're at 19. This is good.

[01:06:55]I'm ready. I'm ready. I'm ready. I'm ready.

[01:06:59]All right. Salesforce couldn't hold 200.

[01:07:01]That's okay. That's okay. I really think I'm going to buy more Salesforce. I am uh super bullish. Oh my god, we did it.

[01:07:11]10 everybody. A,10.

[01:07:18]Micron is just going haywire everybody.

[01:07:21]It is running running. Nebius Crew 24290, ARM 384, Service Meow 13613, IBM 32650, everybody.

[01:07:40]Reddit 17967, Palanteer 16070, it's holding it.

[01:07:49]Where's Rocket Lab? 14060. Okay. All right. We can live with it.

[01:07:58]Thank you, Ed monies. Really appreciate it. Basis points is a pleasure to do. I love hanging out with him.

[01:08:05]You know, I I I I see Tommy Dimes is speaking my language.

[01:08:12]Tommy, I have a very serious question for you.

[01:08:16]I got beef with Meruranos.

[01:08:19]It's one of my favorite restaurants.

[01:08:21]Okay.

[01:08:23]But if we used to go there all the time and then one day the Sunday gravy wasn't on the menu anymore and I'm like what the hell's going on?

[01:08:35]They said they only do it on Sundays now. Is it like that down there? When Mtoanos was a Harris, we would go there all the time and we would usually go down during the week. Uh, usually Thursday to Saturday and then they moved it and Moranos only did the Sunday gravy on Sunday. Didn't make sense to me. Sunday gravy every day anyway. Anyway, what Lena you Oh, there we go. Tommy Dimes. Love it.

[01:09:11]Love it. Um, basis points needs to be 90 minutes.

[01:09:17]I'll talk to Aid about that. We'll see.

[01:09:22]I don't hate that. I don't hate that.

[01:09:25]But it's also with how we book it. So, we may have to talk to the studio.

[01:09:35]I don't think so.

[01:09:37]KC, I don't think so. I think Trump wants the rally. You want to know why?

[01:09:42]Fourth of July weekend, I think he wants to be able to tout Dow Jones 51,000, S&P close to 8,000 for the 250th birthday of the greatest country in the world.

[01:09:59]I think he wants to tout how good the market's doing. Don't forget midterms, okay? You ain't winning midterms without the market ripping.

[01:10:10]So, I don't think he's going to try to put the kibash on anything. I really don't. IBM 326, ARM 382, Service Now 134. It's okay. It's okay.

[01:10:23]Salesforce 19950. That's okay, too. SoFi 19. Thank god I bought more.

[01:10:30]I bought more at like 1650 something like that.

[01:10:40]I will add corewave for everybody.

[01:10:47]All right. Oo, Stevie did something smart buying core.

[01:10:51]It's at 114. 114.

[01:10:57]Awesome. Love it.

[01:11:02]Hollis, you could be correct.

[01:11:06]When Trump sells, that's the top.

[01:11:12]If SoFi gets into the S&P on Friday, I will have to do is some type of special stream or something.

[01:11:20]I'll have to figure out something special for it.

[01:11:33]What just happened?

[01:11:38]Oh, I must have moved that. There we go.

[01:11:41]I was going to say, why don't I see the prices anymore?

[01:11:45]1902 for SoFi, Core Weave 114, Oracle 234, Micron 107, Zeta 2369, Broadcom 458, Palanteer 160, Holding the Line, Hood 9635, Reddit 17975, I got to love that.

[01:12:09]Microsoft 45949, Nvidia 215. What do we think? What's the announcement going to be tonight? Do we think that he's going to talk about uh CPUs?

[01:12:22]Is that what we're thinking?

[01:12:33]You know what?

[01:12:35]If that's true, more CEOs should come on.

[01:12:39]Just saying.

[01:12:43]Zuckerberg.

[01:12:45]Mr. Zuckerberg, please come on. We would love to have you on Basis Points.

[01:12:53]I would even fly out to do the interview wherever you are. Mark Zuckerberg.

[01:12:59]Matt, why aren't you getting on here?

[01:13:03]Wait, are you in bed? Matt, are you becoming a sleepy little baby?

[01:13:09]Are you in bed? Is that why you're not coming on?

[01:13:20]So, basis points is not my own show. I talk how I talk on this. Basis points. I'm much more refined.

[01:13:32]And you know what? It is what it is.

[01:13:35]I try to tone it down, but sometimes I get excited.

[01:13:39]There's widows.

[01:13:48]And this is a good one. Would love to hear more content on how to build and maintain a portfolio. Seem you all have different strategies. Uh yeah, we could talk about that at some point.

[01:14:05]Not tonight, but yes, we could definitely talk about it.

[01:14:14]Sleepy time T.

[01:14:19]All right, Rocky Lab's holding the line.

[01:14:23]We need to draw a line in the sand. 140.

[01:14:26]We're holding the line right there.

[01:14:32]Qualcomm 245.

[01:14:34]Qualcomm may still be undervalued.

[01:14:38]I don't know enough about Noia. I'm not really following it.

[01:14:50]I know Emit bought it.

[01:14:58]I don't know. I don't know anything about it.

