Frank Curzio 00:00

Hey, how’s it going out there? It’s Wednesday, November 11. I’m Frank Curzio, and this is the Wall Street Unplugged podcast. We’re breaking the headlines and telling you what’s really moving these markets. Daniel Creech, are you ready? This is going to be our best podcast of the year. Expectations are high. You’re going to get a million and a half ideas. I counted them individually. Get your pens out. We’re breaking down everything in the markets. I’m fired up today for some reason. How are you doing?

Daniel Creech 00:29

We’re on a roll. I’m great. Another beautiful day. Literally beautiful.

Frank Curzio 00:32

Yeah. I don’t know why I’m fired up with this market. I do want to start with this, though. Today is Veterans Day, and I want to say thank you to all the veterans. Thank you for the courage and the strength, and for the sacrifice that provides the freedom for all of us as Americans. In today’s day and age, so many of us take that for granted. I know it might be difficult, with so much coming at them through the media, for a lot of the younger generation. They’re very confused, and they’re being taught to almost hate this country when they really don’t know or understand what that means. There are places where women have no rights, where people get executed for saying the wrong thing, where families don’t have access to water. Here, you can walk outside and be safe with your children, and you have the ability to work hard and be anything you want. Those are privileges given to us by the people who protect and serve. No matter what side of the aisle you’re on, putting our differences aside, every American needs to be grateful to our veterans.

Frank Curzio 01:34

For me, the past couple of years have been very personal. I’ve gotten to know so many veterans and subscribers, and I’ve gone to the National Security Seminar and met so many brilliant people. I’ve been there when the colonels graduate, and I’ve really learned what these people do behind the scenes. A lot of times people take it for granted, but we really need to thank our veterans. I just wanted to start with that right away. So, happy Veterans Day.

Daniel Creech 01:59

Absolutely. I’ll second that as much as possible.

Frank Curzio 02:02

So let’s talk about these markets. A few weeks ago I had a post on Twitter that got hundreds of thousands of views. It was basically me ranting about how this is the most dangerous market I’ve seen in over a decade. Some people said, “Well, Frank’s always negative. What do you expect?” And one guy said, “By the way, I knew your dad,” and he was nice at the end of it, but I got some crazy comments. Our Twitter handle, which is X now, @FrankCurzio, is really blowing up, with so many people following us, which is great. But I was serious when I said it’s the most dangerous market I’ve seen in over a decade. It wasn’t a headline, and I didn’t know how many people were going to click on it. We’re seeing companies get annihilated, especially in AI. These are companies that beat and raised this earnings season, and they’re selling off an average of 2% when they do. I think that’s the second-worst trend in 15 years.

Frank Curzio 02:02

I read that someplace. Usually, if you beat and raise, your stock goes higher. If you report earnings and sales in line, you get hit. And if you report weak guidance, you get annihilated. We’ve seen a lot of it. AMD is a good example. Early in the week it reported great numbers, really blockbuster earnings. The stock was up that day, then came down and closed flat. The next day it fell 15% out of nowhere. The following day it was up something like 8%. And that was before the Nvidia news, which a million stories are covering right now. It’s just one of these crazy markets.

Frank Curzio 02:54

That’s why we said, “Make sure you go to cash and put some money in money market accounts.” We had AI exposure too, and we got hit. Some of these names sold off well more than I thought they would. But you should be sitting in cash earning that 4% plus in money markets. I said this earnings season we could see a lot of names fall 15% or more. We also have other uncertainties. The Fed says its top priority is fighting inflation. Will they raise rates? Very likely, after this week’s inflation number. But the Fed raising short-term rates is going to push long-term rates lower, since higher rates should curb demand. It’s a counterintuitive effect, which is kind of confusing. You’re rewriting the textbooks. Everything is based off the 10-year, and they’re raising rates on the short end, but we’re probably going to see the 10-year come down. It doesn’t seem like it makes sense, and you have to rewrite some of the textbooks, but that’s what’s going to happen.

Frank Curzio 03:43

The 10-year was very high, then it pulled back, and in the last couple of days, with the inflation number, it’s back to 5%. It went down to 4.8, and now it’s 5. Look at that move in Treasuries, from 4.5 to 5. You don’t see that unless something’s broken. And as a country we’re taking on a lot of debt, with AI-related names that’s going to be funded. So looking at what the Fed’s doing is pretty crazy.

Frank Curzio 04:31

Then, Daniel, oil prices. I know you love oil, and I’d like to get your forecast. Where do you think oil’s going to go?

Daniel Creech 05:05

I think oil’s going to stay elevated longer than the market expects, and I hate that. If you just listen to ExxonMobil and the other energy companies that have recently reported earnings, I highlighted this, so I won’t completely repeat it, but Darren Woods from ExxonMobil said, “Hey, you need the Ukraine-Russia war to end. You need the Iran war to end. And then you need the infrastructure that you lost to get rebuilt before capacity and refining capacity get back to pre-war levels.” It’s great to see the price of oil come down. There’s a lot of anticipation, for lack of a better word, that Trump’s going to have to rein in the war with Iran now that he lost the midterms. I honestly don’t know how that all plays out. Unfortunately, if we get a significant drop in oil prices, say if they print in the 70s, I would look at adding exposure to energy, if you want exposure, rather than selling it because you think prices will keep falling.

Frank Curzio 05:59

There’s a lot of good research out there saying that the names with the higher free cash flow yield are the ones you should be buying on the pullback. And oil prices have been so high for so long that 87 looks cheap.

Daniel Creech 54:57

Yeah.

Frank Curzio 06:15

But think about this. A couple of months ago I said it was a dangerous market heading into earnings season, and we were selling a lot of our names months ago because of oil prices. I think we’ve agreed to terms maybe seven times to end this war, and it’s still going on. The pullback in oil is mostly due to a surge in oil production. I don’t know if you saw the statistics, but Saudi Arabia went from 2 million a day in October to over 10 million a day. Qatar gas shipments returned to pre-war levels. The Strait of Hormuz is shipping at about 85% of pre-war levels, so we’re down maybe 10% to 20%.

Frank Curzio 06:15

However, we saw the past couple of days that, with our AI engine helping us find news every second, and not just from major news outlets but from local outlets all over the Middle East, along with pictures and verification, there was a drone attack on one of Russia’s largest Baltic oil facilities yesterday. The Houthis also claimed yesterday that they hit the Saudi East-West pipeline again, as well as Aramco’s biggest oil processing plant. Again, tons of uncertainty, so prices could pop right away. We’ve seen them pop off their lows even today.

