Wall Street Unplugged
Episode: 1100December 20, 2023

How crypto changed my life

Thank you to everyone who attended last night’s special live event: Crypto 2024.

For anyone who missed it, I start today’s show with a recap of the biggest highlights, including: the paradigm shift taking place across the crypto space right now… the major catalysts that will send Bitcoin shooting higher… the REAL reason politicians want to ban digital assets (spoiler: it’s all about control)… and why crypto offers investors an opportunity unlike anything I’ve seen in my 30-year career. I also explain how my crypto gains have changed my life.

If you missed the event, don’t worry… You can watch the replay here.

FedEx (FDX) plunged more than 10% today following an ugly earnings report. I highlight the company’s biggest failure… whether I would buy FDX on this pullback… and one stock that will benefit from FedEx’s struggles.

Inside this episode:
  • Highlights from Crypto 2024 [0:30]
  • Huge upcoming catalysts for Bitcoin [5:30]
  • Why stocks can’t compete with the opportunity in digital assets [26:30]
  • The REAL reason politicians hate crypto [39:39]
  • My house was built with crypto gains [44:35]
  • What’s behind FedEx’s ugly earnings [47:50]
  • This stock will benefit from FedEx’s failure [53:42]
Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.
Transcript

Wall Street Unplugged | 1100

How crypto changed my life

This transcript was automatically generated.

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on Main Street.

Frank Curzio: How’s it going out there? It’s December 20th. I’m Frank Curzio. This is the Wall Street Unplugged podcast where I break down the headlines and tell you what’s really moving these markets.

So yesterday was awesome.

I’m pretty tired.

I’m actually gonna take a sip of water already because I’m losing my voice from last night’s crypto It was 100% live all unscripted.

Had Daniel help me out.

It was really, really cool.

Talked gave the case of why everyone needs to own crypto and not just Bitcoin, Ethereum, which you’re gonna soar over the next 1224 months.

Uh, and likely even longer.

But also shared several ideas I like in this space.

And if you’re a Crypto Intelligence subscriber, I didn’t give away any of those picks in the newsletter, actually.

One, which is up over a hundred percent, that I mentioned.

But we have three to last four picks are up over a hundred percent.

And this is over the past three months.

One of ’em is up, well over a hundred percent in 40 days.

So the average position in the newsletter is up.

It’s probably more today ’cause crypto’s up and that’s based on 16 positions.

And it should come as no surprise that a lot of these names are starting to really surge because if you look over the last five months and why I’ve been pushing this so much and, and you’re not gonna hear me push things.

And in terms of, you know, areas you have to invest in, unless you know, I really believe there’s an opportunity for you to make a lot of money, okay? Sometimes people do it the opposite.

Something’s really, really exciting and they’re gonna get you in at the most exciting period where it’s almost almost gonna come down tremendously and you’re gonna lose money.

Kind of like when almost every ETF is launched on a certain sector.

If you look at ETF of where it’s launched, it’s almost always launched at the top of the market.

’cause that’s when you market the best and you get the most money in it.

So I’m not saying that’s gonna happen to Bitcoin because there’s a lot of figures and numbers I think people don’t understand.

And when I looked at these cryptos, the best of breed, not the s**t.

We saw this s**t, a lot of this got wiped out in the industry for the last couple of years, but the best names in the industry you could buy at a 50, And they went on sale because of a lot of liquidity coming outta the market with FTX, right? The, these, you know, events where, you know, the FTX and Binance were two to large in the industry, had Celsius, who was large, had block fi, you know, the two crypto banks were forced.

The SEC illegally forced those banks to close with no fraud or anything.

That’s a signature silver gate.

So you don’t see disconnects in an entire market with the best names in a particular industry.

All of them go down this amount at the same time.

Usually there’s a difference in them.

And when you see a sector or something like that go all, they all go down at the same time.

It just, it’s usually liquidity event people are coming out of it, you know, it’s not based on the individual name or what they’re doing, it’s just based on the entire industry.

What you see with uranium, right before it ran up to $80, a pound, right? Which is, which is on fire right now, but for a 10 year period it wasn’t, didn’t matter what stock you bought, the whole industry was just outta favor.

Now we’re talking about the best of breed names.

You don’t see that.

We saw it after the dot-com bubble burst.

And that was, you know, in the early two thousands.

We saw it during the credit crisis 2008, I think, when I was covering stocks under 10 for Cramer at the time it was, I wanna say nearly 20% of the S&P 500 stocks were trading below $10 a share.

That’s insane.

I mean, I don’t think there’s any trading below that.

Maybe, maybe a couple, maybe on one hand you could, most of ’em are trading a a lot higher than that.

You also had COVID 40 day period in early 2020, only 40 days really when the market crashed over 30% where they locked down everything, right? Once a lifetime event.

Uh, you saw tech names get crushed and you know, tech names got crushed in 2022.

I mean, I think it was, you know, Microsoft, I think Microsoft, a lot of the big names Nvidia fell really, really hard to under a hundred dollars a shares.

Uh, you look at at Meta also got annihilated.

I mean, you don’t have these disconnects offer when you could run in there and buy some of these things unless something big happens.

And that’s what happened.

And in crypto, I think a lot of people are familiar with these boom and bust markets.

Oh, it’s hot and then it’s not hot.

And yeah, you’d be right in saying that.

And if you look at charts and figures and you really look at Bitcoin over its history, you could see there’s a pattern that develops.

People love patterns.

This happens all the time.

We have a seasonal pattern in in stocks and I gotta go up all the time.

You know, sometimes you have to take a step back and see if there’s things different because when you look at Bitcoin and the booms and busts, the booms take place, place around the Bitcoin hings, which are every four years, and that’s where they cut the supply growth to to, to, you know, it makes it much more difficult where it reduces, um, the supply growth by 50% every four years.

So you have the, the fixed rate of 21 million coins, but the rest of them, which is a little over like, probably like a million and a half, that haven’t been produced yet, are produced.

And you have these powerful computers and it makes it harder to, to reward those people when they figure out the block, and get reward.

And that it makes it much, much harder where it reduces the supply growth by 50%.

And there’s no coincidence here.

And I have a chart up if you guys are watching this, on YouTube, if not, I’ll go over but the Bitcoin ing timeline, and you go all the way back 2010, the first one happened in, you know, what was it? We had 2008 when it, when, you know, again, this was created.

You have, you know, 2012 was the first halfing and you notice like 385% gains.

And then you have, this is 12 months leading up to it and 12 months after 8000% gains in 2016 17, that’s 2016 is when it happened.

after, you had the next Bitcoin half in 2020, only 17% gains.

But you gotta give it to them.

That’s not a problem.

’cause that’s May, 2020 was the last halfing, and that was right in the middle of COVID.

It was right in the market, started coming back, but after that 559% gains.

So, you know, that’s enough with reducing supply growth.

I mean that’s a, a big catalyst by itself.

But then what you see, what no one really explains in these charts is watch what happens after that year.

We’re in a peaks, you know, we see this peak in, in 2013 after the 2012 period, haling.

And we went from a thousand Bitcoin to 2 69 and we saw a massive decline, in Bitcoin.

And this is 2017, as well, you know, just a, an absolute crash.

Uh, we saw, you know, again after these hings in 2021, a year after, right now, this is the boom and bus market, okay? If you can’t see, isn’t trying to explain it to you.