[01:15:07]Yeah, all Zuck had a Okay, there's a comment that made me stop in my tracks. I'm not going to say what it is. Anyway, um all Zuck had to do is not mention Metaverse and he mentioned Metaverse. If you remember, I said heading into earnings, this guy, all he has to do is not mention Metaverse and not mention Capex. Oh, yeah, I do. He didn't get my memo. He didn't get my memo.

[01:15:46]Oh, this is a great question. All right, we're shifting for a minute.

[01:15:57]You know what?

[01:15:59]This isn't what's the best movie of all time. This is what are you never going to get bored of? And that's a very hard question.

[01:16:08]Would I get bored of Heat? I don't know.

[01:16:11]I haven't yet. But you know what? I don't think I could watch that for the rest of my life.

[01:16:17]Could I watch Godfather for the rest of my life? Probably not.

[01:16:23]Could I watch Casino for the rest of my life? Maybe.

[01:16:28]Could I watch Wedding Crashers for the rest of my life? Yes, I could. Could I watch Catty Shack for the rest of my life? Yes, I could.

[01:16:38]Oceans 11? Probably. I don't know. I got to think about it. Very good question. I don't have an answer for you right now.

[01:16:46]I really don't. I I feel like it would have to be some type of like classic comedy.

[01:17:01]Micron running down a dream right here. Running down a dream. Amit, don't do that. You would not watch High School Musical for the rest of your life. Don't do that, Emit. Come on.

[01:17:16]Come on.

[01:17:19]Am I really gonna have to watch this movie to see if it's any good?

[01:17:26]Big Labowski's very That's a That's a good one. Should we set up a camera?

[01:17:31]Should I watch High School Musical and have a camera record my facial expressions and what I say?

[01:17:40]I may get cancelled for it. We'll see.

[01:17:45]All right.

[01:17:47]IBM 321 everybody we are absolutely crushing it we blew right through 300 Broadcom 458 Nebius 242 Service Meow is losing a little bit of steam but it's okay 132 you can't be mad at that Salesforce losing a little steam can't be mad at that 198 I think it should be over 300 that's just me Oracle 231 Coreweave 113. Reddit can't take out 180. It should. Let's see what happens. Nvidia, all eyes are going to be on Jensen tonight. Does he talk about CPUs? I don't know. I don't know. Nvidia should not be here, but it is. The only thing that makes sense, it's too much of a percentage of the S&P. Everything else is just too damn good. Reddit 17959, Meta 635, Palanteer is holding 160. It is holding 160.

[01:18:57]Robin Hood 95, Uber 71, SoFi 1868. It's losing a little bit of steam, everybody.

[01:19:04]Zeta 2328.

[01:19:07]There's nothing to complain about.

[01:19:09]Rocket Lab is holding 140. ESTs is holding 110.

[01:19:14]AMD is still over 500. This is a good night. This is a good week.

[01:19:20]The S&P at what point do we get S&P 8000? At what point?

[01:19:29]Ferris Buer's Day Off. Great movie.

[01:19:34]Great movie.

[01:19:41]TJ, if they announce that, you're getting a prize.

[01:19:50]That would be incredible.

[01:19:56]Um, did something just happen? I don't know. I'm going to Truth Social right now.

[01:20:05]Did Trump say anything?

[01:20:10]Trump did not say anything. We're going to the journal.

[01:20:19]Nope. Nothing on Wall Street Journal.

[01:20:22]Let's go to X. See what's going on on X.

[01:20:31]Oh my god. The Yankees explode for 13 runs in the third inning. Jesus.

[01:20:38]I did not watch the Yankee game.

[01:20:43]No, there's nothing going on right now.

[01:20:46]Look, it's overnight action. We came out of the gate hot. People are making money. Low volume. See what happens tomorrow. See what happens tomorrow. All right, we're going to do a final take, everybody.

[01:21:01]Got 10 minutes and then I'm going to call it.

[01:21:04]Micron 106, ARM 383, IBM 322, Nebius 242, Broadcom 457, Service Now 134, Salesforce 198, Microsoft 457, Nvidia 215, Oracle 231, Reddit 17,950, Meta 635, Poundier just lost 160, Robin Hood 9525, Uber 71, SoFi trying to get back to 1878 Zeta 2328.

[01:21:40]Can't be mad at any of this, everybody.

[01:21:42]Can't be mad at this.

[01:21:45]All right, I got to tell you, I'm super excited about the market. I'm super excited about the potential of a deal.

[01:21:59]And we'll see what happens. We will see what happens. I don't know what Jensen is going to announce tonight.

[01:22:07]Maybe he says it gets into memory. Maybe he talks about CPUs. I don't know.

[01:22:18]What movie is that from? Reckless Finance. What movie is that from?

[01:22:23]Tell everybody what movie that is.

[01:22:30]Come on. Somebody's got to know it.

[01:22:32]Thank you. Big short. Thank you.

[01:22:35]Thank you. Thank you. Jensen's on at 11:00 tonight. 11:00. I don't think I'm going to do it.

[01:22:43]I don't think I'm going to do it, but we'll see.

[01:22:47]I'm going to call Tanada. I'm going to see if he can get permission to stay up late tonight.

[01:22:53]Actually, you know what? Should we mess with Tanner?

[01:23:00]Let's see if he picks up.

[01:23:13]Captain Sleepy Time did not pick up. He put me right to voicemail. Captain Sleepy Time. Is he in the sauna already?