Frank Curzio 07:08

It’s rare to pick the right stock in a market like this. Say you decide, “Over the next six months, I think this company’s going to kick ass. They’re going to blow out earnings and sales and come in higher than estimates.” You did your research, and the analysts are below estimates. The stock isn’t up 80% going into the quarter, where it’s the usual “buy the rumor, sell the news” situation. You did your homework. You got these companies raising estimates and then raising guidance, like AMD, Dell, and Supermicro, and you don’t get rewarded. You get punished.

Frank Curzio 07:57

Even look at the NeoCloud group, where a lot is going on in this crazy market. A company like IREN put up a really amazing run. IREN signed a $9 billion deal about a month ago. A couple of days ago, a company signed a 15-year, $28 billion agreement with Anthropic to lease 910 megawatts. [Name unclear in the audio; it sounds like “Ryan.”] I think that’s the one that signed that deal. And then IREN just signed a $9 billion deal with Microsoft. So both had huge deals this week.

Frank Curzio 08:53

And what happens is the news gets used as a liquidity event. These stocks go up temporarily on the news, and the same day they absolutely crash. Even when you’re getting great news, with contracts from the likes of Anthropic and Microsoft, they aren’t bullshit contracts. Nscale is another one, and who knows when they’re going to do the IPO. It’s not even about that. These are good contracts and the stocks still aren’t getting rewarded. Look at this one: down from 70 to 20. I could see a 20% or 25% correction, but when you’re looking at a name down this much, especially over the last three months, holy cow, it’s just a massive selloff.

Frank Curzio 08:53

It’s a crazy market, and we’re going to dig in today. That’s why I say it’s going to be one of the best podcasts. Everyone’s confused. “Holy shit, should I just sell a lot of this stuff? I’m down on it, and I didn’t have stop losses.” Markets like this really suck for anyone who owns AI stocks. But this is also where the biggest opportunities present themselves, and taking advantage of those opportunities is what I’ve done over my career. In 2022, rate hikes led to a huge selloff in growth stocks, AI names in particular, and it turned out to be a great buying event. In August 2023, surging Treasury yields caused a pullback in AI names, and that presented an opportunity. Then in March 2025, Trump went crazy on tariffs, growth stocks and AI names sold off along with the whole market, and it turned out to be a buying opportunity. One month later, in April 2025, DeepSeek was going to change the entire industry. Holy shit. If you go back and look at the headlines that week saying OpenAI and Anthropic were done, even though DeepSeek took their models, a complete copy of them. Now they’re learning how to prevent China from doing this. That’s why you’re not seeing news of cheaper models coming out every time they release their new models. We saw a massive selloff, and again it was another buying opportunity.

Frank Curzio 10:39

For me, Dan, I’ve lived through COVID, the credit crisis, September 11th, the dot-com bubble in 2000, the 1990 recession, and yes, the ’87 market crash. I was only 15, but I was really deep into that one because my dad called the crash in writing one month before it happened. I shared that newsletter on our X account, @FrankCurzio, if you want to look at it. It’s one of the most remarkable newsletters. He said in writing that this crash was going to be worse than the previous three combined, which got him on every single TV channel back then, CNBC and Bloomberg. I got to meet all the anchors and even met Warren Buffett. I felt famous just hanging out with my dad all the time, and I was asking questions about what was going on at such a young age.

Frank Curzio 11:27

But when I look at this market, and people want to compare it to those, it’s different, Daniel. Higher rates make financing costs for billion-dollar projects more expensive. You have some NeoClouds that have taken on a lot more than they can build, at least over the next three years. And by the way, if you don’t know, this was created by the hyperscalers intentionally. I’ve talked to insiders, from data centers to the people at funds that back a lot of these companies, to insiders at NeoCloud companies, using our best resources. I’ve been doing this podcast forever, and this is being done intentionally.

Frank Curzio 12:16

It’s a brilliant strategy by them. They’re buying up all the supply for the next two to three years out. It used to be a couple of weeks out, maybe four, six, eight weeks. Now it’s two to three years out, so the NeoClouds can’t build out their data centers on time. A lot of these deals have clauses that restructure the terms if you don’t build on time, kind of like royalty deals in gold. If you don’t deliver that gold, then it’s going to be a much cheaper price, and the deals change. It’s like those PIPE deals that say, “Hey, we’ll give you money, but if it doesn’t work, we’re going to dilute the stock by 395,000% and get shares at zero.” Then you destroy the company, they make a fortune, and everybody goes belly-up, the retail investors. Kind of like that. It’s a brilliant strategy. It allows Google, Meta, and Microsoft, who have the cash to do this, to restructure some of the deals they’re in with NeoClouds, and even the ones they’re not in, and get much better pricing and much better terms.

Frank Curzio 13:04

Again, I’m hearing from insiders within the industry that this is a smart strategy: “Why are we going to pay up for this?” Inflation is driving costs higher across every single supply chain, but a lot of this is being driven by the hyperscalers saying, “We’re going to be able to restructure these contracts at much better rates,” which is hurting the NeoCloud companies. But notice we’re not seeing a massive selloff in some of the hyperscalers. It’s rare to see a correction of this magnitude in AI when there is absolutely zero evidence of a spending slowdown. The market usually prices things six, 12, or 18 months out, and there are no signs demand is going to slow, not just over that timeframe but over the next two to three years and beyond, with some of these contracts. We’re just not seeing it, right?

Daniel Creech 13:51

No, not at all. We touched on it recently, but ETN is a great thumb on the scale, a pulse of the global AI trade, electrification, all kinds of things. Whether it’s ETN or the hyperscalers or the NeoClouds, which we’ll get to, they all have the same song and dance. Granted, maybe the market’s just getting oblivious to it and ignoring it, and they clearly are. But everybody says demand is outpacing supply significantly, and anybody who gives a forecast a year or two out says the same thing: demand is going to continue outpacing supply. I think you’ve hit the nail on the head. That’s why we’re not in a bubble per se. There can be bubble tendencies and characteristics, and there can be crashes and big swings like we’ve already seen. I’m not ignoring that or putting my head in the sand. I’m simply saying that if we’re talking about a bubble in the sense of the entire market going down 20-some percent, could it happen? Yeah. Anything could happen, but the odds aren’t there, because you have this huge imbalance of demand over supply.

Daniel Creech 14:46

Yes, at some point Nvidia’s going to come out and say, “You know what? Growth is slowing a little bit. We’re not going to grow at XYZ. It’s going to be tapered back. We’re seeing some orders come in smaller.” But, Frank, I don’t have a guarantee, and I don’t think it’s going to be on the 17th when they report. I don’t think it’s going to be in Q1 of next year either. At some point it will happen, but to your point, demand is the common theme. The market’s just taking it. You’ve talked about how sentiment rules, and right now people aren’t impressed with great numbers and positive outlooks. They’re still scared.