But you know, you saw in 2021 where we went from 60,000 to basically 15,000, right? So it’s this boom market around this major event happens every four years, which is the Bitcoin halfing.

And it’s 12 months before, 12 months after to buy Bitcoin.

And after that 12 month period, you better sell, should get out, run to the exits, right? That’s the pattern.

And it’s no coincidence as following that pattern today because Bitcoin is up It makes sense.

It’s following the pattern because April is going to be the next Bitcoin haling.

Now that pattern people follow all the time.

And you know, based on that pattern, you would say, okay, the half thing is in April.

So maybe 12 months after we’re gonna have, you know, a nice year for Bitcoin and then 2025 probably by mid 20, 25, maybe early 20, 25, get the hell out, sell the s**t, I’m gone.

You’d be really, really wrong thinking that.

And here’s why, because things change.

And that pattern is gonna change dramatically because we’re seeing a fundamental shift.

And this is what I’ve been talking about within crypto.

This has me excited because the reason we’ve seen Bitcoin fall after 12 months after the halfing is you see demand come down, okay? There’s not much excitement and you seen demand come down, but now what’s gonna happen? We’re going to see an absolute explosion in demand.

And it’s not gonna just be for 12 months.

It’s not gonna be 24 months.

It’s going to be going forward for a very long time.

I’m not sure I can compare this to anything.

That’s how big it’s gonna be.

It’s like the explosion.

We saw PC sales in the nineties and smartphones in two thousands, streaming and social media users over the past 10 years.

And, and if you look at the companies within those trends over the past, you know, 10 years or within this, so look at Microsoft, look at Apple, look Nvidia N look at Netflix.

I mean, you could say 10 x 50 x thousand x plus gains, if you’re looking at Nvidia, I mean life changing returns when you see this type of growth.

And where’s the growth gonna come from? Well, we have seven Bitcoin ETFs that are gonna be launched over the next three months.

I think there’s 13 in total, but seven are coming out.

The first one’s gonna be arc that’s gonna be approved in January.

When you go over the assets from these companies, we’re looking at 25 trillion in assets in the management for the companies that are launching these things, okay? From likes of BlackRock.

Look at Fidelity, look at VanEck, WisdomTree, Franklin, Templeton, just to name a few, right? That are going to have access.

They’re going to give their clients access to Bitcoin.

Okay? So you throw in another two and a half trillion dollars in money market funds and then, and not money market funds.

This is two and a half trillion in money that’s on the cash balances of ba of corporate banks and SP 502 and a half trillion, and then 6 trillion in cash from money market accounts.

Why I’m throwing those two in to add to that 25 trillion is because of 6 trillion in cash.

When you look at money market accounts, again, that money, there’s a lot of people that want that to go to crypto that want crypto from that.

Now they’re gonna have an easy option.

The two and a half trillion, there was not a lot of money that was dedicated, that going to Bitcoin, that cash it would go to different things.

It would go to treasuries, you know, whatever.

Now there’s a very good shot.

You’re gonna see some of this money come into Bitcoin because there’s a big change, a new accounting change.

It’s FASB accounting, it’s gonna take place next year.

And it’s a pretty big deal.

And if you look at Michael Sailor, who’s one of the o the few people 2020 started buying Bitcoin.

He got into Bitcoin and, and using his balance sheet.

And you know, again, I even thought it was a little crazy back then, but he’s the owner of the, of the company.

He controls the voting rights and that’s fine.

And he proved me wrong and a lot of other people wrong.

But it’s one thing to use your cash.

Uh, and, and by Bitcoin, it’s another thing a lot of companies are stopping for doing this is because of the way it’s accounted for.

And with the FSB rules, I don’t wanna bo you to death here, but just know it, it it was seen as an intangible asset and it forced Michael Sailor to write down more than 50% of the value of his Bitcoin holdings, which results in MicroStrategy reporting quarterly losses almost every single quarter to the point where Bloomberg comes out and says, you know, this is their last quarter, November, 2023, when they report a loss, Bloomberg comes out with a headline saying, MicroStrategy reports another loss in quarter.

And, and writing down assets, they’re forced to write it down.

So if Bitcoin, if you buy Bitcoin for a million dollars and it goes to, you keep it on your balance sheet and it goes to $20 million, you have to recognize it at a million dollars.

That’s unlike other assets.

However, if Bitcoin goes from a million to 300,000, you have to recognize it at 300,000 forever.

Meaning if it goes up even to a million, even at 20 million to a billion, you have to, it, it’s, it’s accounted for just $300,000 on your balance sheet, which is insane.

So it forces you to report massive losses.

’cause we all know if you look at MicroStrategy and how much Bitcoin they have in the balance sheet’s, close to $7 billion, they have two and a half billion dollars in unrealized gains.

Those are not unrealized gains.

So what you have to do is they have to actually take the two and a half billion and they’re writing it off and it’s going to show a loss and it’s a pain in the ass.

Like you go look and say, okay, and Daniel and I covered this, it’s a very big deal because you have to follow every single movement in, in, in every crypto you’re gonna have in the balance sheet.

If it’s not just Bitcoin and others, it’s real pain in the ass.

You know, just the write downs, more expenses in terms of, of more people who account for this and accounting and stuff like that.

And just the perception’s bad.

Now it makes it a lot easier.

A lot easier.

And people want it.

And it makes sense because you look what the government is doing to the purchasing power of the dollar.

I mean, unlimited spend, is there a difference between 34 trillion and 40 trillion? No.

Well, how about 34,000,000,000,030 7 trillion? I mean, they could spend $3 trillion in a blink of an eye.

No one’s even gonna really know or care.

That’s the levels that we’re at right now.

And it’s not stopping.

I mean, 1 trillion in, in interest expenses right now is insane.

But getting back to Bitcoin, we’re talking about 32 trillion in capital or Bitcoin’s new total addressable market.

That’s TAM, that will now have an easy way to buy Bitcoin.

Now people are gonna say, well, Frank, all right, it’s not gonna be 32 trillion.

Some people are regret, they’ll say, okay, what happens if 10% comes in? What happens if 5% comes in? You know, let’s say 2% comes in just 2%.

And I think that’s a super conservative estimate at 2%.

That’s $700 billion plus in new capital flowing into an asset that has a market cap of 850 billion.

Okay? So it’s 80% of that brand new capital of its market cap.

What do you think would happen to Microsoft, which has a $2.8 trillion market cap? If I told you 2.3 trillion in new capital is about to flow directly into the company and don’t say it’s gonna double because it’s not gonna double.

Microsoft created a $2.8 trillion company having less than $200 billion in capital on its balance sheet.

Imagine if it had 2.3 trillion, not that it’s gonna go to the balance sheet of Bitcoin, but you could see where this is going.

This is massive.

Not to mention if you’re looking at Bitcoin, 75% of holders on new record hold Bitcoin and they’re long-term holders.

Michael sale’s not selling it.

If you talk to people with Bitcoin, they’re not selling it.

I talk to so many people who are die hards, they’re not selling it.

I disagree, I said on the call, and on an event that you know, you should have an exit strategy, you should be able to sell half.

Uh, you know, if you’re buying something based on a thesis, and I think it’s going a hundred thousand Bitcoin, if it goes a hundred thousand, sell some of it, right? But some people are just diehards now with 75% of the people holding Bitcoin, think about this for a minute.