[01:23:21]I don't know.

[01:23:23]I don't know.

[01:23:26]I don't know. But the chances of Tanner staying up for 11:00, I was not pranking him. I was legitimately calling him to see if his sleep clock would allow him to stay up tonight. I was legitimately going to ask him that.

[01:23:50]Poor guy.

[01:23:52]I mean, he's like 28. He can sleep for 4 hours one night. He'll be okay. He'll be all right.

[01:24:11]Let's talk about your thoughts on New Jersey. I played for a full ride at St. John's.

[01:24:17]I got nothing against Jersey. I love Jersey. Jerseyy's fine.

[01:24:22]And when you say you played at St. John, I'm going to assume basketball.

[01:24:28]Um, by the way, I'm super excited about the Johnny's for this year. I think they're going to do really good. I am so happy that they are really going to put money into the basketball program. So excited.

[01:24:53]Is oil pumping right now? Hold on.

[01:25:01]Oil is I wouldn't consider this pumping.

[01:25:03]It's at 8968.

[01:25:06]I'm not going to consider that pumping.

[01:25:07]It is up, but it is not pumping.

[01:25:16]Uh, hold on.

[01:25:27]Oh.

[01:25:29]Oh. Who's this?

[01:25:33]Tanner.

[01:25:35]>> What's up, brother?

[01:25:36]>> You're live right now.

[01:25:39]>> Good to know.

[01:25:40]>> The people The people want to know something.

[01:25:44]Yeah, >> they want to know if Tanner, Captain Nvidia, Captain Sleepy Time, if he's going to get a pass from his sleep schedule to stream in video.

[01:26:01]>> Will his sleep schedule allow it?

[01:26:05]>> I'm getting a pass.

[01:26:06]>> Whoa. Everybody, we got,242 people here.

[01:26:11]Everybody heard that. Say that again.

[01:26:12]You're getting a pass.

[01:26:14]>> I will be live at 10:45 to watch uh Nvidia GTC Taipei at Computex 2026.

[01:26:24]>> Whoa, this is everybody. This is earthshattering news. Did you >> It is earth shattering.

[01:26:31]>> Did you sana it yet?

[01:26:34]>> No, I haven't.

[01:26:36]>> Whoa, whoa, whoa, whoa. So, this this is nuts, everybody. This is groundbreaking news. It is 9:12. Tanner has not signed and he's going to be live for this conference.

[01:26:51]>> Yeah. Yeah. Maybe I'll schedule it right now. Russia Russia sauna and then uh usually takes me about an hour to heat up, you know, get everything done, like do the sauna, shower, everything like that. So maybe I can uh maybe I can do both.

[01:27:10]>> Maybe he can do both. Everybody, maybe he can do both.

[01:27:15]>> Do you want to join us or what are you thinking?

[01:27:16]>> Well, us plural. Who else is going to be there?

[01:27:20]>> Jose.

[01:27:21]>> Oh, boy.

[01:27:23]I don't know.

[01:27:24]>> Is a It's an Nvidia gathering, I'm telling you.

[01:27:28]>> So, this is so classic. I just may want to lay on the couch and watch you guys on the big screen.

[01:27:35]>> Yeah. Yeah. You won't be watching much of us. It'll be like 15 minutes of us and then it'll be maybe an hour or two of uh Jensen.

[01:27:45]>> You think he's going to go for that long?

[01:27:48]>> Yeah. I mean, yeah.

[01:27:50]>> All right. So, the last question before I let you go and do what you need to do to get your mind right for this because look, you're you're going to be up till like midnight, 1 in the morning. I don't know what you're going to be like tomorrow, man. I mean, is your sleep score going to be under 70?

[01:28:06]It's gonna be a terrible stream tomorrow, but when Jensen talks, I gotta listen.

[01:28:11]>> Uh, and you know what? When we were talking or texting earlier and you were like, "Yeah, I don't know if I'm going to do it." I knew it was BS. Just saying.

[01:28:20]>> I really, dude, I I'll show you text with me and Jose. I probably decided that I was going to do it 15 minutes ago. I was back and forth with him, but he said essentially, "You're gonna listen to it anyways. You might as well do it when it's live." I'm like, "All right, >> he's right.

[01:28:38]>> I'm going to listen to it anyway."

[01:28:40]>> Love it. Okay, so >> you know what I'm listening You know what I'm listening to right now?

[01:28:45]>> No.

[01:28:46]>> I'm listening to Leopold Ashen Bronner.

[01:28:49]>> Oh god.

[01:28:51]>> This dude is I mean a literal genius.

[01:28:54]>> Okay.

[01:28:56]>> You know he went to college or or like like university. He was a validictorian uh at 19 years old. He went to college at 15.

[01:29:06]>> Okay. He's Doogie Hower.

[01:29:09]>> He is like, listen to the guy speak and uh if you agree with him, man, the bull market hasn't even started.

[01:29:19]>> Well, I I actually said 20 minutes ago, 25 minutes ago, that it may be 1994 and we haven't even gotten to the restaurant yet.