Frank Curzio 15:27

Yeah. And notice that the money has to go someplace. We’ve always said that. It’s this rotation, because managers have to put it someplace or they can’t generate fees. So you’re seeing healthcare really kick ass, and biotech is on fire. With the AI trade within that sector, it’s just remarkable what it’s going to do. It’s definitely the biggest sector that’s going to benefit from AI, and even humanity as well. There are so many drugs and systems, and we have access to that through our One membership now, where we’ve signed three different people we get ideas from. One of them is one of the top people with access to the University of California. All the technologies that come out of there, great technologies, mostly in the food space and biometrics, they call this person, and then we’re able to participate in those financings.

Frank Curzio 16:17

We have another person who runs a hedge fund and is part of an incubator system with three of the largest, I think the University of San Francisco, Johns Hopkins, and the University of Toronto. These are the top six or seven names with incubator programs. They get to look at the companies, choose, and say, “Okay, we’re going to fund you. We’re going to take a seat on the board.” We have access to those with the One membership now, which is great for our One members. We also have access to the University of Florida now. They presented at our conference, a great company coming out. I went there and spent some time at UF with the leading doctors, not just leading doctors but leading doctors in the world, who were on stage at our One conference. That combination of what they’re telling me, what we’re able to invest in, and looking at AI investing in that space really is incredible.

Frank Curzio 16:17

And the ideas we’re getting for the One membership, which you have to be an accredited investor for, and then our conference every October where these guys are on stage, are remarkable. We’re not just saying, “Hey, it’s going to benefit.” We’re hearing it from leading doctors. It’s incredible. The number of doctors who listen to this is pretty cool. I was going to say that at my conference, if anybody has a heart attack from getting excited about one of our ideas, that’s the place to do it, because you’ll have 15 doctors on you, ready to go for the next idea. You’ll be fine. So many doctors in the audience, which is awesome.

Frank Curzio 17:05

But getting back to the point about money shifting to other areas, maybe the equal-weight index is doing a little better as AI sells off. Plus you have the hyperscalers holding up rather well. Apple, the biggest company in the world, hasn’t really sold off even though it’s trading at something like 45 times forward earnings, which is insane. Money is going to Walmart at 50 times earnings, 45 times. Money is going to Costco at 45 times forward earnings. These companies usually trade at 25 or 27. So the money has to go someplace, and it’s not about valuation. It’s, “Let’s get the hell out of the AI trade,” with algos that can get out of this shit really quickly, and then get into other places. By the way, feel free to disagree. Send me an email at frank@curzioresearch.com or daniel@curzioresearch.com. If you’re seeing a slowdown in demand, I want to hear it. I’m not seeing it anywhere from any contact.

Frank Curzio 17:56

And here’s some proof from the past 48 hours. CoreWeave reported this morning. Revenue increased 168%. Throw up CoreWeave there, Joe. It’s having a great day. Operating income came in at $379 million, and the Street was expecting $230 million. They raised guidance, saying operating income will grow over 25%. They generated $2 billion in operating cash flow and said they expect $9 billion in payments from customers over the next three months.

Frank Curzio 18:58

This is a company with, what’s the market cap here, Joe? The stock keeps going higher: 13%, 15%, 21%, and we’re doing this at midday. So we’re looking at a $32 billion company, which was about 20% less than today. Say $27 billion or so, and now $32 billion with this 20% move today. They have a backlog, Daniel. You know how big the backlog is?

Daniel Creech 19:24

Mm-hmm.

Frank Curzio 19:24

It’s $132 billion for a $30 billion market cap company. This is money that’s going to come in, and they need it because these guys need power. They’re not like a shitty NeoCloud company. They have more business on the books than all the other NeoClouds combined, with the biggest clients in the world. Management said demand is at 10 times capacity through 2027. Can some of this be funded later? Yes. Could that push things down? Yes. But for CoreWeave to be at 59 right now, when it was at 49 and I thought it was a screaming buy, and I saw upgrades on this at 90 and 85, saying “Okay, it’s done,” to see how much further this sold off is crazy. That’s the market, right? And what does it do? It presents opportunities.

Frank Curzio 19:24

And if that’s not enough, the CEO was on CNBC and said he canceled his 10b5-1 plan to sell shares. That’s the auto-sell plan for insiders, so they don’t get backlash whether the stock goes up or down. They just say, “This is planned and we’re going to sell.” He canceled it. He’s saying, “No, I’m not selling my freaking shares here.” That’s the ultimate endorsement, saying this is getting ridiculous.

Frank Curzio 20:21

Seeing some of these AI names down hurts, but you shouldn’t be down on your entire portfolio if you’re diversified. And you’re seeing an opportunity if you listened to us and put money in that money market account and said, “Just wait until after this earnings season.” We said this earnings season was going to be a disaster. There’s so much risk and uncertainty for CEOs raising the bar and raising guidance, because interest rates have surged over just the past three months and oil prices have surged over the past four or five months. It’s hard to really predict what the consumer’s going to do over the next three months. As a CEO you never want to overpromise and underdeliver, so it opened up a lot of these stocks to pulling back, and they have.

Frank Curzio 21:10

I don’t know if you had any more comments on CoreWeave, but what an unbelievable quarter. It doesn’t get better than that.

Daniel Creech 21:17

This was definitely a quarter the AI bulls needed for momentum. We talked about this with Vertiv, VRT, which had a really solid earnings report a few weeks ago, with margins and supply chain efforts much improved from the previous quarter. That’s what the market needed to hear. We often joke, but we’re not completely joking, that Elon Musk is one of the best conference-call CEOs because he addresses what people want to know and want to hear. The CoreWeave CEO, Michael, did the same thing. Frank, he said their average debt cost is 7.9%, which is actually lower year over year. That’s pretty impressive in an environment where rates are going higher. Seventy-five percent of the committed CapEx is tied to investment-grade companies. You already mentioned the $9 billion in prepayments they’re going to get. And they talked about how they could sell out all the power in 2027 and 2028, but they’re not.

Daniel Creech 22:19

I thought this was genius, because going into this conference call you have to address the midterms, Frank. You have to address debt and what’s going on in the credit markets, and you have to give a little clarity on how you manage your power and your contracts. You have to basically soothe the market over these worries, because there’s fair criticism. If I tell you, “Hey, I’ve got a company doing $30 billion in revenue,” you’re going to say, “That’s awesome.” But if I say, “I’m doing $20 billion a year in revenue, give or take,” and you ask how much I’m spending, and it’s $30 or $40 billion, it’s okay to be a critic. You have to listen to the story, because that doesn’t make sense right off the top. But he talked about the debt average. They think they’re going to raise some more debt through investment-grade, and they’re going to pay between seven and a half and eight at most, seven to seven and a half, up to eight.