Again, I’m providing you facts and, and, and numbers and people could say it’s going to a hundred thousand or whatever.

I I just want to show you the numbers ’cause I’m a numbers guy without boring you.

If 75% of Bitcoin investors are holding it right now and there’s whatever, 19 point whatever, it, it leaves less than 5 million Bitcoins that are, are actually in circulation to purchase.

So if you take the 5 million in Bitcoins that are out there and say it times it by today’s price of, of wherever it’s 42,000, you’re talking about $200 million worth of Bitcoin at current prices that’s available with 700 million of potential new capital coming into the asset that’s gonna wanna buy this.

That’s the fundamental difference this time around, you’re gonna see this huge, massive flow of demand that you never had in between the periods of the Bitcoin haling.

And again, when you look at Bitcoin haling, that’s enough to drive the stock any stock up tremendously.

But now when you’re looking at the demand side, it’s important to see this for what it is because a lot of people say, well, it’s cyclical, it’s a cyclical asset.

It’s not cyclical, it’s now a secular asset.

So every commodity goes through these cyclical changes, which means cycle, right? It’s up and down, up and down.

Look at uranium, okay? You had Fukushima prices over a hundred, demand was strong.

Then all of a sudden, France, Japan, everyone was like, we gotta get alpha nuclear.

And that happened for 10 years.

So now you have this massive supply and then no demand.

What happens? Prices get crushed.

Now, fast forward to, you know, the last 12 months and people are realizing like, holy s**t, with all the electricity demand coming from EVs, you know, we realized that, you know, the sun needs to be out for solar work.

The wind needs to blow for, for, for, you know, wind and for wind energy.

So, you know, we need something, we need something.

And, and it makes sense now.

So now all these companies within the Iranian space, they, there was no supply in the market because the price was so low, right? This is a disconnect, right? Where you see supply and demand imbalances, which creates a cyclical market, they always kind of overshoot to each side.

So now they’re ramping up.

’cause now prices surge from $25 to $8 a pound, they could produce at 50, $60 a pound.

Now they’re starting to, they see this massive demand, the price is going higher and maybe in two to three years from now, it’ll adjust.

And then you find that medium and it comes down.

Copper right now is at a supply demand balance.

Uh, I, I love copper right now in terms of prices.

And look at oil.

18 months ago, what happened? We hit $90 a barrel at $90 a barrel.

Oil companies are like, all right, let’s start producing more of what we own, from the assets we currently own.

And now 18 months later, what happens? We’re producing more oil than we’ve ever produced in the history of America.

And where do you think prices are gonna go down? $70 important for you to understand that Bitcoin is known as something that’s in elastic.

So as the band rises, what happens If you have a product, any product, any of you own your own business, right? You have a product in demand surge, what do you do? You’re gonna produce a lot more of that product.

Well, you can’t do that with Bitcoin.

That’s why it’s in elastic Supply remains constant.

You’re not gonna see more production.

It’s limited to 21 million coins of be produced.

Now if you see the Bitcoin halfing, right? Cutting your supply growth in half because supply remains fixed, right? So you have this fixed supply of 21 million, but the supply growth that’s gonna get us from 19 and a half to 21 million is limited, gets cut in air from, from the Bitcoin haling.

Again, that’s enough to be a massive catalyst to push Bitcoin higher.

Which it, it’s doing, it’s doing exactly what its pattern does, right? A year before Bitcoin, everything’s coming, okay? It’s going ups up 160%, it’s probably gonna go up even further.

Now you throw in demand, which is going to absolutely skyrocket.

And that’s a conservative estimate of 2% of this capital flows into Bitcoin.

I think that’s super conservative.

There’s a reason all these companies are launching ETFs.

The people want, the people want this asset, they want it, they wanna on the balance sheet, okay? They want to own it forever.

Especially when you’re looking at, at the crowd that’s 45 years and, and under and they wanna own it forever.

And you could say it’s a cult or it’s a religion.

But this is their way of saying fu to the system.

This is a way of saying fu to Wall Street since crypto’s about to disrupt the financial industry, trillions, trillions of dollars in assets while central governments do what, right? They, they limit competition in the banking space and they don’t punish these guys for any wrongdoing, right? So it’s an f you to Wall Street and saying, wow, we need the disruption.

All these guys are middlemen.

You have this freaking, all these new technologies are coming out that’s gonna make crypto safer and more secure, faster again, cheaper.

And you don’t have to pay middlemen a ton of money.

You talk about hundreds of trillions of assets into bank controls.

So it’s an fu to them, it’s an fu to politicians who are running up our debt tremendously, 34 trillion.

And now we see things on TV funding, schools like Harvard and MIT with our tax dollars while they brainwashed our kids into hating our freaking country.

We’re paying for that.

Really? My tax dollars are going to that.

They hate white people.

They’re going to that.

Are you kidding me? My daughters can, would never be able to get into those colleges.

Not no matter how smart they are, they won’t be able to.

It’s true.

I mean, it’s crazy.

Well, how about spending on tax dollars, tens of billions on, on a war in Ukraine, right? You want to help you Ukraine, you get it.

But now it’s unlimited.

You have a guy out there that’s just crazy, that wants a world war begging for more money, telling us to stop spending money on infrastructure and fund our war, stop building roads.

And British, he actually said that.

He said that that’s your pitch to America to help you.

So when you look at taxpayer dollars, you’re like, okay, and then you see the funding going to Ukraine if tens of billions of dollars and his accounting irregularities where you’re seeing, oh, we, we you, we, there’s $2 trillion that, that are not accounted.

$2 billion not accounted for.

Billions, billions of dollars on like, this is our taxpayers money.

This is our money that you take out of our checks.

And it wouldn’t be better to, to serve you as citizens that are homeless.

You know, that, that, that need food to shelter kids that need education or helping stop legal immigrants from pouring into the country, which nobody wants.

And I said illegal immigrants, not immigrants, which is what our country was founded on.

So when you look at the younger generation, it’s like a religion to them.

And again, even took 45 years and under.

And, and people ask me all the time, and even during yesterday’s event where I took calls for over an hour.

The event was at from 7:00 PM and we finished after 9:00 PM Think about that.

Live unscripted, you know, I just have bullets and stuff this way.

I’m staying on track.

I had Daniel asking the questions.

Everyone got a chance to, to ask me questions once they sign up for the event.

And it was free, it was cool.

But they, they asked me, what about gold? How does gold fit into this? Think how the younger generation is looking at gold.

’cause they see and say, well, gold is 5,000 years old and it went from zero to 2000.

It took Bitcoin 15 years to go from zero to 43,000.

It’s actually higher than that.

Over 60,000.

But you get the point, there’s never gonna be more Bitcoin’s printed yet if gold surge is at 3000, 5,000, which gold bugs have been predicting for what, to Vancouver, I’m in this industry.

I speak a lot of these events, have a lot of friends in this industry, but some of the guys who are just diehard 3000, 5,000 for 20 years they’ve been saying that.

So if you see that within gold and it’s gonna surge, what’s gonna happen to the miners? What do you think is gonna happen? This is what makes it different from Bitcoin.

Because if it surges, you’re gonna see all these miners start producing a shitload of gold, A massive amount of gold because it makes sense.

And you can say, well that hasn’t been any big discoveries.