[01:29:30]>> Bro, it it's crazy. You know what? I I just saw a post from from Amit talking about how it's uh you know SAS is back and never bet against SAS and you can have your own opinions on that and stuff like this, but essentially what what Leopold is talking about in one of these interviews that he was uh in was that um you know soon we're going to have AI if it continues to creep up on this intelligence scale that it's not just going to be smarter than the average college student and which might be where it is right now. Uh but it's going to be smarter than the than than geniuses.

[01:30:09]Like as as um Daario said in his recent conversation with Dwaresh is that we're going to have a data center full of geniuses like a country of geniuses and it's going to get to a point where these are fully automated. They're making decisions on their own. In fact, human intervention with some of these uh AIs would be like essentially we would be the worst part of it. We would be the the the managers would be the dummies.

[01:30:40]How do you I'm curious if this is the outcome if intelligence scales with compute where like is there a downside to fully automated like um intelligence? Is there a cap to intelligence or is that just infinity?

[01:31:00]>> Infinity Skynet.

[01:31:03]>> But for real, >> I I'm I'm not kidding you.

[01:31:09]>> And if that's the case, why are you on your live streams looking at Salesforce?

[01:31:14]>> Because Salesforce should be over 300.

[01:31:18]>> Okay. All right.

[01:31:19]>> I mean, it trades at 11 times free cash flow.

[01:31:23]>> I get it. I get it. But maybe maybe then I don't have 11 years of cash flow.

[01:31:28]>> H beg to differ. Anyway, >> yeah, >> I am going to let you go. You need to go prep. Tell tell everybody what time again you'll be live.

[01:31:41]>> 10:45 p.m. Eastern Standard Time.

[01:31:43]>> All right, there you have it. When you go to >> I don't >> I don't know if you've seen any of the not leaks, but like the potential rumored products that they're looking at releasing. Mhm.

[01:31:54]>> Pretty interesting.

[01:31:56]>> Well, you're going to tell everybody all about it. And when everybody goes to Tanner stream at 10:45, put Captain Sleepy Put Captain Sleepy Time in the comments.

[01:32:06]>> All right, >> I'll >> let you go.

[01:32:11]>> Later, Tanner.

[01:32:14]All right, everybody. We got a special guest who is here. We're gonna we're gonna keep the stream going for a little bit.

[01:32:23]Tanner will be live tonight at 10:45. I will not be joining Tanner, but wanted to get Chris Patel on for 10 15 minutes.

[01:32:34]Talk about two very specific things. How does it feel to be Chris Patel right now? And don't use the word vindicated because you cannot keep that smile off your face. How good feel to have service now over 131 and a half?

[01:32:50]Listen, I just want to say I don't care nearly about the money.

[01:32:57]Even though the money is nice, like it's really nice to look at and see what's The money is nice.

[01:33:02]>> But I think but I think the >> the validation of just trying to comfort people through the misery while this was like in the 80s. I think that's the part that like got me got me the most because it was like everyone was really down on SAS and thinking like oh SAS was just going to disappear and I'm like me and you we we literally held people's hands when it came to keeping faith with SA the SAS market you know and I think uh I I think we have to remember that you always have to look at this from the angle of like a business right like where does the business value end Like and I was talking to one of my friends about this because like we went to lunch with him. He's my accountant.

[01:33:47]So we went to lunch and he was like, "Man, I'm thinking about selling service now like and I'm thinking about selling all my SAS names because they're all going to get disrupted by AI." And I said to him, "Look, you know, like we were kids back in back in the dot era, right?" So I was like, you know, do you remember that time how Cisco and all of these hardware names were just absolutely running? He's like, "Yeah, I remember that." And I'm like, where did ultimately the value of the internet pool to? It ended up pooling to Gmail.

[01:34:15]No one woke up in the morning and said, "Let me check my router to see what my emails are like." Right? No one said, "Let me check my uh let me check this, you know, my internet connection to see if I got uh I got like a what is that thing called? I I could go to a website and search." No, the application layer where is where all the value is gathered. If you look at your phone, the value of this phone is not the hardware, it's the iOS software that's on it. So, it's the same exact thing. AI is going to come, AI is going to provide all of these crazy benefits, but all of the value is going to end up at the software layer. Yes, the hardware will go towards supporting that. I I am not denying that. I think Nvidia is going to do well. I think AMD is going to do well. I think all the hardware players, they're going to do well. But at the end of the day, no one's going to say, "Yeah, let me buy that GPU." No, everyone's gonna say, "I need to log into my favorite application to do my job." For me, it's Service Now. For you, it's Salesforce.

[01:35:12]You know, for for a creative person, they're not logging into five different applications. They're not going to claude and saying, "Hey, I need to edit an entire video. I need to do color saturation and and all that." They're going to go to Adobe. So these businesses have built such a strong moat around the user that most users they're not going to switch away for what something that's vibe coded and you and me we've been vibe coding for the last couple of weeks. So we've we understand that there are a lot of limitations when it comes to trying to develop things. If anything I think I think this actually makes the moat even higher for SAS because all of the SAS companies will be able to move at a much much faster pace.