Daniel Creech 23:09

I think the market took that in stride, and it was pretty impressive. Frank, they increased prices 25% over the quarter and then another 10% at the end of the quarter. And listen to this. On contracts, short-term contracts bring in $40 million per megawatt annually, and four-to-five-year longer-term contracts bring in $20 to $25 million per megawatt annually. They have 1.7 gigawatts of active power right now, with more in the pipeline. The CEO did a great job of talking about how they match the debt payments to the carrying cost and the contracts. What I think the Street is still missing is that you have to see this to believe it. There’s still execution risk, don’t get me wrong. But once you get two or three years into a contract, and we’re already a year and a half into some of these, when those contracts rebalance or when they sell that capacity out and have paid off all the debt, now you have all this cash coming in.

Daniel Creech 24:06

That’s what they were trying to explain with the leverage. Operating income went higher, and margins are growing faster than debt. You can paint some numbers in different ways, but I really thought he did a great job of hitting the big highlights he needed to. And Frank, listen to this, another great statement, and then I’ll turn it back over: 50% of new customers were outside of the AI industry. So to your point, that’s biotech, schools, training, education, all kinds of different things. Everybody wants to jump to Anthropic and OpenAI, and I can be guilty of this too, because they carry so much weight in the AI stream. When you see these numbers continue to grow, you think, “Oh man, there’s more risk in certain large partners or customers.” Well, they’re diversifying their customer base, because, as you mentioned, AI isn’t just an AI story. AI is going to benefit everything. You just talked about healthcare and biotech.

Daniel Creech 24:59

That was impressive on CoreWeave. I thought the conference call was handled very well. There’s big short interest in the stock, I think around 20% the last time I saw. I’m not trying to rain on the parade. This is great. This is what AI needed, so hats off to them.

Frank Curzio 25:12

It’s not just that. OpenAI came out, and depending on who you listen to, there’s The Wall Street Journal, and I love their headline: “OpenAI continues to suffer heavy losses.” Their quarterly revenue jumped to $10 billion, a 50% increase, not year over year but from three months ago. Management said that at the end of September they had a $50 billion annualized run rate, and that’s the run rate going forward. They’re raising money right now at a $1.2 trillion valuation. So yes, you could say, “Okay, the $10 billion is against $10.5 billion in losses, whatever it is.” But the losses are coming from the spending, and they know their numbers. Look at Amazon back in the day. This is the biggest argument for why nobody bought Amazon 20-plus years ago. They reported all these losses. Why? Because they saw three, four, five different growth markets that they knew they could dominate for the next 20-plus years, and they said, “We’re going to spend everything we can. All the money’s going back in. We’re going to grow, grow, grow.”

Frank Curzio 25:59

That’s what you want when you’re investing in a company. That’s where you get the 1,000% gains, the 10x, 20x, 30x gains. You don’t get them from buying stocks that are growing very, very slowly, that pay a dividend and say, “Hey, I’m going to buy back some stock and all this shit.” Usually those are signs that growth is slowing. This is the only growth trend I’ve ever seen, outside of the internet, where you can’t see the end of it. You don’t know where it’s going to max out. You could say we’re in the second inning, and people say, “Oh, we’re in the fifth inning.” You can’t see it.

Frank Curzio 26:44

The biggest thing in investing in stocks is that you want to look at the total addressable market. Forget about P/E ratios. Forget about [Sharpe ratio? unclear in the audio]. I’ve been studying that stuff for 30 freaking years and getting it wrong. You want to look at the total addressable market. The more of it a company captures, the more revenue growth you can see over a given number of years. I say this all the time, and I’ll say it again with Netflix. I got Netflix wrong when it was trading at 125 times forward earnings. Everyone said, “You’re crazy.” Personally, I was comparing it to other cable companies. I didn’t realize that all those cable companies were competing with Netflix. Netflix owned the total addressable market for streaming, and then everyone tried to be like them. Their total addressable market was really about 10 times the size that people were giving it credit for, which justified that valuation.

Frank Curzio 27:32

When I’m looking at these stocks and where they’re trading, at OpenAI and that AI trend and where these guys are going, take the total addressable market when computers came out. You could say, “How many people live in the U.S.? How many people live in the world? Discount that by 25% for kids and older people, whatever.” That’s the total addressable market, times the average price.

Daniel Creech 27:53

If everybody buys three computers.

Frank Curzio 27:55

Yeah, if everybody buys. I went to the Consumer Electronics Show every frigging year except for lately. I’m probably not going to go anymore, because it’s really not good.

Daniel Creech 28:03

Send me, Frank. I love it out there.

Frank Curzio 28:05

This was, I think, 2012, when John Chambers, the CEO of Cisco, went on and said, “In the next five years, we’re going to see 20 billion devices connected,” I think he said. And I’m like, “This guy’s out of his mind. There are only 7 billion people.” He was talking about people owning three devices each. Now everything’s connected. People have their toothbrush connected. He turned out to be wrong by a lot, because it was something like 50 times whatever the number was. But when I first heard that, I thought, “Holy cow.” He understood how big the total addressable market was going to be.

Frank Curzio 28:05

With a lot of these companies and the amount they’re spending, they know that every dollar they spend now is going to generate over $3. A lot of them have this. I’ve done the research on it: $3.50, $3.75, some of them $4 or $5. And I get it, it’s a lot of spending going forward. But there are ways to fund it, and I’ll talk about that within Bitcoin mining, because there are big trends going on there. Maybe the government can sell debt at a lower interest rate. When you see the runway of this and how much power we need, and how undersupplied we are on power and all supplies, I feel confident that if I were lending money to Google or Microsoft right now, and even to some of these NeoClouds like CoreWeave that have contracts backed by the hyperscalers, the richest companies in the world, I’d be fine. People say, “Yeah, but look at the cash flow.” I’ve been through this a lot. Companies are spending more now to grow, and that’s what you want from OpenAI. If they didn’t spend as much as they’re spending, this valuation would be $200 billion or $300 billion, not $1.2 trillion, because the money they’re putting in is what you’re seeing show up as massive revenue growth.

Frank Curzio 29:49

Who increases revenue 50% quarter over quarter at billions of dollars of revenue? We’re not looking at a company that says, “We did $30 million and we signed a big contract for $100 million.” This is $10 billion, with a $50 billion annualized run rate. These are real numbers. It’s crazy. That’s OpenAI, which just came out. Now let’s turn to Anthropic. Have you seen that news?

Daniel Creech 29:49

You talking about the IPO?

