Transcript was automatically generated.

0:00:03 – 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.

0:00:16 – Frank Curzio

How’s it going out there? It’s October 22nd. I’m Frank Curzio at the Wall Street Unplugged podcast. We’re back in the house and I’ll tell you what’s really moving these markets. Daniel Creech what’s up, man? How’s everything? 

0:00:31 – Daniel Creech

Everything’s good. Frank, it’s good to see you. I missed you last Thursday and you’re going to miss me this Thursday too. Ooh, Ooh, yeah. All you subscribers get ready. I get a chance to make everybody mad again tomorrow. 

0:00:41 – Frank Curzio

Mad again tomorrow. Daniel’s on his own tomorrow. Yeah, I got to go to the actual. I got to go to our venue because we have a conference in a couple of weeks, the one conference. If you’re a one member and you haven’t signed up, we still have a couple of spots left, believe it or not. So not many, but if you’re interested in coming, give me a shout. Fort Lauderdale, Pier 66, going over a lot of this stuff this weekend, Make sure everything is perfect. Amazing guests we just got Frank Holmes to sign on. Oh, nice, yeah, which is great, Frank Holmes. Frank Trotta from Battle Bank, you know we’re going to have all the CEOs from all of our private investments, almost every single one of them. From Sugarfina. Scott LaPorte is going to be there. We’re going to have Scott Cohen talk about RAP and a new technology displaying some of the stuff it might be displaying drones live. Okay. 

0:01:26 – Daniel Creech

I playing drones live. Okay, I don’t know if I’m going to get shot by a drone, though If one of us is it’s you. 

0:01:28 – Frank Curzio

You know what yeah. That’s why your name’s on the door. Frank, my nephew’s coming. That’s the my nephew’s coming. Oh, yeah, yeah, throw him under the bus. Yeah, man, throw him under the bus. I’ll say hey, and he’s not here because he I don’t know why, but he flies to Islip in Long Island. He flew Frontier. I’m like don’t ever fly Frontier, so anyway, I got canceled. 

0:01:48 – Daniel Creech

I was curious. I knew he was taking a quick trip, so having issues? 

0:01:51 – Frank Curzio

Yeah, so he’s supposed to be back in the office because I was going to rag on him because of the Giants. 

0:02:02 – Daniel Creech

Oh man, did you see that game? And I thought, oh, you know how that is. It’s like well, I’m not going to text her, I don’t want to rub it in. Well, then they come back. I didn’t watch the game, Frank, but I’ve heard fantasy players and guys around that I’ve listened to. So was it a record or just? 

0:02:23 – Frank Curzio

It was a record. Come back. I mean I’m going to tell you touchdowns in the fourth quarter and still lost. That’s how insane it was. I mean, I’ve never seen anything like it. And I do have Bo Nix on my fantasy team. And now 7-0, I’m loving it right the only undefeated team, which means I’m definitely losing in the next couple weeks. 

0:02:36 – Daniel Creech

Yeah, you’re going out. First round of playoffs. 

0:02:40 – Frank Curzio

Yeah, but what annihilated? They annihilated two weeks ago and now they’re going to play Philly again, which Philly’s finished by over seven points. I really like Philly. I think Philly’s going to come back from that game because they really played bad that time. But a lot going on. We’ll get to stocks in a minute. Just even politics the shutdown’s still going on. 

Instead of focusing on the shutdown, I think everyone’s talking about Donald Trump building that big boardroom for the White House. And you know I find it funny I really do Of what the Democrats want to argue about. You know, pick your fight. There’s so many fights you could really pick, right, you could pick, say well, you know illegal immigration is a lot of people that worked here for a long time and you know it’s not fair and I get it. You know you’re the back and forth and stuff like that, because they’ve been here for such a long time and you’re kicking out of the country. Like it’s different arguments, like you can go after, right, but building the White House and the left, they all got the memo at the same time. That’s what they do, right, they’ll get the memo at the same time, you know, because they all post at the same time. They all say the same exact message all the time. They do it all the, but they’re saying they’re destroying one of the biggest landmarks in our history and taxpayers should be furious. This is your house and whatever. 

So I just found it funny the party that knocks down statues of Jefferson, Lincoln, Washington, which were funded by taxpayer dollars, says that taxpayers should be furious that Donald Trump is revamping the ballroom with his own money, by the way, not to mention if you look at every president that’s come in, done something different for the white house. Right, I mean, they would talk about that. You know, teddy roosevelt, uh, added tennis courts, fdr and a movie theater, having a bowling alley like you know, Obama, and a basketball courts it’s, it’s, you know. But? But just choose your argument because I could. I could tell you who the hell cares about the white house. I mean, I would say 95 percent of Americans never visited it. It has to do with how our president is living in a freaking building. 

I mean, do you really care about the Lincoln Monument? Does anybody really? You don’t care about this shit. Just pick your fights. There’s so many fights that you could pick and so many things, but just this fight and then you have what you have Newsom, you have Pelosi, you have MSNBC they view all at All the same time. Right, it’s all the same time as last. Right, your taxpayer should look at what he’s doing to your house. It’s just like, come on, guys. I mean can we get along? Should we be focusing instead of that stupid shit? I mean the lockdown is getting serious now. I mean it is. I mean it really is, when you’re shutting down government data and a lot of stuff and nobody really wants to come to the table into the markets right now, obviously it’s not. The markets keep going higher. 