Well that’s because it’s not worth drilling where the prices currently are.

Prices are 2000 at record highs.

That would usually be great.

But inflationary costs for tires, drilling and, you know, to hire new, new employees have gone up significantly cutting into those margins.

So, you know, you’re not gonna drill for a product if it’s, you could sell it for, for a thousand dollars or $2,000 when it cost you $3,000 to actually produce it.

But if 5,000, it’s worth producing.

And this what makes it different.

Just like oil, when you look at oil, we have it in a limited supply of oil, okay? You can say Frank, that’s not true.

I mean there, there’s actually a limit, but we’ll never reach it forever and ever and ever.

It probably 20 generations.

And that’s a think about if oil hits $300 a barrel, another industry I’m very familiar with, I visit every single shell area.

Think about if it hits $300 a barrel, what’s gonna happen? These companies now that drill some of ’em 15,000 feet, They’re gonna drill 30,000 feet, 40,000 feet now and they’re gonna start building tons of new ships for offshore drilling.

Massive amount of ships, which costs an absolute fortune.

And it’ll probably cost.

When you’re looking at, at the price of oil, in terms of how much everything would cost, you could say it’s $200, which is insane.

They would never do it.

Right now with oil it’s 70.

But if it cost ’em $200 as an expense, when you put everything and just again, put all the costs incurred, in terms of the price of oil and you could sell it for $300, they’re gonna do that all day.

So now you have, you know, these commodities and these cyclical environments where you produce more.

And that’s why I never considered gold to store value.

You could produce a lot more of it if it goes higher.

Never consider a hedge on inflation.

In the past 10 years alone, what have we seen over the past 10 years alone? Seriously, we’ve seen, seen a credit crisis.

We’ve seen deflation.

We’ve seen a pandemic that’s shut down the world, followed by 9% inflation, right? of circulation created, they were printed over the past two and a half years.

We’re also looking at $34 trillion in our national deficit.

If gold hasn’t gone to 5,000 on this news, I have no f*****g idea what’s gonna drive gold higher.

Please tell me if you know and don’t tell me.

Well, it’s cut central banks ’cause they’ve been doing that forever printing more and more money than ever.

And gold has not surged on this.

You know, so, so you you’re talking about, oh, inflationary, we had an inflationary environment, massive inflationary environment.

Okay, now we have interest rates which are higher.

If it’s a store of value, you’re not generating interest on it, you’re better off keeping it in a money market account earning 4%.

So that makes, you know, gold relative, I don’t wanna say, you know, worthless obviously, but, but not a place that makes me wanna go in and buy it.

And people are looking at Bitcoin saying this is the asset that everything and all the reasons why gold was considered that asset to own.

Now you’re looking at, at Bitcoin, taking that over like the f you to everyone in central banks and store value and fear and stuff like that.

It, it’s Bitcoin, that’s what they want.

That’s the way it is.

It’s a younger generation get on board or whatever.

But now you have these fundamental change that there’s this inflection point where demand is coming in for many, many years that people want it.

You’re gonna need to see a lot more money flow into that.

A lot more money flow into Ethereum and that’s really, really exciting.

So during the event, I had over 170 people stay on the whole entire time, which I thought was a lot.

I offered ’em free crypto picks, answered probably 20, 30 questions.

Did a great job.

Got a lot of first time as a purchased, my Crypto Intelligence newsletter, which, you know, we offered a special deal to signing up for that event, which is on fire right now.

Uh, like I said, we rate the last four picks up over a hundred percent.

We’re seeing lots of gains.

And this is from really cool names.

but what I enjoyed most about the event I is how many people actually stayed on for over two hours for the live and scripted presentation.

And I felt like they really got what I was saying.

And even skeptics, right? Because you want to show people and say, no, no, this is gonna happen no matter what.

This is numbers that we’re looking at.

I hate throwing numbers ’cause sometimes that’s boring and that’s why I did that segment just now.

But you could see the fundamental difference and what’s going on now with all this demand.

And again, I’m, I’m assuming just 2% of that capital can come in, even at 1%.

It’s massive, but I think it could be 3% or higher.

So I also took them through coin market cap.

Okay, that’s a free site.

And you go in there, it lists, you know, all the, you know, in a row like based on market cap and thousands and thousands of them.

And I randomly went in there and said, guys, this is why you need to be into crypto.

And I highlighted randomly again, unscripted, just went in and clicked on probably about six or seven different names and highlighted.

And I clicked all.

And when you click all it shows the gains, how much the gains were and when you click all as a timeframe, most of these things for were from 2018, That’s not that long ago, right? Looking at six, seven years and every single one I clicked, the gains ranged from 4000% to 17000%.

There was one that I saw afterwards.

I didn’t click, it was up, I think a hundreds of thousands of percent, but think about a Think about that.

So Daniel’s on a live feed me and I put him on on the spot.

I said, I said 17000%.

Again, I’m doing this on a fly.

It’s 17000% right? During that cycle.

That’s what you could have generated over the last six, seven years.

What, what stock could you have generated 17000% on? So I asked him, I said, you know what Daniel? I said, figure this out for me.

If I put $2,000 into it, how much does that work to $17,000? And it turns out it’s $340,000.

That is life-changing money to many people.

And again, I wasn’t cherrypicking the best name.

You can click on almost the top 300.

And you’ve seen that over that cycle.

Now we’re about to hit the next cycle.

And my argument has been, as someone’s covering this for 30 years, is you can’t see gains like that in the stock market anymore.

You just can’t.

I mean, these things come out of value.

How do you get gains like that? So you get gains like that.

And I’m punch punching up something right here.

You get gains like that by investing in companies early.

Now that used to be the case with Microsoft.

Microsoft came out in 1986, had a paper here ’cause I actually wrote it down.

Okay, so, so Microsoft 1986 came out as $700 million valuation.

It’s 2.3 trillion Amazon, 1997, $300 million valuation.

Apple under a billion dollar valuation in 1980.

Okay? Those that in the past used to be able to buy some of this stuff.

Now you really have to be an a credit investor and know someone to really get in early, super early.

But that’s not the playbook on Wall Street anymore.

You’re not gonna see names come out with lower than a $200 million market cap, which is buying them at their early stage.

What you’re gonna see is this, and I have a screen up and I’ll explain it to you.

It’s like companies like Uber and the IPO date, 2019 $82 billion valuation that came out at, that’s the first time retail investors could buy that.

Which by the way, IPOs are liquidity events.

This is when all the insiders get out and sell you the stock.

Just like with SPACs, the liquidity event.

All these guys who are in are a dollar 50 cents.

The pipe deals, the warrants that, that didn’t have to disclose all this, all this stuff, right? That you don’t know about.

You’re buying at 10.

That’s why all these things are trading at a dollar, $2.

You know, some of ’em are going under space.

Uh, um, Chapman’s company, another one that, that I always make fun of.

We’re going into space.

I mean, you know, that thing’s going outta business to Virgin Galactic, right? They’re just, they’re not gonna make money anymore.

You look at Airbnb came outta 47 billion.

Coinbase came out a $65 billion valuation.

I wanna put that in perspective for you.

This is Coinbase.

Coinbase is up 300% this year and it’s up 300% this year.

Again, this came out April 20, 21, 60 $5 billion valuation IPO the first time that retail investors could buy.