Frank Curzio 30:13

The IPO next week, I believe November 18th. They generated $17 billion last quarter, also around a 50% increase quarter over quarter, and reported a revenue run rate of $81 billion. I’ll do some research for you in a future podcast, but there are only a handful of companies that generate money like this, unless you’re a retail company reselling stuff, which is different. A revenue run rate of $81 billion. I think the revenue was $50 billion, but don’t quote me on that. I don’t know if it was $50 billion, whatever the revenue was. If you read Andy Jassy’s note, his annual report for Amazon, which came out six months ago or so, it was one of the greatest reports I’ve ever seen in my life, covering every single division and everything they’re doing. People aren’t even giving credit for Leo, their low Earth orbit constellation, which is going to be a competitor to Starlink. You saw with Starlink how much money that company is generating for SpaceX. There are only going to be two companies that really do that, Amazon and them, and Amazon is going to be launching that too.

Frank Curzio 31:09

When Jassy talked about his growth and compared it to Anthropic, he said it took Amazon 15 years to get where it got, and it took Anthropic about three years to get where they are. By the way, Amazon owns, I believe, close to a 15% stake in Anthropic. So it’s going to come out at a big valuation, and people think so because of that runway. Anthropic just reported that it’s seeing strong demand for its IPO. This came out a couple of days ago, and they were saying the price would be around 70 to 78. I spoke with someone who actually has access and will have the ability to buy on IPO day, and I asked, “What price are you willing to pay up to?” And he said, “Frank, use your crystal ball. What do you think? 85, 90?” I said, “I kind of see a SpaceX thing, where there’s high demand for it and then you probably see it sell off until Anthropic starts reporting earnings quarter after quarter and people really see how fast it’s growing, just like SpaceX. That puts it in a different ballgame.”

Frank Curzio 32:09

Now they’ve just said it, and within three or four days they came out with that price range and said, “This seems to have strong demand. It’s probably going to come out higher than that price range,” meaning it’s probably going to have a $1.5 trillion-plus valuation. This is built on massive demand and revenue that’s absolutely surging, again about 46% or 47% quarter over quarter, with an $81 billion run rate. Who knows what that’s going to be going forward, because these guys are growing. And we use Anthropic. We use Claude. It’s changed the face of our business and created so many opportunities for it. We’re growing very, very fast now, and it’s just remarkable what we’re able to do with it. I know a lot of companies like that as well.

Frank Curzio 32:09

So what did we cover? In the past 48 hours, we covered OpenAI, CoreWeave, which reported today, and then Anthropic. And then I think this one goes under the radar. If you want to put up TSM, Joe, this is Taiwan Semi. I don’t know, did you see those numbers?

Daniel Creech 33:04

A little bit. I was looking at the other companies. The numbers are amazing.

Frank Curzio 33:10

This company is off maybe 20% from its highs as well. Taiwan Semi is a leading indicator for the AI trend. It’s the company you want to pay attention to all the time. If you see an AI slowdown, it’s going to show up there. Why? Because they manufacture the chips for everyone: Nvidia, Broadcom, AMD, Qualcomm, Apple, Intel, every single one of those guys. Whenever they see demand, they say, “Hey, Taiwan Semi, we need you to do this. Build as many chips as you can for us.” Before those chips get sold to any customer, they go to Taiwan Semi first, so Taiwan Semi knows first. October sales for the month came in at $18 billion. That’s a 60% increase year over year, which is unbelievable. More importantly, it’s a 15% increase from last month. That’s showing zero signs that demand is slowing. Not even slowing. It’s actually accelerating.

Frank Curzio 34:03

This demand is massive right now. They also raised their 2026 capital spending outlook. Why do you think all these companies are raising their CapEx? And believe me, these companies not only have AI, they have AI on top of AI on top of AI, and it’s learning at an unbelievable pace and could probably break into anything in the world and do whatever it wants. It’s so fast and crazy, and people don’t talk about that. It makes forecasting easy. And you’re talking about hyperscalers who’ve been through the dot-com era and through COVID. There’s a reason their balance sheets have always been so strong: a lot of them almost went out of business in the dot-com era and said, “We’re never going to do that again.” Now they’re using AI models to tell them where demand is going, whether something will sell and when, and they can cut back spending immediately if they need to.

Frank Curzio 34:49

You’ll see it from all the companies we just mentioned, especially Taiwan Semi. They’re increasing their CapEx by $8 billion. That might not sound like much when we’re talking about $1.5 trillion valuations these days, but it’s $62 billion up from $54 billion, a 15% increase from last quarter. So again, more evidence. This is money, and you always want to follow the money. You don’t want to follow analysts saying, “Oh, this is…” No. This is real money being spent, and it tells a different story from what you’re hearing out there about data center growth, especially on the political front. If they’re raising their CapEx by that amount, it means they’re seeing massive, massive demand from chip companies.

Frank Curzio 34:49

Joe, I want you to put this up. This filters down to so many companies, the nuts and bolts. That’s what we do. We want to figure out who the biggest beneficiaries are. That’s what we did with Bloom Energy. We kicked ass on that. That’s what we did with Celestica, with massive returns. However, I recommended X-energy in September and got smoked on it. I’m hearing from people who build these data centers that they love the technology, it’s great, and they just signed a big contract, but the stock has gotten wrecked. On the other hand, we had 10x gains, pretty close to that, on BE, and huge gains on Celestica. I think we recommended it at, I don’t know, 40 or something, and it went to something like 300.

Frank Curzio 35:42

This filters down to the nuts and bolts. Now put up Applied Materials, AMAT, with a three-month chart. Now compare it to Lam Research, LRCX. Then compare that to KLA, which is KLAC. How much are those stocks down over the past three months, Joe? On average?

Daniel Creech 36:43

24.

Frank Curzio 36:44

All right. 24% on average. So call it 25% on average that these stocks are down. All of these companies make the process control equipment, the lithography, the components that go into these data centers that are going to get built. All the demand is there. You’re seeing all this demand and all this CapEx spending increasing. They need power. These are the guys that build all this stuff. Process control equipment, all of them getting hammered, and yet all of them reported really great numbers. Now pull up ONTO, Onto Innovation. I told you it was going to be a good podcast. Write a lot of these names down. You’re going to thank me, trust me. This was at 386, and it’s at 217. Pull up the last three months if you can. Holy cow. Then compare that to Camtek, C-A-M-T, which is another one. I’m giving you lots of names.