[01:35:55]a new a new a new company comes around, they have a they have a really featurerich product that they see that is gaining traction, they're just going to vi vibe code the same thing, sell it at a discount and now all the all of a sudden that smaller niche player is going to get destroyed, you know. So SAS SAS ultimately in my opinion is going to benefit and I think the market is slowly recognizing that and you know I think most of these companies are going to end up at all-time highs eventually. Um, I can't say at what pace they're going to end up. You know, it might slow down. I think we might even get some, you know, profit taking here and there, but overall, I think we have really good pri entry prices and just just hold it, you know. And I think the run up, I know people are probably going to be like, man, I missed that initial 50% run higher. No, you're talking about literally businesses that generate so much free cash flow. They buy back so many of their shares. This thing has a lot of legs to run up. I think at some point it'll get so high that your future returns are probably going to be like market market level returns. But even if you got in I think it's service now at like 130. Dude, this thing was trading at like 207 less than 6 months ago. Just think about that for two seconds, you know? And this is this is while their business has actually gone up 20 30% since then with shares that have been bought back. And then if you go out two years, you can see that their projections are we're going to do 30 billion in revenue in the next three years. That is the level of visibility that they have. And at the same time, they're like conservatively we're going to do 30 billion in revenue. Is that a business that's going anywhere to you, Steve?

[01:37:36]>> No. No. And and here's the big thing that everybody should at least consider.

[01:37:45]AI is amazing. AI is going to change the world. Anthropic and OpenAI are going to do phenomenal. Hardware is going to do well. When the inflection point comes of when capex goes into maintenance mode, we don't know yet. It could be two years, could be five years, it could be seven years. Nobody knows. But >> we're not using hardware to do things. Hardware is the tool to build everything that we are going to use. You're still going to use some form of software. The question becomes, is it going to be something new? Is it going to be something that's internally built or is it going to be something that just got infinitely better? My take is the same that it's been service now workday Salesforce your enterprise level will always be there because one contractually you can't get out of them two the audit trails the data the sock two reports but three they have unlimited budgets so what a company may give 20 grand to two engineers to build something service now workday Salesforce they have unlimited token budgets with topof-the-line engineers They're fortifying and they're building and they're going to be able to build things that are light years better. So, >> I'm not worried about it. Enterprise software, I think, is going to be fine.

[01:39:09]And they'll probably be new companies that emerge. There always is.

[01:39:15]>> But that doesn't mean that these companies are going to die. It would be very hard to come in and try to compete with a service now or a workday. Very hard. They have established modes and familiarity with everybody using it.

[01:39:31]People look, if it's not broken and you're getting good value, you're not ripping and replacing even just to save 5%. You're just not doing it. It just doesn't happen. The undertaking, I've gone through it is crazy. Nobody's doing that for 5%.

[01:39:48]Not only that, but you know, if you if you look at AI, how it works, you have to feed the AI information and data, these businesses have literally 15 years worth of corporate data. Every ticket that you ever put in is in there. Every user that's ever logged in is in there.

[01:40:06]Every client that you've ever had is in there. Every marketing campaign that you have is in there. Like, your entire corporate business record system is in there. So to think that AI is somehow going to be able to take that away. No, AI is actually going to work really well because you have all of that historical data sitting >> going to make it better.

[01:40:28]>> It's going to make it better. And like if you're >> How many people are in your department, Chris? A lot of people, right?

[01:40:34]>> Yeah.

[01:40:35]>> Okay.

[01:40:37]If you change, you have to retrain everybody. Everybody knows how to use what you're using.

[01:40:43]>> Yeah. There's no reason for us to switch. There there is a corporate expense to switching. There's a learning curve. There's a backfill.

[01:40:52]>> It is just it's business 101. And unless you're in the business, I don't fault anybody for having this notion that AI is going to cannibalize these things.

[01:41:03]I fault everybody that actually knows better for not standing up during the [ __ ] That's who I fault >> because I don't expect everybody to know what I've seen with my two eyes. But I do expect everybody that actually lives and breeds it to say, "No, you guys are wrong. This is why."

[01:41:19]>> Yeah. Yeah. Yeah. I just I I think right now a lot of people have have done really well with semiconductors. And I think a lot of those people are saying, "Look, I clearly see the money rotating into this other part of the market." And I think the president sort of helped with that too a little bit because when he bought into service now, when he bought Adobe, he bought uh uh CRM, I think that kind of gave permission to a lot of people to say, "Wait a second, the president of United States, clearly the guy who's made a lot of these other things rally, he's in this stuff." So it it's sort of like this I don't even know how to describe it, but there's like this confidence boost that everyone got.

[01:42:01]And so now everyone is rotating and not rotating it's and I don't think it's going to be like a massive rotation where everyone sells every s uh like semi-name but a lot of people are going to say you know what I've had a good run on semis it's time to you know diversify a little bit and clearly if the narrative especially in the next few quarters is actually proving out to be the opposite people are going to have confidence. Snowflake honestly we we should all thank Snowflake. Snowflake had that monster quarter and just like it's almost like a snap of the finger and just woke everyone all out of their like collective delusion, you know? It was just like whoa, what the hell? What do you mean? Like SAS is not getting disrupted. SAS is actually going to make a make a all-time high again. So everyone who's everyone just like [ __ ] it, pile in. And I think now the market is recognizing it. And I think I think the cat's out of the bag. I wouldn't be surprised, honestly, Stephen, if in the next 13Fs that we look at, we see a lot of the super investors, they probably loaded up last couple of quarters.

[01:43:06]>> Yeah, I wouldn't be surprised.