And it’s pretty much half that market cap right now.

A little bit above that.

I think it’s in the $40 billion market cap.

And it’s up 300% this year.

But think about the first time you could buy Airbnb, DoorDash, snowflake, 33 billion snap, 33 billion Robinhood, Yes, we’re here, we’re buying this platform.

This is what we’re gonna do.

Meme stock’s, great, all that, right? We all talk about how was it Melvin Capital and, and how the GameStop you know, forced them into raising more capital and let’s put them outta business.

And now they’re doing fine.

But nobody talks about everybody else with the mean stocks who’ve gotten annihilated.

That’s what Wall Street does.

It beats the F out of you.

It’s built on inconsistencies.

And those inconsistencies they exploit and leverage the hell out of it.

And they always come in the form of the retail investors.

That’s what happened with SPACs.

That’s why you see all a sudden all these SPACs come out.

Wow, the retail investors are that stupid.

They’re gonna buy this s**t at this valuation.

I could sell it to them and then get outta this thing immediately.

Holy cow, I thought I was gonna have to hold this private company forever.

Now we can raise the valuation by 20X, sell it to these bunch of idiots, get out and make a fortune Chamath, $300 million.

He cashed in.

How much did you cash in by owning that sock, Virgin Galactic? You’re getting annihilated, you’re down 80%.

That’s the name of the game.

That’s Wall Street.

’cause Wall Street is a rig game right now.

It’s a rig game.

And the bottle is for these names to come out at these valuations.

Lyft, 24, you have Lyft, lemme bring this up here.

You have Lyft at 24 billion open door.

I mean, GoodRx, GoodRx in September 20, 20, $12 billion.

That’s their valuation.

I mean, Microsoft valuation, again, it’s a little over a billion in today’s dollars or whatever.

But you know, that’s the new playbook.

So where am I going with this? You can’t get these type of gains anymore at Wall Street, but yet I punched up randomly and do it yourself and hit all.

And you’ll see like, you know, over a certain period of the gains that these names have made.

Because you can get in at, at at 20 million, 30 million, $50 million valuations, where some of these things go into $50 billion valuations.

Uh, and that’s why every single investor should allocate or needs to allocate a portion of your speculative capital into crypto.

And when I took over Crypto Intelligence, you, we had that guy who ran it left.

And I made a joke about it with Daniel Daniel’s like, ah, I don’t really want, I’m like, oh s**t.

You know, it forced me to learn about this industry.

Uh, and I was able to pass on a lot of that to investors and the things I learned, and more importantly, the things we avoided.

Some guy asked me, how come you don’t stake? And he actually said the same question because right now I stake that my money is at, um, did he say Celsius? So I don’t know if I’m gonna get it back.

And when you stake, basically you lock up your token, you generate interest on it.

And I’ve never done that in my newsletter because I had Zach Prince on who’s from block fi, good company, good guy know they went under, um, just got over-leverage, but not a, not a bad cut.

They, I mean, not over-leveraged.

They had a lot of leverage to FTX, unfortunately.

Uh, so they went under and I asked him like, how are you able to generate seven, eight, 9% interest? This went interest rates to zero.

And he couldn’t give that answer.

And I said, look, for me talking to this many people and people following my advice, I can’t tell you to do that.

I said, you could do it on your own, but I’m not in this for three, 4% extra returns when I think that the returns you could generate from this sector are some of the ones that we’ve seen over the past five months.

Names are down 50, 60% are up a hundred percent.

You know, you see thousand percent returns.

Or in the last market in 2021, the average position was up over 600%.

I got my ass kicked in 2022.

A big fallout in the entire industry.

But we were smart.

Like we were, we, we didn’t use stop losses, right? Which I always say you have to use because you can’t really use ’em in this industry.

’cause you could whip outta these things in, in, in minutes.

So what we did is we only allocated 6% of our capital.

So it was 2% of a time.

So we were averaging down in these positions.

So if the position went to zero, the most you will lose out of the money you have in that newsletter, allocated to that position is 6%, right? And, and that allowed us to really hold onto some of these names because they’re great names and, and, and find the great names in the space where the util these are software companies really where the utility is the value of the company and that, how much that utility’s being used.

But we were able to, to to really, you know, again, we we didn’t do that well, but now, you know, the average position’s up 140%.

So, and that’s outta 16 positions in the newsletter.

So follow someone.

It’s not just Crypto Intelligence.

Again, we offer a special deal for everyone that that hopped on board yesterday, which is really, really cool.

Uh, but follow someone and get used to this industry.

It’s very, very important because it’s just the beginning.

And I, I use the word inflection point.

I, I want you to think of the internet and how big it was.

Okay? In the nineties, 2000.

Now look what happened over the past 10 years.

We saw data analytics become huge.

People started collating data.

Then you have 5G which increases the speeds dramatically.

And then you have cloud that came out, which provides unlimited storage of all the data.

And now you can analyze it, right? Then you have social media trends, you have streaming trends and all these people going on, even so many people, right? The the whole lives are, are the internet now.

And now you’re able to throw AI on top of that to analyze these data analytics, to analyze the patterns, able to predict what you’re going to do in the future.

This is like 10 years, right? The internet’s been around for 25, 30 years, right? This, this is the innovation that’s taken place and this is what’s going to take place within crypto now.

So the innovations that are gonna drive the next wave, the ones that you could generate so much money on are gonna come from connectivity.

Blockchains don’t talk to each other.

Now, there’s several companies out there that, that allow data to go to separate blockchains at the same time at the same speed, which is huge.

Uh, you have the, the connecting the banks, the banking industry, ’cause they’re all launching their own blockchains for tokenization.

Tokenization is hundreds of trillions of dollars.

I put up some stats and figures and said, you guys don’t realize how big tokenization is.

We’re right in the middle of this trend in terms of we’re one of the first companies to tokenize our, our company, right? So people have an equity stake and we trade on tZERO, but tZERO drew the SEC and things like that, that it’s, it’s very difficult to market for them for other players in this industry.

You’re seeing Coinbase turn security tokens now are gonna start listing them, but you know, they’re very, very careful.

So, you know, the liquidity is gonna come and it hasn’t come yet.

But it’s something that, that is an amazing trend that I explained to you guys numerous times.

But bonds, real estate, new stock exchanges, I mean, if you’re looking at, at the banking industry, hundreds of trillions of dollars that they control and they make money off of it, they just make, and they’re the middlemen making money off of everything.

It’s a reason why they generated over a hundred billion in sales.

The top four banks, a hundred billion in sales, in 30 billion profits last quarter.

Think about that for a minute.

Last quarter.

That’s what they generate.

And what do they produce? Let me know the middlemen.

Just like a, a stock exchange, right? Remember New York Stock Exchange? I remember it used to be down there, it used to be jam packed and now there’s nobody on there.

But do you really need an exchange when you have blockchains, digital ledgers that keep records of every single thing that you can’t hack? I mean, the hacks come with the bridges trying to communicate between these separate blockchains and now you’re getting rid of those and limiting the damage.

And by the way, I think it, it, you know, people say, well, I’m worried about crypto and hacks.

I think it was 3 billion, 3.8 billion in 2022, was stolen through crypto and the banking industry, they lost over 10 billion in cyber crimes.

Stat.

You’re not gonna hear, you’re always gonna hear the s**t and the bad s**t about crypto, that’s their job.