Frank Curzio 37:40

Jesus, I should be charging for the podcast. I’m just kidding. People are probably like, “F you,” and they’d just turn you off. But seriously, you’re going to get great value out of this podcast. These are advanced packaging names, and they’re down tremendously, companies that reported good earnings and are down tremendously, especially since October. You could look at Entegris, filtration, especially chemicals, and Celestica, and another one. Where’s Celestica these days, Joe? Let me see where the stock is. 244. It was 474. This company is unbelievable. Scroll down. I want to see the valuation, the P/E. It’s a $30 billion company trading at 16 times forward earnings, growing like a weed, and it makes some of the best switches and everything. They’re going to see massive demand.

Frank Curzio 38:35

What about your favorite company? Which favorite company?

Daniel Creech 38:39

In the world? Are you setting me up?

Frank Curzio 38:41

I’m setting you up. Which favorite company that we have in the portfolio? I’ll give you some hints. It’s a Dell computer.

Daniel Creech 38:47

Oh, see, I thought you were giving me a hard time. I was thinking about the bad ones. That’s why I thought you were setting me up.

Frank Curzio 38:51

No, no, no. Dell was almost 600. It’s 375. And put up another one for comparison, Supermicro.

Daniel Creech 39:02

Dell is a bit of an offshoot. They report earnings, and I don’t have the date on top of me, but they’re always late. I believe Dell will report in December.

Frank Curzio 39:11

Put up the last three months. Is that Supermicro you’ve got, SMCI? Okay. So you’re looking at Dell and Supermicro. Let me see here. I want to see this.

Daniel Creech 39:26

Yeah, Dell. And don’t get me wrong, I do love this stock. It’s a great snapshot of sentiment, because Michael Dell, the founder, was on X and posted, “Hey, we’re growing earnings per share at 200% year over year.” That was last quarter. They report a little off schedule from everybody else. And yet the market didn’t care, because look at it pulling back. It absolutely got hammered. We were up over 200% at one time. Now we’re only up 70%.

Frank Curzio 39:51

If you push that.

Daniel Creech 39:51

You want to know how to make a 70% gain feel bad? Watch it go from 200 to 70.

Frank Curzio 39:56

Listen, I have exposure to a lot of cloud names, and I’m doing taxes and seeing it. I’m up a lot for the year, but man.

Daniel Creech 40:03

Oh yeah. Hammered late in the year.

Frank Curzio 40:03

I’m not even close to where my high was two months ago, because I wrote these things up and we got into some of them early. But if you push that chart over to around October 7th, you’re looking at 30% declines in these names. Supermicro reported a blowout number, and then you have Dell as well. Again, companies reporting insane numbers that are down tremendously. And the more these companies report, the more Anthropic might mark the bottom. People say, “Well, it’s going to mark the top.” It might mark the bottom. How can you say it’s going to mark the top when a lot of these companies have already sold off 30% minimum? Dell and Supermicro build the rack servers, the AI infrastructure for AI companies, and their infrastructure is critical for the next generation, agentic and frontier AI. All the companies I just mentioned are down more than 25% on average in the past three months.

Frank Curzio 41:12

These companies are down in the past couple of weeks, yet they reported blockbuster earnings. That’s why we were afraid going in. These companies did offer good guidance and nobody cared. The attitude was, “This is a massive rotation. Let’s get the hell out of everything. You sell the good names with the bad ones.” And the NeoClouds, okay, some of them should be sold off and I get it. But when you’re looking at Dell, it’s like, “Holy shit, these are great, great numbers.” And now we see these trends confirmed by Taiwan Semi, OpenAI, and Anthropic, and the spending that’s going to continue: a trillion dollars in spending in 2027 from the hyperscalers, just the top five. We’re not even talking about all the others. You might throw Oracle in there, and the Alibabas and so many others that are huge in cloud capabilities. This is massive spending going into this.

Frank Curzio 41:57

None of the AI works without what, Joe? We need more power. We haven’t done it in a while.

Daniel Creech 42:05

Hmm.

Frank Curzio 42:06

We need more power. We used to do a segment on that. We didn’t do it in the past couple of months because a lot of these companies got annihilated. It might be better now. Maybe put that on. Let’s forget that one. But think about what we talked about, Eaton. Bring up Eaton really quick. We brought it up earlier, but I want to do another comparison. Guys, pay attention to these names. These are great names that reported great numbers. You almost never see companies report great numbers and issue strong guidance with the underlying trend booming, more being spent than ever before, and that confirmed by so many companies over the next couple of years. You’re not going to see it slow down anytime soon. Throw in Eaton, and throw in a comparison to Schneider Electric, [ticker as transcribed: SNDR].

Frank Curzio 42:51

So if we look at that, and then put up Quanta Services, and you pull up three months, right, Joe? Look at where some of these names are. Same thing, and Eaton as well, ETN. A lot of these companies are down 20% over the past three months. These are huge declines, and they provide the transmission lines, the electricity, a lot of the infrastructure behind these plants that need to get built. They’re maybe down an average of 15% in the past three months or so, but their growth trend is intact. You’re just seeing this massive rotation of money. And where are you going to go? Are you really going to buy Costco and Walmart? I would have said this when they were trading at 40 times freaking earnings: it’s not worth it. Forty-five, 47 times earnings.

Frank Curzio 43:47

Bring up Walmart really quick. Where’s Walmart trading? This stock usually trades at 25 times forward earnings on average. What’s it trading at? 41 times forward earnings. Bring up Apple. Seeing a slowdown, right? Margins are slowing, because memory costs are in every one of their products. You’re seeing iPhone sales slow a little bit. They’re raising prices tremendously at a time when, can people really afford it? Do you really need an iPhone every single year? Absolutely not. I was in this business. You can upgrade every three years. There’s nothing really new. They’re going to say “Apple Intelligence” again, and probably not have it, like last year. What’s Apple trading at? 40 times forward earnings. And then throw up Costco. Are these the names you really want to buy here?

Frank Curzio 44:40

Look at Costco and where it’s trading, and you know what this company had the balls to announce? A $4 billion repurchase. They’re going to buy stock at this level? This is where you want to buy stock? You can’t find a better use of your $4 billion in capital? Why don’t you steal every executive from freaking Walmart and poach them? That’s a better use of your capital than buying your stock back at this valuation. Holy cow. This is where the money flowed, because it has to flow someplace. Look at these names, look at those charts. It’s the total opposite of AI. But do you want to buy those up here? I wouldn’t say short them or sell your whole holding if you own them long term, but probably take profits, because otherwise you’re going to kick yourself. These companies could fall 25% and still be trading at significant premiums in a market that’s trading at 18 times forward earnings.

Frank Curzio 44:40

When you look at AI, the sector is so under-owned right now that it’s difficult to see some of these names going much lower from here, especially the hyperscalers and the memory names. We throw this up all the time. Throw up Micron. Look how much Micron has come down. MU. The high was 1,255, and it’s 814. Holy cow. And look at what Micron is trading at. By the way, they have demand for the next three years easily, probably the next five, they say. This company is trading at four or five times forward earnings.