[01:43:08]>> Yeah, I think everyone I think everyone always looks at the 13Fs. The problem is the 13Fs are backward looking and the thing is there's this massive delay. So, you could have started off in January, February buying a lot of names, but you're not going to know until probably May or June, right? And so SAS could have bottomed this quarter and a lot of the people could have been buying this quarter, but we're not going to know this stuff until probably the middle of uh the middle of the summer.

[01:43:34]>> Well, how about Mcder and Ben off backstopping their own stocks.

[01:43:38]>> Yeah, dude.

[01:43:40]>> They're putting a floor below it right now still.

[01:43:43]>> Yeah. 50 freaking billion dollar buyback.

[01:43:46]>> Insane value if you think about it for a company that's worth what 140.

[01:43:50]>> And how about this? That wasn't Benov's decision. That was the board of directors authorizing it.

[01:43:57]>> And that's not Beni off having an ego.

[01:44:00]He cannot make that decision unilaterally. He needs board approval.

[01:44:05]Look at who's on Salesforce's board.

[01:44:07]Okay.

[01:44:09]>> They're not doing that. You drinking a little mojito there.

[01:44:14]>> What's mojito?

[01:44:15]>> I love it. My wife is >> My wife's mojitos are amazing, dude.

[01:44:20]She's become an expert at it. Yeah. I got a question for you.

[01:44:24]>> Mhm.

[01:44:24]>> Do I have a chance at catching a mitt and then Matt?

[01:44:28]>> I listen. If another rocket explodes, I think you're good. I think I think Matt needs a couple of rocket explosions and you're good. Like the Blue Origin thing took him down a little bit cuz he's got that rocket lab position. Um but we'll see what happens. But I don't know. I don't know. It'll be >> I was in dead last. Okay.

[01:44:47]>> Yeah.

[01:44:47]>> For a long time. And now, and this is not updated with the after hours numbers from tonight, >> right? No, no. So, Microsoft.

[01:44:57]>> Yeah, >> I I may I may catch a mitt.

[01:45:02]>> You may >> I may I don't know if you'll catch uh I don't think you'll catch Matt, but you'll definitely catch a mit for sure.

[01:45:08]>> I may catch. Maybe not Matt.

[01:45:11]>> No, maybe not even because got Palanteer. So, Palanteer is probably going to benefit from the SAS rotation, too. So, who's going to benefit from this? And he's got Nebus. So, well, Nebius is maybe maybe Nebius, but I think Palanteer will definitely >> bump him up a little bit uh tomorrow.

[01:45:27]You've got literally most of your lagards are the ones that are going to be flipping on you. So, >> Microsoft, >> Crowd Strike's doing good. Netflix, Salesforce. I mean, if Micron keeps going, if Micron can get to 1300 in the next two weeks, >> I don't know. We'll see.

[01:45:48]>> I'm excited for >> the next draft is what I'm excited for.

[01:45:52]>> Me, too. I've already started planning.

[01:45:54]>> I know you have.

[01:45:54]>> Like, >> this time around, I'm going to be prepared. Like, last time I was just [ __ ] around. You guys didn't give me a lot of time, so I was just like, "Okay, whatever. I'll play. I'll I have a nice defensive, you know, situation."

[01:46:05]No, I I've got I've got a portfolio ready for you.

[01:46:08]So, just so everybody's aware, >> we actually have official rules this year.

[01:46:15]It is been, I believe, accepted by everybody.

[01:46:20]And, uh, it's going to be really interesting to see what happens.

[01:46:27]>> Yeah. Yeah. We'll see, man.

[01:46:29]>> I'm ready.

[01:46:32]Ah, Jesus. Yeah. I I feel so freaking good just because of the vindication.

[01:46:36]And not to mention my brother, he loaded the boat on Service Now. So, he's doing really well. I called him like right before this. I was I I told anyone who's like a real friend or someone that's close to me. I've had that personal one-on-one conversation.

[01:46:53]And I've had like the pleasure of just going through everything, breaking everything down for them, just saying, "Look, I I use the product. Like, this is what it is." And you know, the easiest one is my brother because like I've helped my brother go from like, you know, like four figures to five to six and now seven. So it's like he's he's like, "Bro, you've Well, I mean, to be honest, Steve, you kind of helped me too because you're the one who pitched SLG to me." And same thing with uh Verizon.

[01:47:20]So when you said Chris like you so for anyone that knows we have like a private like me uh me and the guys we'll just randomly talk about stuff but me and Steve we talk even more private.

[01:47:32]>> So we always try to we we use each other as like therapy. It's like group therapy most of the time.

[01:47:39]>> And it's also to make sure that we're not >> looking at something the wrong way and just to make sure that our theory makes sense. That's the other thing.

[01:47:48]>> Yeah. What's funny is so me and Steve are it us it started off mainly because we were both bitching about Palunteer like we're just like yo can you [ __ ] believe this carp can you [ __ ] believe palunteer what sty like what prices I'll wake up one morning and I'm like okay what is it can you [ __ ] believe what price is at and I'm like god damn it no Steve just don't tell me man I'm getting sick of sick of this so me and him would have like back and forth gripe sessions about it but then we also like me and Steve have a lot of fundamental investing principles that we kind of stick to, right? We we aren't just like we don't just chase the thematics. We t tend to look at the business. We look at the fundamentals, the cash flows to see like, hey, is this a business that's just basically going up because it's just a theme or is it because there's actually real fundamentals to this company? Because if a company has real fundamentals behind it, like you can hold it, you know, you could you could let it just do its thing. So, a lot of times I know the companies that we look at sometimes they come off as boring. I know people hate that. They'll be like, "Verizon? Like really? Like that's boring? Who wants to talk about Verizon when you've got like other companies making all-time highs?"