Because crypto disrupts the biggest industries in the world.

It disrupts the trillion dollar companies.

It provides us open source where we don’t need these people to have these closed walled gardens and not sharing, okay? It allows everyone to participate, get familiar with the term.

D in it stands for decentralized physical infrastructure networks.

Physical is the key word there, right? Usually digital.

But what it does is it use crowdsourcing.

And it’s to, to, they have a company, it’s a mapping company that I showed.

I don’t wanna give it away because, you know, you gotta watch the event.

Uh, that actually you could buy almost like a GPS system and you’re mapping things out yourself.

And as you’re doing that and providing information, they’re paying you tokens to do that.

So now what’s the benefit is you don’t have Google forcing, you not even telling you, tracking every single thing you do where you could use this other service that’s not gonna freaking track me, right? Or maybe, you know, more selection.

’cause it’s, you can check off as many boxes as you want.

They, they track you no matter what.

And that’s their job is to track you to steal all your information and sell it to advertiser and make a fortune off of you, off of you, you the customer, right? And you, it’s not even like I’m buying their product, I’m using their product and they’re, they’re basically using me by not even telling me.

There’s a lot of features.

I just bought a new computer.

Seriously, another story here.

I just put a brand new computer and I shut off all the freaking things, which are all checked.

They should not be checked.

Third party advertisements, send things, diagnostic everything, right? Send s**t out to everything without ’em knowing.

Now I went to two other areas in the computer and it was two other areas where those things were still checked, which should be illegal, right? And this is from Microsoft for Windows and all this s**t.

That’s why they, they, they force, you know, windows 11 ’cause it’s gonna operate where, you know, everything that you don’t wanna use in Microsoft, they’re gonna force you to use.

That’s what we’re looking at an open source environment looking at, at, you know, gameify, which is, which is huge like play to earn where you could make money instead of buying different product skins or guns and, and through Fortnite or through Roblox, right? Minecraft where, you know, Microsoft, epic, all these companies make their money.

Now you get to create this stuff.

Now you could play, you know, a first person shooter game and join a team like in Call of Duty and play like you would do in fantasy football, $10 a team or a dollar for each person you shoot, right? And, and everything you create, someone else could buy it and you make the money.

That’s the future.

That’s what this is disrupting.

And it’s doing it without having middlemen.

And that’s why you see Jamie Dimon coming and say, well, crypto is b******t.

And that’s why you see, you know, Elizabeth Warren come out and say, oh, Hamas $130 million was funded, which is total horse s**t, right? Even her own people said don’t say that, that that’s not true.

And they’re trying to force this because they want to provide rules that everyone has to come under the banking industry.

And when they do come under the banking industry rules, what happens.

It means that they f*****g control you.

There’s a reason why there’s only four large cap banks and nobody could break into that sector.

No one will ever be able to break into that sector.

You can’t.

You could do it with Tesla in the car industry.

You could do it with Meta in terms of technology.

You could do it in Nvidia, right? Surpassed Intel, right? Again, startup Small became the, the largest player at the industry leader.

You can’t do that in banking.

The laws don’t allow you because of the ratios and they control it.

That’s why they were able to shut down Signature Bank and, and, and Silvergate and without any illegal activity.

I mean, you’re talking about Barney Frank who created the laws, his name’s on the freaking bill who created all these laws that made the banks bigger.

They closed the bank that he was on the board of without even f*****g telling him.

That’s how powerful it is.

So the more they’re not coming out and telling you, don’t invest in crypto ’cause we really care about you.

We know the politicians don’t give a s**t about us.

We saw during COVID, we see it through the, through the banking crisis, right? That they bail out all the banks.

Nobody went to jail.

We see, it’s, they wanna control you.

That’s what fed coin’s about.

It’s way they control you.

They can control your money.

That’s why they’re coming out and bashing it.

And those are news stories you pick up.

But when you look at the numbers under the hood, this is the most disruptive technology in the world.

You look at AI and you’re like, holy s**t, AI’s great.

Oh my God, it’s amazing.

I mean, it’s gonna be maybe a trillion dollar market, 2 trillion, 20, 30.

I mean, you look at a tokenization, it’s hundreds of trillions of dollars and a communication.

How you talk to these, say, this is where the next generation Dao, which is governance tokens, instead of having a board of directors, you have everybody vote.

You know? ’cause a lot of times you think you have votes, but they’re really BlackRock’s votes and, and Vanguard’s votes in, in terms of terms of, you know, shares and, and voting and stuff like that.

It’s all b******t.

Believe me, I’m, I’m part of that industry and I know it’s creating those companies and certain types of classes where you’re gonna get, you know, 10 to one shares.

I mean, you know, there’s no way that, that you’re gonna see board seat changes, at Disney.

It’s not gonna happen.

I mean, you could b******t all you want.

Try to get everyone on your side.

It’s not gonna happen.

It’s just not gonna happen if you don’t want it to happen.

So, you know, it’s really hard to win those fights.

What he’s trying to do is just bring attention to it of how Disney sucks.

Right? Now you guys need to change.

We own a lot of shares and that’s gonna result in the price going higher.

Hopefully we get a board seat, but most of that time it’s because the CEO says, okay, hey, I think you could help us out.

Let’s give you a board seat.

It’s not because they win it.

So that’s, that’s what’s going on.

’cause when I look at stock exchange, when I look at finance, their days are numbered.

Banks are numbered in terms of the control that they have over people’s assets and making a fortune in from creating nothing and charging you fees.

And it’s sad because the less money you have it then the more fees they’re gonna charge you, which is really f****d up when you think about it.

So there’s lots of names within crypto that are gonna be huge beneficiaries.

Names you could still get into Mark caps below Again, something you can’t do.

There’s not a company that’s gonna, IPO at a valuation below that, especially a high cap growth company that’s not the playbook.

Inflate the s**t outta the valuation.

This way you’re raising a ton of money for the company.

The people who are doing this deal get out at a very early price, the liquidity event, and then see what happens.

You have most companies wind up not being able to grow as fast as everybody predicts.

But then sometimes you might get a Meta, sometimes you might get some of these companies that, that fit into their valuation and, and that continue to grow.

But it’s not often.

But you’re not getting in at those old valuations which provide life-changing gains.

Okay? So you’re interested in the replay of that.

Uh, you can go to Curziocrypto.com, I suggest you’ll watch it.

It, it’d definitely be worth your time, especially if you’re a skeptic since again, I I, I’m, I was showing facts, figures off the cuff, unscripted.

But it’s gonna challenge the way you look at this industry.

And I always love that.

If I don’t like something, I wanna listen to someone who’s passionate about it, that loves it, and not just because of how they feel, which a lot of that has to do with Bitcoin and even gold.

It’s, it’s, it’s a personal feeling now.

It’s a fundamental shift.

And just seeing the numbers being like, holy s**t, this is really gonna make Bitcoin and Ethereum explode.

I mean the prices have no place else to go but higher.

and instead of selling these things after two years after Bitcoin Halfing, you’re not gonna see that sell off.

You’re gonna see this and that and maybe here and there and then a couple regulation things coming in.

where it’s a book and you can look at it and, and, and even EU came out.

Uh, UEB came out.

Uh, so it’s forcing the hand of the US and they’re even creating like PACs.