0:05:03 – Daniel Creech

I like your point on the ballroom, I saw a what do you call it? A drawing or the vision of what it’s going to be. It’s massive. It’s going to seat 1,000 people inside. Of course, it’s going to be decked out in gold. The only thing I’ll tell everybody that is anti-Trump is I know what you guys are thinking. You’re probably right. That’s where he’s going to put a crown on his head at the end of his term, Frank, and declare himself emperor. So everybody stay tuned for that. Yeah, anybody. Real quickly, though. If any politician is arguing about the other side spending money, you know they’re being silly. Oh my God, if you can’t laugh at it just ignore people. 

0:05:35 – Frank Curzio

Yeah, on both sides. 

0:05:36 – Daniel Creech

They can’t even get it is pathetic. 

0:05:38 – Frank Curzio

So let’s talk about stocks. A lot going on and I want to start out basically with AI. A lot of news with AI we’re going to get to Netflix in a minute, a lot of companies reporting and we’re just starting earning season. Basically, the banks really started off last week, but now really-. 

0:05:50 – Daniel Creech

We’re getting into the heart of it. 

0:05:52 – Frank Curzio

And next week, I think, is going to be one of the biggest weeks in terms of the S&P 500. But a lot of talk about this AI bubble. I talked about it in my AI newsletter yesterday. Know, one of my friends and your friends is is Cuppy, who, if you don’t follow, follow him. He’s great, he’s very smart. I had him on a podcast a couple of times. I’m going to have him on again. I asked him to come on about three months ago and he said he was like you know, just in the middle of nowhere for two months and he said I’ll definitely come on. 

0:06:12 – Daniel Creech

Yeah, he owns a ranch. 

0:06:22 – Frank Curzio

He’s all you know where’s ROI and this stuff, and I would love to have a debate with him on this. Because, first of all, if you’re talking bubble, when you first talk bubble, it means that usually things are going to go a lot freaking higher right before the bubble pops. And let’s talk about how bubbles are formed. Bubbles are formed when you have this irrational exuberance. You have this massive demand that everyone’s like I got to get in right, and these create massive more supply. So supply just has happened. You know, across every single tech industry. You know sectors. It happened during the dot-com boom. Right, you have all these companies. Just everyone tries to take advantage of that trend and then demand outstrips supply and then you see this massive crash and a bubble burst. Supply is not outpacing demand here. 

Okay, they’re still building data centers. The amount of money that these hyperscales are spending every single week goes by. We highlight the deals. Another deal that just went there was uh, meta, blue owl capital building a 27 billion dollar data center in louisiana. Blue owl is going to own 80, meta is going to own 20. Uh, they’re going to oversee the construction and property and it’s going to be built by 2030. Just constantly seeing these announcements. I like that Microsoft’s actually partnering with people, more people getting involved, this private equity or whatever. I don’t know if you heard this about the size of the area, did you hear it? 

0:07:36 – Daniel Creech

Well, I was going to ask you because you’re a New Yorker and they overlay it. It’s like if it was in Manhattan and it takes up everything in Manhattan. The only other thing we need to comment quickly on that is because we’ve been on the par here with Larry Fink, blackrock shocker, big investor in that one there, Frank, yeah, yeah, not a shocker. 

0:07:51 – Frank Curzio

Yeah, 1,700 football fields, it’s going to be 17. 

0:08:02 – Daniel Creech

I don’t know if the whole data center is going to be that big, but that’s the area they have allocated, which is insane. 

0:08:05 – Frank Curzio

Okay, yeah, I did. That’s funny, it was perfect. Look, he was wondering where the ROI is coming from. People are like, how could they spend that much money and you’re not generating a return? Let me tell you something If you want to see the ROI and I don’t know where this argument comes from if you really want to see the ROI, look at the next like 10 days, because that’s when you have Microsoft, meta, amazon, oracle. I want you to pay attention to their margins. I want you to pay attention to their growth across all sectors, every single sector, whether it’s AI, infrastructure, cloud, whatever it is. You’re seeing massive growth across every single layer of their businesses. These are trillion-dollar businesses and most of them are trading below 30 times forward earnings, which is insane. You’re looking at banks Wells cut 24% of its headcount. You’re looking at who was it. Is it Conoco? I think that cut like 20%. I forget which one. 

0:08:53 – Daniel Creech

It was a major oil company. Major oil company, I’m pretty sure it’s Conoco. 

0:08:59 – Frank Curzio

You’re seeing what AI is doing and they can’t really say it publicly, right, but you’re seeing it because their productivity, their margins are going higher and they’re cutting costs while the stocks are at all-time highs right, and they’re able to have this productivity and this growth. And people wonder why Palantir is going through the roof and it keeps going higher and higher and higher. I might’ve pulled back a little bit here, but when you have companies that can come in and revamp your entire operation as a Fortune 500 company and you could save 10%, 15%, it’s a game changer, it’s massive. I mean, if you save 5%, that’s what the S&P 500 is expected to grow the next year. So if you can grow 5% just by cost cutting and grow those earnings, you’re matching the S&P 500, not mentioning any other part of your growth business. But when you see what AI is doing and how it’s affected education and healthcare just getting more drugs to market, drug discovery, curing cures for these diseases now Just the oil and gas industry there’s so many applications across every industry. Education, how it’s helping students they see 25% more productivity. There’s studies out there and they love using it. They love using things like ChatGPT as a research engine. So when you take everything as a whole in the ROI, I see it. I see it because I cover companies. 

I hear companies talking about it Not every company. There’s companies that should be trading where they are. There’s going to be little bubbles. But when you’re looking at the main guys the main players listen to the conference calls, listen to what they’re saying Will spending slow one day? Yes, but we have great contacts in the industry. Taiwan Semi is a leader, Daniel, here that they produce all the chips I say all the chips, but most of the chips for the AI, for all the AI, of course, all AI and they produce them for NVIDIA, they produce them for AMD, they produce them for Broadcom and no one is showing signs of slowing down. You would see it in Taiwan Semi. You would see it in a lot of people that we talk to that help build these data centers for hyperscalers, and you’re not seeing the slowdown in spending. You’re not. So as long as you’re not seeing the slowdown in spending, you could say it’s a bubble. It’s a bubble as well For us. We’re looking for new ideas within the energy landscape. We talked about that. We have some great ideas. 