Daniel Creech 46:07

That’s like a misprint.

Frank Curzio 46:08

It’s insane. And people say, “Oh, well, most of it’s priced in.” This company is going to generate so much freaking cash and has so much pricing power, because the whole world needs memory. It’s a company where it makes sense to ask what its market cap is. It’s a trillion dollars. They should announce at least a $100 billion buyback right here and now and send the stock up 15%. This is when you want to buy back your stock, when you’re generating this much free cash flow. Again, they’re building out more facilities and probably have high CapEx, though not as much as building out data centers. But this is a company that should announce a $100 billion buyback right here, because it’s a joke where it’s trading right now. It’s really insane.

Frank Curzio 46:08

Then you’ve got Nvidia. Yes, we all know the CEO news. [A garbled aside about Nvidia’s CEO and a joke about Adam and Eve and an apple is unintelligible in the audio and has been removed.] Anyway, Nvidia: a lot of problems. What’s the stock trading at? They’re growing earnings and sales at 60% or 70%-plus, and it’s trading under 15 times earnings. I think I heard today that it’s at its lowest valuation in nine or ten years. With the uncertainty, they still have the technology. Everything’s going to be good. Yes, there’s risk of more stuff coming out, and we’re reading a lot more about how things are connected to [MindSpeed? unclear in the audio]. Let’s see what happens. To me, this news story will go away. I think he’s the greatest CEO, but even so, they have great industry leaders and great innovation. It’s not him building the chips.

Frank Curzio 47:47

They know the partnerships they have, their long-term partnerships. This is a company invested in every single company along this huge AI chain. I believe this news is probably going to go away three months from now. And when it does, even in a worst-case scenario where he’s forced to step off, I still think this company’s going to be okay, and it’s priced in that he’s going to step down. So if he doesn’t, this thing’s going to be re-rated to 220. You don’t get opportunities like this. I can’t remember seeing a bigger discount between stocks and prices since the bottom of the credit crisis in 2009, when 18% of the S&P 500 names traded below $10 a share. Even back then, you could say they traded above $12 or $15 a share, but they kept coming down and down. A lot of people probably don’t remember this, but in 2008 everybody thought 2009 was going to be great because the market started going back up in the last couple of months of 2008. Then it fell 33% in the first three months. Kind of like this: “Holy shit, what the hell happened?” That was the ultimate bottom. After that you could have bought any stock and been up 10x in the next three or four years.

Frank Curzio 48:42

So when you’re seeing a disconnect like this, where the S&P 500 average forward P/E is 18, Micron is trading at five times, and a lot of these hyperscalers are trading below that market multiple and growing two to six times faster than the S&P 500, you don’t see disconnects like this often. Could it get a little rough over the next month or two, maybe the next three months? Yes. But if you place 25% stop losses on these right now, a lot of them are going to give you 50%, 75%, 100% gains going into the future. Maybe not 100% in some of these large caps. I think Amazon could double from here. Nvidia could probably go up 30% or 40% from here. The risk-reward on owning some of these stocks right now is something you don’t see often, and that’s what we’re paying for. So for me, I’m going all in. I’m pushing my chips in and aggressively buying stocks here, especially within AI.

Daniel Creech 49:44

Ooh, I like that. Look at the poker reference. Going all in, pushing my chips in.

Frank Curzio 49:47

Yeah. Hey, look, this is what we’re waiting for. They don’t happen often like this. And you’re looking at the risks. When I said it was a dangerous market, with oil prices and the Fed, I think oil prices are going to continue to push lower overall. The political risk is behind us. Democrats won, but those states aren’t going to curb AI buildouts, and if they do, you’ll see other states say, “We’ll take the business,” or other countries say, “I’ll take your billions in business and all these jobs.” Think about the message they’re preaching: affordability. California and New York are saying, “Elect us because we’re about affordability,” which are the two highest-tax, most unaffordable states, all under Democratic control. Whatever, I’m not picking on anyone. That’s very smart. You say what you have to say to get elected, just like the Republicans did, saying we’re going to release the Epstein files and all this. You say what everybody wants, and then you get elected and it doesn’t matter, because you’ve got a few more years to do whatever.

Frank Curzio 50:21

But they’re not going to curb AI buildout. You’re seeing governors, even the governor in Texas, say, “No, we’re going to look at this,” because they’ll look at environmental concerns and realize that golf courses use more water than data centers. They’ll look at electricity costs and say, “It’s kind of weird that the states outside of the ones with data centers have electricity costs rising faster than the ones with data centers.” And even if they believe data center costs are going higher, they go to the hyperscalers and say, “You guys take care of it,” which eliminates that risk. So what is the risk here? The risk is losing millions of jobs if you mess around with these AI companies, which have no problem saying, “Okay, we were going to build that here three years ago. We’re going to go to North Dakota and build 40 of these, and we can probably save a ton on cooling costs.” It’s minus 40 there in winter, which makes sense. I think North Dakota is the only state that didn’t announce anything about data centers or say no. They actually approved it: “If you want to come here, come here.” Alabama was another one that was positive. But even with the negative ones, that’s behind you as well.

Frank Curzio 51:13

I think we’re going to start seeing rates move lower. Yes, we’re going to see a couple of rate hikes, but look at the 10-year. And housing is a completely dead market. Rates just moved up again after moving down, and mortgage rates have gone up four straight weeks on this inflation report. But I think you’re going to see the 10-year push below 5%, which it already did. We got a bad inflation number that’s going to push it up, but more likely we’ll see it move lower. And we’re already seeing inflation subside in gasoline prices. Have you seen them? We’re getting $3.50 prints in Florida. They were $4.25 a couple of weeks ago, over four dollars a week ago. A lot of the risks from three to six months ago are set to reverse over the next six to 12 months, I believe. And then you have this trend that’s not slowing down anytime soon, and it’s offering a chance to buy a lot of these names at a steep discount.

Frank Curzio 51:58

You should be prepared. You should have cash on the sideline, so hopefully you do. I’m not saying this as someone who didn’t lose money on AI stocks. Some in our portfolio got nailed, but I do have a lot of cash on the sidelines, like we said. I practice what I preach. I invest in the names I’m invested in, in my portfolio, in the Alpha portfolio. I’m comfortable losing a little money. I’m still up on the year because we got into a lot of these names early, so I’m comfortable with that, because I have a lot of cash on the sidelines that I’m pushing into a lot of these names now, which I really like.