[01:48:58]But me and Steve have done really well on Verizon. Like me, especially because I levered up via via options because it's such a low beta name. One of my biggest winners over the last two and a half years has been Verizon, you know.

[01:49:11]So, it is what it is. But the point is me and Steve are are very much aligned in our thought process when it comes to SAS. I think SAS has a lot more legs to go from here. Um >> yeah and so you know even now I don't think I don't think I don't think Service Now at 131 is expensive. I think it's actually still a good value. There will be a point where it starts to hit some ceilings, right? And it may actually pull back a little bit, but I don't see that just yet. I think it's from the trends that I'm seeing. I think I think this thing carries over 150 170 175 is like my fair value target. What about you?

[01:49:52]>> Yeah, I'm probably 160ish around this area, but if we're talking 1 to three years, I mean it's 200 plus.

[01:50:04]It depends time frame. I think shortterm is around that 160 170 area. I could probably get to 175 because of the growth rate, but >> yeah.

[01:50:13]>> Yeah. I mean, the Service Now is a great company. I I know the product. I've talked to a lot of people in it. I mean, it's just it's that product. So, I feel good about it. But >> yeah, the one thing I'll recommend to all of you guys, I know someone in the chat said, "I bought service now at 89 and sold 105 calls."

[01:50:36]Guys, I don't know what your own personal investing situation is, okay?

[01:50:41]But I have seen plenty of people lose a ton of opportunity cost in trying to sell covered calls. I'm not saying wheeling is not a possible possible way to make money, but honestly, I've seen more people become wealthy by actually buying options, holding them, than trying to sell and do covered calls and, you know, make a little bit of money here, a little bit of money there.

[01:51:10]The reason why I say that is because you're literally subsidizing the risk for somebody else. That's all you're really doing when you're selling an option. And I think I think Steve, you you you're like a perfect example of this. How much more money have you would you have made over the last few years had you just not done any option selling a >> little bit?

[01:51:31]>> Yeah. So especially on over I would say on over over >> if you want if you want to play the option game the liquidity in the high beta names is incredible for the option market. It gives you everything because of the volatility, but you can't predict cycles. The better way, in my opinion, you pick something boring like Verizon that's paying you a dividend and you write an option out three months, so you collect a little bit more premium. I used to do it on Omega Healthcare all the time and it's not it's just not worth it on companies like Nvidia, Palanteer. It's just not worth it.

[01:52:16]>> Yeah. I mean, the thing is there are times where covered calls make sense a lot of times, but that's after like the stock is hitting some kind of crazy all-time high and you're just like, you know what, I want to protect my downside. And I've done that, too, where what I've done is sell a covered call at a at a significant premium and then I've used that to basically buy some defensive puts just in case. One of the reasons why I got stopped out of Palunteer and you know why Stephen because I I publicly disclosed it >> is because of covered cause. I got cute.

[01:52:49]I was like oh well you know Palenteer just keeps going and what happened all my shares got taken away from me and now I could not >> control myself enough to just buy back into the company you know because I was like oh it's going to pull back it's my cost basis.

[01:53:05]Oh you know it's it's it's beyond my cost basis. I want to get it at a discount. And what happens? I never got back in. and now I just missed a 20x return. Right? So, I'm I'm speaking from personal experience. Just let y'all know like in my experience, covered calls have rarely ever set a situation up for me where I've been able to like capture most of the upside and and basically instead I've always given up so much opportunity cost that way. And the and I think the tragedy of it, the biggest tragedy for me is that if let's say it does go beyond your covered call and you roll it out, then it starts this freaking level of anxiety all over again >> and and this cycle of having to roll.

[01:53:48]>> Yeah. Yeah. And it's that it's it's psychology, you know? It's like, "Oh, I rolled and then it goes beyond your roll and then you roll again and it goes beyond your roll and then it goes again and it's and it's the sad part is now you're praying that it goes back down again so you can get back in again, but it never does. The business fundamentals keep improving and everything just, you know, and you miss out. And so you sometimes have to you sometimes have to, like I said, create strategies that work for you. I will I'm promising myself to never sell covered calls ever again. not doing it unless it's some kind of crazy premium that you're getting and it's because like it's just the market is [ __ ] and you're getting this amazing premium and you're not really risking much and it's a very very short-term call maybe then but I'm just going to stick to buying stock maybe and stick to buying calls and buying spreads and I'm okay with that. I've defined my career with my strategies. I know what works for me.

[01:54:48]I know what doesn't work for me and I think that's what's going to propel me to like another level. You know what I mean? Not that I'm not at a good level, but I if I want to get to even a better level, I I have to find the things that I do well and I invest that way and then I like I said, keep capitalizing. So, >> I think that you uh I mean, look at this.

[01:55:13]>> That's sad. I'm sorry, man. Yeah, that's the game you play. I think that this is very true. They're a good way to cash out when you want to sell.