Our last pick in Curzio AI is up 50% in a month. We have two stocks that are up over 400%. The whole portfolio is up except for one stock. Being in the right areas, you can make an absolute killing. Why Real quick? Last point If you look at PricewaterhouseCoopers and I think they might be the most conservative on this AI, they say, is going to add $15.7 trillion. 

I have a chart of this. I’m going to show this, I’m going to bring this up if you’re watching on YouTube. $15.7 trillion to global GDP Okay, right here. $15.7 trillion by 2030. Okay. So as you as an investor and us as people that pick stocks, we want to find out who’s going to take advantage, who’s going to get a piece of that $15 trillion pie, and it’s going to be a lot through energy, a lot through infrastructure, maybe the chip makers they had their run already. 

But to call this a bubble, I don’t see it. I think you’re very early on and you have to make sure you understand this trend, not just looking at numbers, because when you’re seeing an industry, it impacts every single bite media across all advertisers. I mean now you’re getting things in social media, getting things on in best buy, improving customer experience. You’re getting things that you normally buy and they’re not wasting your time. Wherever you see ads on these sites are usually for stuff that you buy, that you use right, and people are going to pay an absolute fortune for that right. So target marketing, I mean, there’s just so many areas where this is working. I just don’t see the bubble, and I love to debate them on that. 

0:12:26 – Daniel Creech

Yeah, and to your point, I like how you’ve been saying for a long time it’s not going to show up as a line item on your income or balance sheet, and investors and us retail guys have to understand that. And to your point, look for efficiencies and such. I would like to. I think you I hope he comes back on because Cuppie’s a great guest Both can be true is where I’m coming from. I have no doubt he is correct. He is a crazy smart guy, Frank. You know, like you said, there’s companies trading evaluations that shouldn’t be trading there. There’s companies that are spending a lot of money right now that will not. They’ll just lose money. Whatever they’re saying AI is going to do, it’s going to flop. That’s not because they’re bad or lying. That’s because that’s the world we live in. 

However, I think it’s very incorrect to say AI in general is a bubble. You can point to small bubbles, as you said, Frank, but this is why and we’ve talked about this for a while whether you’re right or wrong, you’re not going to know this for a good amount of time, because these things need to be built out the data centers and such. But here’s another key point you have two of the biggest guys in the world right now. You have Zuckerberg, obviously, that runs meta big cat there, and then Altman, the guy that scares the crap out of me, that Bond villain. Look like Frank. Now, if you go back, you don’t have to go back to a couple of years ago or even 2024. Frank, remember Zuckerberg has talked about if we overspend by a couple hundred billion dollars not a big deal and what they’re essentially saying is the overspending risk. A bubble risk is higher than underspending because of the impact and how AI is, what you just said, going to impact every industry. 

0:13:52 – Frank Curzio

That’s coming straight from Zuckerberg. Yeah, he even said that. 

0:13:54 – Daniel Creech

And when you have and again, I say this tongue-in-cheek because I’m still learning and I don’t want to be condescending or act like I know it all, but when you have these two powerful men that are capable of raising, in Altman’s case, and spending, in Zuckerberg’s case, talking about openly saying, hey, you know, I know people are worried. I understand there’s a lot of money NVIDIA Jensen says trillions are going to be invested. That’s why, you know, cuppy said they were drunk on zeros. But the idea is, these guys are telling you this isn’t going to slow down anytime soon, and Frank is 100% right At going to slow down anytime soon. And Frank is 100% right At some point, somebody’s going to cut CapEx, somebody’s going to do something. 

And the point is, as a retail investor, as a investor in general, if you’re avoiding AI right now because it’s going to be a bubble and there’s going to be losers in this, I just think that’s a big mistake and you’re going to watch markets rally until that point. Frank, you’ve talked about it a lot. The NASDAQ you could talk bubble and then it didn’t double like the last year before it really crashed. 

And I’m not saying it’ll crash or double again. I’m just simply saying I think there’s a lot more upside from right now until we find out whether AI is the terminator or a flop. 

0:15:01 – Frank Curzio

Yeah, and Greenspan said rational exuberance. I think it was in 96, 97. Okay, we didn’t crash until 2000. So the markets went up tremendously since then, you know, before that crash, and it doubled from 1990 to 2000,. Just the NASDAQ again. So one thing I will say is Cuppie came on a while ago. I was talking oil. Oil’s pretty much out of favor, but this is when it was out of favor. 

This is probably If you’re going to call a bubble in the market. If you notice a lot of people who call bubbles are people who have not participated in that market. You ever notice that. So if you look at Peter Schiff with Bitcoin, you’re looking at a company with AI right, totally not. You know, has not invested in this trend. When you’re talking about someone that’s engulfed in this trend, that invested in this trend, that’s very fair. That has great contacts in this industry. 

Listen, if there’s a bubble, I see, cut in spending. There’s no pride. I’m not like, hey, you got to keep forward. No, I’ve learned my lesson. There’s no ego in investing. I mean, that’ll destroy you, that’ll destroy you and that’s the thing. 