Daniel Creech 53:05

Yeah. My big concern is just to see what the Fed and Treasury do. And I’ll get a little crazy here, Frank, but if you go back to basically the Great Financial Crisis, any pullback has been very shallow and short, kind of V-shaped, violent on the way down and violent on the way up. It’s not directly tied, but when I look at this, it’s because either the Fed or the Treasury comes in and does something. They announce something, they intervene somehow. The frustrating thing from my perspective is that we know another one of those is coming. The Fed or the Treasury is going to do something that helps markets, helps liquidity, because it has to. We’ve talked about our debt and deficits and all that. It’s probably not going to happen at the end of this year, but I’m with Frank. Some of these names are down so badly that I think it’s fine to start buying them.

Daniel Creech 53:58

I’m just trying to think through what the Fed or Treasury announces and when. I don’t think it’s the end of this year. I think it’s sometime in Q1. That doesn’t mean they have to do it before the market rallies. That’s not what I’m saying. I simply want to point out that if the market doesn’t believe the incredible numbers a lot of companies are putting up, then I don’t know what the ultimate catalyst is from a market perspective. I think Frank is dead on about selective names, and that’s okay. This is a stock picker’s market, and that’s what we thrive on. Just pay attention to the Fed and the Treasury and their announcements. The task force is going to report to Fed Chair Warsh soon. The date is escaping me right now, but I believe he gets a report from the balance sheet task force next week.

Frank Curzio 54:46

Mm-hmm.

Daniel Creech 54:46

Those are going to be making headlines, and that’s all going to be good.

Frank Curzio 54:49

And December’s rate hike, which is coming, I think.

Daniel Creech 54:50

Yeah. The rate hike is already priced in, and now you’re talking about 50 basis points.

Frank Curzio 54:54

I would say that.

Daniel Creech 54:54

They might tune in to you.

Frank Curzio 54:56

Yeah, I said that a couple of months ago.

Daniel Creech 54:57

Yeah.

Frank Curzio 54:57

If you’ve got to do it, do it. A quarter point is nothing. Do 50, and do 50. Now you can look back, because now it really says, “Okay, I know what the Fed’s going to do. They’re really focused on inflation here.” I think that’s going to be a positive for markets if they do that, even though people might say, “All right, they’re raising short-term rates.” I get it. Again, we want to look at the 10-year, which drives mortgage rates, which drives debt and everything.

Frank Curzio 54:57

I’ll finish up here, because I was going to get into Bitcoin. Listen to tomorrow’s podcast. I have a big segment on Bitcoin that I want to go over with you, because I think Bitcoin is going to come down a lot more from here, and I have a lot of data to support that. We just didn’t get a chance to go into it, so definitely listen to tomorrow’s podcast, because I’m going to break that down. It’s going to be a very, very good segment, breaking down a lot of names. So just be careful. We lowered our exposure to Bitcoin pretty much entirely. We used to have a newsletter for crypto that we stopped publishing, and we got some shit from people. We took care of them, put them in the right newsletters, and gave them subscriptions to our Alpha newsletter, which combines all the newsletters. People get pissed: “Oh, I subscribed to that.” My job, credibility-wise, and I’ve been doing this for 30 years, is that if I see something that’s not going to work, I’m not going to keep it going. I could have kept the revenue going for that, and you could have gotten destroyed no matter what I recommended. I’m not going to do that to you. For me, it’s always about doing the right thing by the customer. Yes, it pissed off a couple of people, but since then we’ve seen a lot of this industry get annihilated even further. I think Bitcoin’s going to come down a lot more, and I’m going to tell you why tomorrow, so definitely listen to that segment.

Frank Curzio 55:44

But I’ll tell you this, and I’ll finish with it. I just think there’s a tremendous opportunity here. We have Trump, and we have the Democrats in the House and the Senate. I get it, but it makes sense for this to be a bipartisan thing. We’re talking about the government and funding, and you could say, “Well, this is nationalization, this is socialism or whatever,” which is going on in a lot of cities now with their mayors. But regardless, it’s a great opportunity for the government to fund the AI buildout. It’s a massive opportunity to spend $200 billion or $300 billion on these companies, where you’re going to get amazing rates and amazing returns. It’s a layup. Instead, what do we do? We fund Social Security and healthcare, which are massive losers for the taxpayer. This would generate a shitload for the taxpayers, because we know this money’s going to come in. We know this data center buildout has to happen. It allows us to move even faster from a national security standpoint against China, so it checks off that box.

Frank Curzio 56:32

If an announcement like that came out, and I wouldn’t put it past them, it would change the landscape of the industry. It would put a floor underneath this thing, and you’d see these stocks absolutely skyrocket back to all-time highs. That’s the one thing. So many of these projects, a lot of the NeoClouds took on so many big projects, and now they don’t have the supplies to get them done on time. So how do you get the funding? You’re seeing interest rates go up on the funding, and the financing is getting much more expensive. I understand that. And that’s what we’re going to talk about tomorrow with Bitcoin, and a lot of that with the Bitcoin miners who went from tier one to tier three, and why I think it’s going to impact Bitcoin in a negative way.

Frank Curzio 57:24

But that’s an opportunity. Look at all the shit we spend on the post office, losing $5 billion, $6 billion, $7 billion, when UPS and FedEx know how to do it. They don’t care about it. This is something they can make an absolute fortune on, and a lot of people can make an absolute fortune on this. This could be the rebirth of private equity if they can get some dry powder. They’d eliminate all those 22,000 or 30,000 companies sitting on balance sheets, which they’re probably going to tokenize and sell, the dog shit, to retail investors. But once they get that dry powder, you’re going to see a lot of these private equity funds say, “We’re going to be funding this stuff, because we see those cash flows coming in two or three years out. It’s going to be massive.” And it’s a layup in terms of returns, especially when they’re backed by hyperscalers, trillion-dollar companies. Which is exciting.

Frank Curzio 58:18

So I do think we’re kind of bottoming here. I’m very excited. We could see a little more risk, but just to let you know, I’m in the same boat as you guys, and I’m pushing in here. I like a lot of these AI names. I recommended two in our newsletter recently, last week, and I’m going to continue to do so. You can expect a lot of new names making their way into the portfolio, because we have a lot of room, since we sold out of a lot of names in the past couple of months for this moment. You’ll see that in the Alpha newsletter if you’re a subscriber. Questions and comments, feel free to email me at frank@curzioresearch.com. Daniel?

Daniel Creech 59:02

Daniel@curzioresearch.com.

Frank Curzio 59:04

All right, guys. Happy Veterans Day, and see you tomorrow. Again, be sure to tune in. That Bitcoin segment’s going to be great. We’ll see you then.

Daniel Creech 59:11

Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money and your responsibility.