Now between the Ripple CEO, you had ancient Harwood’s, the biggest venture capitalist and Coinbase, and you know, they’re raising money, hundreds of millions of dollars, likely.

That’s how much it’s gonna be in there to fund the candidate.

That’s really gonna be pro-crypto.

And, and you, you better be pro-crypto.

It’s a very, very big audience.

So, um, going into Bitcoin, one last thing I’m gonna say here.

You know, being forced to take over this product and, and, you know, ’cause our editor left on it, um, allowed me, it resulted me, um, because I was a skeptic in 2017, but allowed me to understand this industry, see what was b******t, see these technologies up front and it made me buy Bitcoin, Ethereum.

And it was one of the biggest winners in less than two years, which allowed me to build a, a new house, a big house, send my kids to, to, you know, one of the best schools in the southeast.

And no, I’m not apologizing for that because I worked my ass off to get where I am.

If I could share two lessons with you that I’ve learned is, is don’t be afraid to learn new things.

Uh, it it’s, I know it’s hard as you get older ’cause you’re sent in your ways.

I didn’t really want this newsletter.

Dan didn’t want this newsletter.

I’m like, oh s**t, I gonna have to hire someone.

’cause the guy, the guy left abruptly and the guy’s a little bit of an a*****e.

I never talked better about my ex-employees, but that guy deserves it.

Uh, I don’t wanna mention his name, but learning about this industry and seeing this stuff early on was just fascinating to me.

Uh, that’s one lesson.

Two, you always want to give yourself the opportunity to make fu money, money that could actually change your life.

And that’s really what we do this for.

When it comes to investing, you wanna have that opportunity and you don’t have that opportunity in stocks anymore.

S&P 500.

You can make money.

Small caps would make money.

I’m not telling you to, to not invest in stocks.

I’m talking about your speculative capital.

Okay? If you take your speculative capital, this should be your percentage here that you are putting and allocating towards crypto.

If you’re following the right people, because this is a sector you could generate.

Monster, monster, monster returns, gamechanging returns.

It was game changing, life changing for me.

Uh, and and that’s what this sector offers you.

And that’s what the, the, that’s what it was about.

I’m not saying, you know, on 17,000 was four thou.

I’m saying that you have the opportunity and there’s so many great innovations to technology where even the great innovations and AI stocks and everyone has 20 AI newsletters and AI newsletter system newsletters that are telling you where to buy a stock and where it’s gonna trade tomorrow, and all this b******t that you probably bought and spent thousands of dollars on reality.

How many companies really have AI technologies, um, to the point where that’s generating, save even more than 10% of revenue for the company.

Name them.

Maybe two, three publicly traded companies outside of Nvidia.

Okay? I mean, you know, meaningful revenue, not, no, not even the big guys, but everyone’s ai, you get to ai, this is, yeah, newsletter.

You could buy all these stocks at AI when, when Microsoft even said they’re not gonna see anything meaningful from AI until, you know, later on in 2024.

And that’s a company that’s spending tens of billions of dollars on this trend.

It’s amazing.

It’s a big trend.

But this is something that’s different.

It gives you a chance to get an early AI names that do great, especially in a private market, get taken over.

Nvidia has invested in so many AI companies, it’s incredible, right? To, to, to keep their edge.

Same with all of the largest companies in the world, right? With trillion dollar mark caps.

They’re all investing in some AI companies.

And the ones that avoid that and come out, usually come out at valuations that are gonna be 20, 30, 40 times sales.

And again, you can’t participate in those gains because you can’t invest early in them.

And that’s how you make massive gains for yourself life-changing returns.

And you could do that in crypto.

So a lot of that came over and I was really proud of it.

So not a lot going on today in the markets, right? It’s kind of getting closer to the holidays.

So, most companies reported earnings already, but we did have numbers from one company that I wanna go over before I leave here.

And it’s FedEx, right? And FedEx is a Dow component.

Uh, they were pretty bad on the surface.

Stocks down over 10% and FedEx missed earnings and sales estimates, which is always gonna hurt, but it’s always about the guidance, right? So you could come in a little bit light, but if your guidance is really high, the stock’s gonna take off.

Well, they lowered their guidance.

They’d say they’re now expecting sales will be down year over year.

They’re expecting it to be up slightly year over year.

So it’s a second quarter in a row where FedEx lowered sales estimates.

Uh, the company did the worst of the worst.

They blame demand issues, which is never good.

It wasn’t like, oh, you know, supply chain issues.

Oh, the weather is usually good with these guys.

You know, this is like, hey, we’re not seeing, the people are not spending, they’re not using our services.

So slow demand from one of the biggest transportation companies that ships tons of consumer goods, especially during the holidays.

This is how I look at this in this report.

’cause this is important.

This is a company that affects that.

It’s revolving around so many different industries, directly tied the consumer.

Here’s how I look at it, which is probably gonna be different from other people.

Look at it.

Is this a one-off? ’cause other transports are actually doing well today.

Usually you’ll see a company, a a bellwether get nailed, especially in technology.

If it’s a chip company and the whole chip company comes down, especially if it’s relevant to, you know, say if they have a, you know, a, a huge allocation, of their revenue goes to say automotive, and they miss, then all the companies that have that, you know, a higher allocation in terms of revenue to to automotive are gonna fall.

That’s what you usually see.

This isn’t happening.

So I’m not sure.

I’m not sure if it is or not.

Uh, because if it’s not a one-off, it’s a much different picture than what is being priced into the market.

’cause if you look at the latest data on retail sales, they’re strong.

You look at the latest data on, on employment, it’s strong, right? It’s still the 50 year low.

And most people believe that the consumer’s doing good.

We know that not all consumers are doing good, but according to the markets, people that spend money is doing pretty good retail sales, holiday sales supposed to be through the roof as well.

This is telling us something different.

Also, while earnings did come in lower than estimates, I found this fascinating.

They still grew.

This is looking under the hood.

They still grew 25% year over year, 25%.

Put that in perspective.

The average company has grown 4% as the last quarter year over year.

And three quarters prior to that were negative.

You are looking at stock growing earnings at 25% year over year, and it’s trading inches, 13 times forward earnings.

So compare that to Apple, who’s not growing earnings but trades it 30 times forward earnings.

I mean, you look at, at, at Tesla, I mean, in short, FedEx is getting nailed today because they didn’t meet the estimates.

And that’s all that matters is those estimates, right? You’re not looking at growth, but they, they’re getting nailed while showing 25% earnings per share growth, which is much, much higher, much for how many x times higher than the 4% that everybody reported recently in the past quarter.

The average company S&P 500.

Shouldn’t Apple be getting nailed here? What about Tesla? What about many of the tech companies trading on its same valuations who are not growing earnings faster than the overall market? Is this a new trend? Is this the theme going into 2024? This is just the stuff that I’m asking, just asking, right? Because I, you better hope not because it means that a lot of companies, especially in technology, are gonna need to be rerated.

And I’m taking that from one company.

I was just surprised to see a company that grew earnings by 25% year over year.

But the analysts are a bunch of idiots and they had to raise their estimates tremendously.

You know, when nobody raises their estimates to Apple, they all have buy ratings on Apple.

Well, Apple buy ratings, all of ’em across the board, buy ratings, buy ratings, but they don’t expect earnings to grow.

You know, that’s fine.

So you’re gonna beat the number every single time.