When you have a thesis on something and the facts change, change, it stops for a piece of paper. They don’t care. They don’t care what you think. They don’t care about your feelings, right? So if your thesis really changed on something, it’s why I’ve been a rep for such a long time, even though I had a shitty performance for a while now it’s doubled off, it’s low, but the thesis has never changed. It’s just they had trouble with management, they had a lot of missteps, and now how their position is really, really good. I can’t wait to get Scott on stage in the one conference. But you know, we had Supermicro in the portfolio and we were up a little bit and we’re up a lot and it came down. I think we took a small gain on it, but the thesis has changed, right. So margins come down. They were competing against, you know, dell and they didn’t have the margins there, so they’re basically trying to beat on price and it was hurting. You know margins. I’m like that’s a problem, right, your thesis has changed. So they’re only seeing growth because they’re low in prices tremendously, which is not a great thing. 

But when I look at people who call bubbles, a lot of times people who call bubbles are people who’ve not been in that trend and have not made money in that trend, and that’s why I don’t really pay too much attention to them, even if they’re friends or whatever it’s like okay, if there’s someone that’s in this trend, if it’s like a Dan Ives, of course Elon Musk is in there and he’s going to say if they’re like, hey, there’s a big bubble going on within this, altman as well, I think, might have said you know some places, but overall the hyperscales are still spending. They’re spending like crazy. You see news almost every freaking day that comes out Definitely every week of these big data centers being built. You’re seeing the profits. You’re seeing the demand. You’re seeing the technology excel. It’s still there as agentic, egendic AI is going to be taking over for large language models and stuff, and that’s the next phase of this. Either way, if you think it’s a bubble or not, look at who’s going to benefit. You’re looking at transmission lines that are 25 years old, $2 trillion in spending to replace some of this stuff, and that’s from the utilities. 

If you’re looking at energy in general, yes, you have nuclear. Nuclear stocks are doing good. We had a mirror on but short term it’s going to be solar, holy cow, and that was a recommendation. My last recommendation is up 50% in solar and we just recommend another solar company. I’ve been really digging deep in solar. Solar is now economical. I hate alternative energy because I lost money on so many investments in this area. Solar is the future. It is unbelievable how cheap it is. 

Make sure they have battery storage. That’s AI right. That means they’re going to be focused on AI. That means they’re participating in that trend. Hyperscalers need this energy because that’s the easiest way and the quickest way, the most efficient way right now to get energy during the grid, to push some of that energy off so the grid doesn’t go down. That is what’s being used right now in solar. You’re seeing these companies go through the roof despite the tax credits being taken out, and there’s a lot of companies that are going to benefit Not all solar companies, but man, the demand. The technology is there right now for this form of energy to meet that demand for AI, and that’s one of the areas. So that’s where you want to look. How do I benefit? And some other areas are going to be in bubbles, but still I haven’t seen anything that would say hey, you know what? This AI trend is definitely over. No, we’re not even close. We’ve got more to go. 

0:18:49 – Daniel Creech

And, like you said, just pay attention to earnings and stuff and we’ll go over more of those as they unfold, but we’ll just follow that fact road. 

0:18:56 – Frank Curzio

And speaking of earnings, netflix is out and do you have a chart up there? Should I bring it up? You bring it up, please? I’ll bring it up, let’s see. So it’s down 7% last time I looked. Let’s see if we can bring this up. 

0:19:07 – Daniel Creech

The market’s just open, so we’ll see what happens. 

0:19:09 – Frank Curzio

So it’s down 8% right now. So we’re looking at it down 8% after reporting earnings here, and earnings came in much lighter than expected just earnings, not revenue. And it was interesting because Netflix almost never misses like this. And they said it was due to expense related to an ongoing dispute with Brazilian tax authorities and that was not in its forecast. Without this company says they would have exceeded guidance. Manager said it’s not expected matter to have a material impact on future results. Yet the stock is down 7% on this news. 

This is your opportunity to back up the truck on one of the greatest technology companies out there. Okay, this is a company that got a business that no one could get right. Right, and they excel at it, which is incredible. And you have Warner Brothers. Will talk about putting themselves up for sale 120 million plus subscribers. They try to get a massive price for that. I don’t know if they’re going to get it. I’ll tell you why. You have Disney, who’s shedding subscribers like crazy. I’ll get to that in a minute. But just Netflix understands this business. They’re great at it and they’re getting into one of the biggest growth drivers, which is advertising. And I’m telling you to back up the Trump because when I looked at the details. I’m not just saying, oh, back it up, because it’s Netflix. Listen to some of these positives Highest quarterly view share right Most views ever in the US and the UK. 

Net cash generated in Q3 was 2.8 billion versus 2.3 billion the prior year. Massive growth, free cash flow 2.7 billion from $8, $8.5 billion. Raise guidance for next quarter, which tells you that they don’t think that this is a long-term problem. They came out and said, hey, this is a one-time thing and we’re not going to get impacted on this again. So if that cures itself, you’re going to see earnings explode because analysts may be taking down their estimates. Right now and analysts overall were pretty okay, you know, okay with it and bullish on it. 

But again, it’s a stock that’s been a favorite, hasn’t been doing too much lately over the past few months. If you’re looking at ad revenue, they said it’s going to double in 2025. They’re just getting started, right. They’re just building out that team. Their content slate is insane in the next three to six months. I mean you’ve got Stranger Things coming out, which is going to be the biggest, probably most watched, most viewed show in the world in streaming the Witcher, the Diplomat. Those are seasons three, four, and you know they’re doing good. Right, you have Jake Paul’s going to fight Tank Davis. I don’t care if you like Jake Paul or not, he draws a massive crowd. 

0:21:24 – Daniel Creech

You draw fans. 