[01:55:24]>> Yeah. Yeah.

[01:55:26]>> Think that's a good good way to put it.

[01:55:29]So, >> all right. We have one last thing. I want to go over the official rules since we have uh a lot of people here. The year 2 stock draft. This is what has been proposed. The draft order and rotation will be however year one ends and it'll be roundroin. Everybody picks at the at each slot twice. We will be incorporating long or short. Every pick declares long or short direction locks in as you draft. Two people can have the same stock, but it has to be different directions. Chris could pick uh service now long. I could pick service now short. We cannot switch them in the middle. Has to stay. But >> we are doing trades at any time during the year.

[01:56:26]Two team managers can agree privately on a trade. They have to make a joint public announcement in the group chat and the commissioner will then update it on the official sheet within 24 hours.

[01:56:39]The realized P&L stays with the seller.

[01:56:42]When you trade away a position, your gain or loss stays with the trade and the new recipient takes in the position at the trade date price at a fresh cost basis at the end of that day and starts at 0% from there.

[01:56:58]So that will become a slot total return.

[01:57:02]There will be quarterly rebalances and each person gets to discard and pick up two new companies.

[01:57:10]Same way as if you're paying playing five card draw, you get to discard discard cards.

[01:57:17]um schedule I believe we're doing uh June 20th for the draft and then quarterly rebalancing December I'm sorry September, December, March and uh that's really it. I think Chris is going to be very happy. I feel like Chris is going to be the one that has one or two shorts in his uh portfolio. I might I might have a couple.

[01:57:43]>> I think he may. I have one that I may go short on. Also, >> the only the only problem with shorting to be honest though is like the the short you have to be so right on the timing and then also at the same time >> and then the limit is like your your upside is capped, right? So like here's an example like let's say I would have shorted any company >> even if I shorted.

[01:58:05]>> Right. Exactly. So if you look at it micron what did Micron do? Got 700% for you. basically erased every single one of your losses, >> right? There was no point where you can do 700% >> loss on a short. The max you can go down theoretically is 100%. In order for you to get to 100%. You got to have that business be an absolute [ __ ] go. Like it it has to go bankrupt. And what's funny is these days, every time anything gets over over like sold, there's a waiting group of people willing to put in money to basically keep these things alive like zombies >> because they've been waiting for it for so long.

[01:58:43]>> Yeah. So, >> we'll see.

[01:58:47]>> Look at Look at what Tavis said.

[01:58:50]>> Where's Tavis?

[01:58:52]>> Not Teavis. Sorry. Uh Tanner.

[01:58:53]>> Tanner.

[01:58:54]>> Look at what he said. How do I use margin in the draft?

[01:58:56]>> We're not using margin in the draft.

[01:58:58]>> Yeah, that's a bad that's a bad habit for people. Don't ever use margin.

[01:59:02]Margin is the one of the worst decisions you could make. It's probably worse than covered calls to be honest with you. At least with covered calls, you're capping your upside with margin. Anything happens in the market that's unrelated to the company and it goes down. Let's say Liberation Day or or what we just had with the Iran war situation. instead of being able to buy the dip, that freaking call that uh that margin ends up selling your positions of right from under you, especially if you use too much margin.

[01:59:30]So, nah, never use margin. Margins, the only time margin makes any sense to me whatsoever is let's say I have cash coming in in like a month or two and I want to buy a stock, right? But at the same time, like I just, you know, I know the cash is going to come in. That's the only time where I'll use margin. But if I don't have cash coming in, I do not speculate with margin at all >> for me. It's not worth it.

[01:59:57]>> Yeah, >> it's not worth it. All right, we're going to call it. Chris, thank you for coming on.

[02:00:05]>> Yes, sir.

[02:00:06]>> I will text you. We'll figure out what we're going to talk about tomorrow night.

[02:00:10]>> And uh actually, you know what? I I I I think I have something I'm going to pitch you tomorrow.

[02:00:17]Okay, >> so everybody, Tanner will be on in an hour with Jose for the Nvidia keynote. I will be uh watching from the couch.

[02:00:28]Please spam Tanner with Captain Sleepy Time. I can't believe he's staying up.

[02:00:34]He's going to be a mess tomorrow. That sleep score is going to be an F for failing.

[02:00:39]>> No cold plunge tonight. No cold.

[02:00:41]>> No, he's sauna. He's in the sauna right now. and him and Jose are going to stay up from like 10:45 to 1:00 in the morning listening to the Nvidia conference.

[02:00:51]>> All right, nice. Enjoy. Wait, in Taiwan, right? They're going to announce I think the the the app like what is it called?

[02:00:56]The Nvidia PC or something like that.

[02:00:58]>> Yeah, the CPU probably.

[02:01:00]>> Gotcha. All right, cool. I'll be I'll I'll be working tonight, so I'll probably watch it, too. So, >> yeah, I'm gonna have a good one >> later, guys. Take care.

[02:01:09]>> Take care.

[02:01:10]>> Thank you everybody for joining. Really appreciate. We have a green evening across the board. A lot of companies doing well. Emit will be on tomorrow at 8:45 in the morning. I will be on at 11:30 tomorrow. Tanner will be on in an hour. Have a great night everybody. Eat your ice cream, drink your milk, and I will see you later. Thank you.