Apple’s gonna beat just ’cause they buy a shitload of stock, right? Which is gonna inflate their earnings.

They with Nike, that’s how they beat their estimates.

’cause they’re conservative.

Especially if you buy rating, you’re an analyst, you wanna be conservative this way, they beat the number and the stock’s gonna go high, right? That’s what you would do as an analyst.

You don’t wanna have the highest analyst on the, the highest estimates on the street because if you don’t meet them, you’re gonna see what happened with FedEx today.

Even though you’re showing strong growth, because it didn’t meet the estimate on the bottom of the CNBC screen.

So these are just some of the questions I’m asking.

One last thing that I took from this before I go in, in terms of, of how I look at stocks.

And this is how in my mind, you know, I think this is how I think, and it could be the same as some people are different.

’cause some people would be like, okay, I’m, I may buy FedEx on its pullback, maybe I’ll sell whatever.

Forget about looking at it.

Try to zoom out and look at the bigger picture for me after this quarter.

It makes me wanna go long.

Amazon.

’cause FedEx said what what really hurt the most is its express unit, which is its largest segment.

So demand slow.

And based on the tone, it sounded like they sewed considerably.

They didn’t use the word, but it’s still conservatively.

And FedEx said customers shifted to cheaper services, which is Amazon.

And when I look at Amazon, what do you think happens to companies like UPS and FedEx when Amazon says, Hey, we’re gonna offer one day free shipping.

And I’m gonna be honest, Amazon, you try one day shipping, it’s amazing.

Right now you’re not gonna get one day shipping.

Not everything’s one day shipping, okay, maybe I would say probably 60, 60%, maybe 65%, you know, 30, even though they say it, but they’re providing one day by you get it the next day.

So if you’re doing that, and this is their express division, think about what UPS and FedEx need to do to keep up with their competition.

Okay? This isn’t direct competition, right? So how do these guys compete with Amazon? It’s gonna require massive spend on new planes or, you know, older planes or whatever, trucks, employees, supply chain upgrades, all that technology behind that.

While your competitor, while you’re doing this over the next, it’s not gonna take one quarter or two quarters, it’s probably gonna take maybe a year.

Now, you, you, you’ve seen Amazon take a massive amount of business over this time period.

So what I see what Amazon is doing here, it’s just a strong buy.

And it’s not just because of that, it’s just firing all cylinders.

You have AWS have to have a huge year.

Marge expected to explode higher.

I think they’re gonna take market share away from reserve for the first time because price is getting very high.

I hear from a lot of people, that I know that actually use, you know, Azure and Amazon, that Amazon is really have their sales departments out and making a pitch and starting to see business grow a lot faster.

It was always a massive growth business.

But people are like, well, Z’s taking market share.

Well, they’re ranked number two.

And those two, I think control, I mean, man, last time I looked at was it something like 55, 60% of the industry, Google’s like a very small amount in their third, and everybody else is spread out between Oracle and IBM and stuff like that.

But AWS is, I mean, you’re gonna see margins exploded in the industry.

They’re killing it and streaming with sports and combining it with their prime.

It’s one of the, the companies outside of Netflix that’s really doing great in streaming retail business is a steady business.

Yes, there’s gonna be more competition coming in from China with companies like Sheen, amazing company.

and also they’re gonna be an industry leader in the biggest industry of all, right? Well, within, within technology, at least when it comes to the stock market is, is AI.

And why they gotta be so big, because they have direct ties, kind of like what, what Meta has and social media, and they’re saying everything they want.

People talk a lot and say different things on social media with Amazon.

They know for a fact what people like, what they love, what they buy, and when they buy it.

And they’ve been tracking these trends for two decades now.

You throw AI over the data, they collect over 300 million of their customers who buy s**t like every day.

And I know that, ’cause I’m gonna go home today, just like go home every day and it’s gonna be three boxes from Amazon, right on the first step.

I’m like, okay, and I’m always taking ’em in.

I have to come home from a long day of work.

Yesterday I got home at 10:00 PM there was three, four boxes.

It is Christmas and we’re on auto delivery for paper towels and dog food and cat food and stuff like that.

But anyway, when, when my wife’s like, Hey, you know, Mike should be coming today and she knows his first name, you Amazon’s driver, it’s probably not a, not a good thing.

So, yeah, but that’s everybody.

And I know I’m not speaking for myself, my wife and my family, um, but when I look at Amazon in terms of ai, they’re gonna be one of the biggest winners just for the data that they have when they collect it.

I mean, they know exactly what people love to purchase.

And you don’t really know that.

I mean, you know what people say, you know, where they’re traveling, you could predict a little bit and what they like to do and what sports they play and how they post the pictures and stuff like that.

But when you see these patterns of how they spend, when they spend, when they, I mean in terms of data collection, Amazon is number one.

And now you throw AI in that and the amount of money they have to spend on this trend, it’s incredible.

It’s gonna result in a much different experience from consumers and everything.

Uh, I think Amazon’s a really strong buy and this confirmed it because FedEx can’t compete with them, especially with their express unit.

Expect to hear the same from UPS.

So we’ll take a look at FedEx again, it’s down 10%.

Growing rooms with 25%, again, 13 times full earnings, could be a buying opportunity.

I’m gonna dig a little bit more.

We saw Oracle fall as well.

I think that was opportunity.

You know, there’s just different opportunities that you see with within these companies where some of ’em deserved to fall.

Some of ’em don’t.

Amazon was a good buying opportunity when cloud came in a little bit slower.

You saw that.

The same thing with, with Google turned out to be a buying opportunity.

You know, look under the hood a little bit and see what’s going on.

But again, I gotta dig a little more and see what’s going on.

Seems like this is over done.

So for guys who have Wall Street Unplugged Premium, I’m gonna see you tomorrow.

Those of you who are not subscribed to Wall Street Unplugged Premium, it’s freaking $10 a month, a hundred dollars a year, which is less than what you’d pay to fill up your guest tank in a week.

And ideas in that portfolio, I mean, Dan’s been doing a fantastic job.

He does a portfolio review video, portfolio review.

We have lots, lots of names.

We recommend, name basically every week in that portfolio.

We’ll come out with one tomorrow.

Uh, but easily many of those names have covered the cost of that newsletter for the next 10 years.

For those of you who are not subscribers, I really wanna wish all of you and your family’s, you know, Merry Christmas, happy Holidays, um, you know, spending time with the close family is the reason why we do this.

It’s the reason why we invest.

We try to make a better life for our family and our kids and stuff.

So, so enjoy this downtime.

Seriously.

And that’s something I’m, I’m actually speaking to myself because, you know, I work really hard sometimes and you know, I’m like, holy s**t, you know, I gotta dial it back a little bit and, and take a day off here or there and hang out with my family and have some fun and, and you know, I see my kids a lot, but still, just even when I see them sometimes I’m thinking of work and you need to pull back a little bit.

Enjoy it, enjoy, working hard because no matter what background you come from, you know, race, gender, what side of the aisle on you’re on or whatever, the one thing, the one thing we could all agree on is, is family, right? And, and making a better life for our kids.

Right there, there’s no debate in that.

So no matter how much differences everybody else has, that’s the one thing we agree on.

So enjoy the holidays, enjoy your families.

Love you guys.

Thanks so much for listening and I’ll see you guys take care.

Announcer: 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.

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