0:21:24 – Frank Curzio

You draw crowds. Wwe NFL on Christmas. Now you’re talking about a company that’s really well positioned, with a massive growth driver and advertising that’s going to double. I mean, they have everything there. Here’s your pullback. There it is. Here’s your chance to buy Netflix. I would be buying definitely big time, backing up the truck and buying Netflix on this pullback, because this is what happens with the market it overreacts. This is a temporary problem that’s not even going to be around for the next quarter and the overreaction is hey, let’s just sell out and get the hell out of the stock. And most of this is algorithms. So, just for me, I’m probably going to buy this. Personally, I don’t own it. I own Netflix for my mom. I’m going to be adding to her position. She’s owned it for a long time. But back of the truck on Netflix. It was a good quarter despite that and that problem is not going to exist next quarter. 

0:22:07 – Daniel Creech

Well said, I have nothing to add, other than the fact that, for as long as I can remember you’ve been saying it others you know Netflix isn’t competing with cable companies. That’s very apparent now. Everybody was competing with them. They are the clear leader. I just appreciate the fact that they came out like the headlines were oh, they missed the stocks down because of this Brazilian tax thing, and they were like, yeah, that’s not going to be material impact next and it’s like all right, well, so yeah, don’t give in to fear on this. This is an amazing company and follow Frank on that. 

0:22:34 – Frank Curzio

And a lot in the same sector. You have Warner Brothers coming out, Warner Brothers Discovery and look at the sell itself. And Warner Brothers and Discovery. They said they rejected a $24 share offer from Paramount. This was yesterday. Today Paramount is saying well, it was $24, $25. It’s a massive difference. 

0:22:50 – Daniel Creech

This is great for media because I was reading reports yesterday. The media reports on the per share price was low, but the highest offer was not $30. So it’s just hilarious. They’re crazy. 

0:23:02 – Frank Curzio

Look, they’re saying Netflix may come in, Comcast may come in, look to acquire. This is a stock that was trading at $11 in August. It’s now over $20, and they said they rejected a $24 offer from Paramount. That’s what was said yesterday. Today I’m reading more headlines saying oh, it was a $20 offer that was rejected. It’s trading over $20. I don’t think that offer was maybe $24, but I’m going to tell you this. 

I did a little digging here. Warner Brothers has 127 million streaming subs, which includes HBO, and they have great content. They really have great content. They do with HBO, I would say probably. Second, you have Paramount is really good in terms of content. Disney’s horrible with new content. They cut their new content budget tremendously. I’m not picking on them, they just have. They have a market cap of 50 billion right now and they’re generating 38 billion in revenue. If I just told you those two stats $50 billion company, $38 billion revenue you’d be like holy shit, man, this company is great. Not so fast, which, of course, I used to say. They’re sitting on $34 billion in debt. They only have $4 billion in cash. They’re losing money. 

Credit watch negative Net debt to EBITDA, something that you really not too many people are going to pay attention to, unless you’re an analyst. So, net debt to EBITDA, so you want to focus on the health of the business. If a ratio that’s a ratio if it’s below 2 is good. If it’s 2.5, you say, okay, it’s okay. The higher, the worse it is. If it’s 3, fine If you’re generating cash flow and stuff. It’s up there. 

Warner Brothers their net debt to EBITDA is their cashflow of 3 billion is barely enough to pay the interest on its debt. Okay, so they have massive properties, their assets are worth a fortune, but anyone taking over that company has to take over their debt, yeah. So why don’t you spin off your streaming assets, put the debt on the other side of whatever you want to put it on? You know the linear part and now you have a streaming company that can really get top dollar, but I don’t know who comes in and buys this thing other than you have Paramount, who’s backed by Ellison. Ellison, the real world Iron man, who, by the way, could write this check and not even feel it if he wanted to write a check for $75 billion and pay whatever it is for their freaking company $30, $35, because he’s worth. I didn’t know he was worth this much. Do you know how much he’s worth? 

0:25:10 – Daniel Creech

I don’t, but is he still ahead of Musk, or is it back and forth? 

0:25:13 – Frank Curzio

I don’t know if he’s ahead of him or not, but maybe not because Tesla’s really taken off and I think isn’t Elon Musk trying to get. I think he bought like a billion more shares. He’s trying to get more shares, but yeah, he bought a billion worth. He’s worth $350 billion, that it should be worth that much money. No, Like, what do you do? Like what do you have? Like nine yachts. I know he already has his own island and stuff, but holy shit. 

0:25:34 – Daniel Creech

What do you do? You do whatever the Florida you want. 

0:25:35 – Frank Curzio

I know Anytime. 

0:25:36 – Daniel Creech

Oh my God, holy cow, the cool thing about that is you would never be able to be late. Remember Iron man. 

0:25:41 – Frank Curzio

He’s like, hey, you’re late, he Oracle is well over 300 in initial open AI and earnings and stuff like that. It’s pulled back. It’s pulled back probably, I guess, around 10%, 12%. I don’t have the exact percentage. 

0:25:56 – Daniel Creech

It was up about sorry, just a little over 340. It’s pulled back, it’s 275 today it’s 275. 

0:26:01 – Frank Curzio

So I didn’t even know it was 340. That’s a big pullback. I mean you’re talking about billion, but again, $350 billion. But he can cut that check himself. But asking for $24 plus takeover offer is very super optimistic for Warner Brothers. I don’t see that happening. Unless Paramount can construct some kind of deal, I don’t see Comcast going in and buying it. There’s just too much debt on this company. They have to try to get the debt off its balance sheet somehow. But that’s a massive, massive amount of debt and it just shows you how streaming doesn’t work for a lot of companies and you talk about. 

This is a company that has 124 million-plus subscribers with really good, freaking content. But it’s really hard and that’s why all these guys are raising prices tremendously. Remember it was $5.99 a month $8.99. $5.99 a month $8.99. It’s like $20 a month for a lot of these services. Now Disney’s trying to sell ESPN and you go back to Disney. I was telling you about Disney and I don’t mean to pick on Disney. I hope Disney comes out of their funk. But your growth model is focusing on streaming, which you cannot compete. You don’t have your newest content going to your competing against the biggest companies in the world where this is their third or fourth most important business line, when it comes to Apple TV, when it comes to Google and YouTube TV, which is destroying Hulu. And then you look at Disney, where there was reports. Wall Street Journal reported that Disney’s cancellations for Disney Plus and Hulu doubled in September versus prior month. No kidding, I mean no fucking. Why is it such a surprise? That’s what happens when you have little to no new content. And what are you doing? You’re raising prices in their own commercials all over your service. What do you think is going to happen? I mean, I can’t tell you how many times I’ve come on this podcast over the past three months and told you I’m getting deals from Disney and adding that Hulu for like $2.99 a month, only for Hulu for six months, or $4.99 a month for Hulu and Disney+. Why are they bringing their prices so down? One is they don’t want to see that massive decline in subscribers because they know it’s going to hurt their stock. Two, they want to keep as many people on the platform. This way, they could sell more on the advertising side because they’re getting more traffic. 

It doesn’t work unless you have a platform that people want to go to and you have new content. That’s the key to making streaming work is new content. That’s why Warner Brothers is second. So you have to have new content coming out that doesn’t come out anyplace else that people are going to go to your platform. Oh my God, the new season of Stranger Things is coming out and I think Disney lost its way. But that’s their growth model. That’s not like, hey, that’s our business and our growth model is going to be parks and building more franchises and stuff. It’s streaming and it doesn’t work for Disney because they don’t have the new content and their best content in the world, which is amazing content. When you look at Marvel, you look at Pixar it’s amazing content, but it comes out in the movies first. You don’t need to buy the streaming platform unless you’re going to watch it again, because a lot of people want to watch that stuff under the movie screen because they’re fascinated with CGI and graphics. It’s just amazing. But you’re looking at the streaming. 

A lot of streaming news I wanted to cover, but I don’t think Warner Brothers is going to get that price. I’d buy Netflix on a pullback. They’re not dumb enough to buy Warner Brothers Netflix. They just don’t do it Because anyone the streaming platforms. They have to take over the whole business and Netflix is pure streaming. They want to buy all the other garbage that comes under their umbrella. And maybe that works for Comcast because you could filter things and cost better in Comcast. But you know, comcast is another one that you know just a lot of trouble late to the party, streaming it. Just you know it’s just a pure cable company. When I, when I look at Comcast, I can’t say that because they still own CNBC, don’t they? 

So I don’t know when the date is, but that’s not going to be the case going forward whenever all that happens. Yeah, but streaming itself is just not a good business, except for one company and you should own that company, and that company is Netflix. Let’s talk about Galaxy Digital. Strong numbers Stock was up big 8% yesterday. It’s giving back a little bit of those gains today. Half those games. The stock’s now in the 40s, Daniel question. Are the stock’s now in the 40s, Daniel? Question? Are you retiring from Curzio Research soon? 

0:29:52 – Daniel Creech

No, the position is nowhere that big but, like I said, I’ll hopefully have options, Frank, if this hits our price targets. 

0:29:58 – Frank Curzio

If you’re new to this podcast, Daniel’s owned this stock forever in the single digits, yes, and owned it higher and it came down to the single digits and came on and said, hey, were able to get their NASDAQ listing. Now you have more institutions coming in and you’re looking at a company. Still. Let me bring it up here. Why don’t I look at Galaxy? Because Galaxy is just. I mean, this thing has been absolutely on fire. 

0:30:25 – Daniel Creech

It has been, finally, and it will remain to be volatile, but yeah, I don’t know what it’s doing right now. 

0:30:30 – Frank Curzio

So it actually lost all of its gains down 9%. Is the market really coming down? I’m looking at all these things. Down 9%. 

0:30:35 – Daniel Creech

The market. I don’t know if the market is, but Bitcoin was down. You know, bitcoin was 112-ish thousand yesterday. It was 107 when I was looking at it this morning. So obviously a lot of volatility in Bitcoin when Mike Novogratz, CEO, was on CN Around $107,000. So yeah, it’s bouncing around. 

0:30:49 – Frank Curzio

So it pulled back, hit $45,000 yesterday, pulled back. Now it’s $39,000 that you can see here. But the thing about what I love about Galaxy is you’re looking at a small company with a $15 billion market cap Much smaller than a lot of competitors, yet they are totally engulfed in one of the biggest players within the crypto space and what they’re going to be able to do going forward is incredible. Because Goldman Sachs background when you have Noah Graz a lot of the institutions are flowing through Galaxy Digital to help out with their crypto needs and custody and things like that. They’re trying to take custody themselves. But again, they were just able to do that after Trump came into office. They were totally against it from the other administration telling them we’re going to audit your books if you go near crypto, and that’s why crypto absolutely crashed under Biden administration in one of his last years. Now it’s different and the growth listen. Bitcoin is going to pull back. There’s leverage in the market. It should come out. Altcoins are going to pull back. That’s fine. But if you look at just the tailwinds behind crypto the amount of money going into crypto institutions Morgan Stanley is saying you should at a 2% allocation You’re looking at billions, billions and billions. 

When I’m talking about central banks adopting Bitcoin, which could happen. Even the US could actually be purchasing that. They started their reserve, strategic reserve but that was just to take all the confiscated gold or the Bitcoin and put it in the strategic reserve. But they may change that. Senator Loomis wants them to be buying Bitcoin Again. There’s not a lot of supply of Bitcoin. There’s not them to be buying Bitcoin Again. There’s not a lot of supply of Bitcoin. Don’t, don’t get me a lot more printed. You got the halving as well every four years, which cuts supply growth down in half. There’s just a lot of tailwinds for Bitcoin to go a lot higher, but it’s up tremendously. 

Here’s a pullback. You guys should be used to it if you’re in crypto, because that’s what happens. That what happens. That’s what happened at 20,000. It went down to 8,000. It goes down to 16,000 from 30,000. We’ve seen it go from 80 to 50. This is what happens with Bitcoin. But at the end of the day, that trend people are going to be going in and buying it. I think it goes a lot higher from here in the long term. So again, another thing that I’d say back up the truck, but Galaxy great numbers and congrats, Daniel. 

0:32:53 – Daniel Creech

Yeah, no, this was a great quarter. It was the best quarter in their history. Now these numbers are going to be very lumpy because they have the Bitcoin, the trading book and all that kind of stuff, and then they have the power. So the reason that Frank and I are excited, and I’m very excited about it, is because they were at the crossroads of AI and crypto. So a couple of numbers here. I’m not going to bore you with them, but just remember these are going to be lumpy. So don’t think that when they report next quarter earnings that you’re going to see this type of growth. These are going to be lumpy, I will say. But, Frank, trading jumped 140%. Trading volumes jumped 140% year over year. Obviously, that’s amazing. They control or, excuse me, they executed Galaxy, one of the largest Bitcoin trades on behalf of a client during the quarter. Frank, take a guess on how many Bitcoin were sold. How many? 80,000. 80,000. Now they also talked about and I was going through some of the conference call transcript last night and Mike Novogratz. So you got your Bitcoin. That’s going to be volatile. They trade around that, they have assets staked, they have partnerships with managers that do ETFs, so just think they’re trying to build this massive pool where capital flows in, stays in crypto and it stays under their umbrella. That way they can continue to charge fees and stuff and that’s great for us as a business model and it’s good for the partners and customers because they’re giving them a platform and it’s a win-win situation. That’s what they’re attempting to build. It’s in the process of being an execution story and it’s going very well. 

There’s a lot of other numbers that I could bore you with, but let me say this Frank CoreWeave we’ve talked about a lot on this podcast. They have committed to the 800 megawatts that Galaxy has on the power side right now at their Helios data center development in Texas. What Mike Novogratz said, the CEO on the conference call last night, was listen, galaxy is supposed to start generating cash flow from this deal in the first half of next year. If that happens, I think that’s going to be obviously a major milestone and I think that could give a lot of legs to the stock. Galaxy’s management, said everything is going on time and on budget. So again, execution story. We’ll see Now. Once that happens, Frank, and they’re also hopefully by the end of the year, I want Galaxy to put out a press release. I want to hear them get more power approval from Texas. They hem-hauled around it. 

Analysts were good about asking questions on it you can’t say what you can’t say but hopefully more of that will come and add to the pipeline. Frank, Mr Novogratz said we’re going to start cash flowing from our Helios first half of next year. He said from 18 months from now. When we’re up and running. I think this will be a little less than that, but when we’re up and running. He said our data center is going to produce hundreds of millions of dollars per quarter. A quarter Now. Let’s just take 200 million, because he said hundreds, so it’s got to be at least two. That’s $800 million a year coming like mailbox money. All right, now there’s costs in there, but the market is going to look at that just like they look at every other sticky revenue business. And when you’re in the data center business, you’re not just going to unplug and go plug in somewhere else. That is absolutely massive. 

Last thing here on the fee side, Frank, they had $4 billion during the quarter flow into their fees and the reason I really like these guys is because it’s like a Swiss army. But check this out Every time, and Frank and I talk about this a lot, and they’re fun trading vehicles. Some are worthless, in my opinion. Some are going to be great, Frank, we’ve talked about these companies that are doing treasuries, or Bitcoin treasuries or crypto treasuries in general. How Galaxy is helping that is because, just like anything else, they help other companies manage that. So I don’t care if you’re using a treasury asset for Solana, bitcoin, ethereum, galaxy Digital can take them on as a client and help manage that position, situation, yield and make sure they’re getting all they can out of that, and that’s very good. 

Now those fees aren’t going to add up. Those fees aren’t going to be astronomical or anything impressive in the short term, but just like anything else, Frank, as you grow that pile, you know, and the fees are going to fluctuate with the assets. But, Frank, if you’re charging 1%, just using example, and you got a billion dollars and that goes to 10 billion, well, I’m still only charging 1%, well, yeah, but you’d rather have 1% at 10 billion than 1 billion. You know what I’m saying. So that’s what they’re putting together. Again, this is an execution story. I’m going to continue buying this because, as Frank tells you, I’m crazy and this is the only one I have right now. 

0:36:53 – Frank Curzio

Let’s get some fun stocks here. 

0:36:54 – Daniel Creech

So Six Flags went high after China Conners. 

0:36:57 – Frank Curzio

And Travis Kelsey took a 9% stake. Kelsey said he invested $20 million personally and the goal is believe it or not, listen to how crazy this goal is, quoting enhance shareholder value and improve guest experience. Original. What’s the goal? To make the stock go higher and make sure that people like the parks Good goal, that’s a great goal. That’s a great goal for every company. 

Anyway, the bigger part of this deal why this is a big deal for me? I don’t know how you feel about it, but Kelsey’s in a prime spot because of Taylor Swift and if you’re an advertiser, you better do everything you can to sign that freaking guy, because all she has to do is send that one tweet. And I’m telling you she has over 550 million total followers on the social media platform. That’s amazing. And if she sends out a tweet about Six Flags, by the way, six Flags is very, very big. They have 42 parks across America, Canada. 

They’ve been adding parks you know great parks have been a lot of them and again and again America, Canada, right and you’re looking at the demographic of her those 550 million followers are that perfect candidate that’s going to go to these parks, right? So you know Kelsey’s in a prime spot if she’s tweeting on it and the advertisers know that and he can make an absolute fortune. But you know that’s smart. I think it’s a good deal. I think everyone should hire Travis Kelsey because you probably get it at a 95% discount than getting Taylor Swift. But you have Taylor. 

Swift on the side. Right, it is what it is. He makes his own money and he’s rich, but he’s not stupid rich like she is right, she has three planes and he has none, right. So it’s a good move for six flags. It really is. And you know, now you’re in the NFL involved as well, where a lot of hedge funds that I talked to and a lot of big guys that I talk to have partnered with a lot of these sports people and even one of my friends with Aaron Rodgers. But you want that because it brings that element of storytelling. It brings that element of excitement Sometimes. Sometimes it does because it can also blow up in your face. I don’t know if you had comments on that with Six Flags, but I’m throwing beyond meat in there. 

0:38:50 – Daniel Creech

Real quick on Six Flags. Yeah, comments on that with Six Flags, but I’m throwing Beyond Meat in there. Real quick on Six Flags. If Taylor Swift plays a concert at Six Flags, I’ll have to buy you a beer for me, because I think that’s hilarious. That’s the easiest marketing thing in the world. Come out and see what’s his name Kelsey and Taylor Swift. 

Anyway, what I really think is valuable here is that do not knock this off. I mean, we’re having fun with this. But what I like about this is that anybody can be an investor. Do not say oh well, you’re a movie star or a businessman, or you’re a NFL player, or you’re a chef. What the hell do you know about stocks? The good thing is, everybody can know about stocks. It’s the economy. As Frank says, use your eyes and ears, talk to people. No-transcript, like he doesn’t know anything he’s talking about just because he’s an NFL player, because markets are great. And to your point, Frank, yes, I look at this and I say Kelsey is extremely rich. However, that is not wealthy like Swift. So I totally agree with you on that. No, definitely, let’s talk Beyond Meat if you want. 

0:39:55 – Frank Curzio

So Beyond Meat. Beyond Meat went up 150% yesterday was it, and now it’s up another 66%. So this is a stock. Basically, if you look at just a couple of days ago, you look at a stock that was at $0.60. And this is on the 17th, so this is early in the week at $0.60. It’s at $6. It’s at $6 right now and I find this hilarious because of the reasons why it’s higher Now. First of all, we talk about you know, you have the right celebrities and stuff Beyond Meat when it came out. I remember the IPO Leonardo DiCaprio, Jessica Chastain, Snoop Dogg, Chris Paul, Kyrie Irving, deandre Hopkins, Lindsey Vonn, Kim. 

0:40:34 – Daniel Creech

Kardashian, Bill Gates. 

0:40:35 – Frank Curzio

Bill Gates. Right, they were all like this is the greatest thing. This plant-based meat Well, you know, know, here’s a company that got annihilated because people realize that they actually want burgers and juicy steaks and stuff like that. And you know, I don’t know who the hell eats plant-based meat and I’m not picking on you if you do, but it kind of defeats the whole purpose. Like I mean, you want to eat a juicy steak, steak that that’s medium at least. Don’t get it well done at all, or even you know medium well, and you want that juice squirting out when you bite it. You know what you’re getting. You got to exercise afterwards. It’s a good source of protein, but it’s red meat. You know what you’re eating. It’s like a cheesecake. You know what you’re eating. You want a cheesecake. You don’t want a fake cheesecake, you want a cheesecake. 

Okay, it’s like hey, ever going to happen. And it’s not their market, it’s not the market, right? So you watch this stock absolutely crash. And then it went up because they announced a deal with Walmart to expand distribution, which is going to include their product in more stores. Okay, pretty good. But more importantly, roundhill Investments, who has the meme stock ETF, added it to their ETF and this created this massive short squeeze where you saw the stock go up tremendously. There’s nothing different about the stock. A couple more maybe sales go up a little bit because they’re going to be in a few more Walmarts, but over 60% of the float was short. And you know what. I’m going to be honest with you if you’re shorting a stock that aggressively, that trades for under a dollar, you deserve exactly what you get. Okay, you deserve it. You deserve to get annihilated because that’s like a gigantic fist going right up your new I won’t even say it, I mean you got. You got to be careful, especially I. 

0:42:22 – Daniel Creech

I mean it’s not oil, Frank, it’s not going to negative. 

0:42:24 – Frank Curzio

You’re looking at a celebrity stock, meme-based kind of that. Even the Reddit crowd and the Wall Street Bets crowd are going to look at this and say look at, that’s what they look for, that’s what they target. Right, they target this this way. They short. So that’s what happened with GameStop. It’s not an get funded right by was it Ken Griffin? They had to get funded by whoever it was. 

0:42:48 – Daniel Creech

I think it was Cohen, and I think Steve Cohen was the initial guy because he was a prodigy of-. 

0:42:53 – Frank Curzio

Yeah, which they went under. And that was what? $10, $12 billion firm. And this is what happens when you have this, because when you’re short of stock you have to buy it back eventually. Think about if you put $1,000 in Beyond Meat at whatever price $10, $12, $15, the most you could lose is that amount. If you’re short, you have a limited amount of money. You can go to $100, go to $1,000. And now you’re talking about a stock that was $0.60, that’s now over $6 in four days, three days. So if you’re really short that stock at $0.60, $0.70 and thinking it’s going to go under at $0.60, you get what you deserve. 

Now this massive short covering that even continued into today. It’s probably going to continue. It’s probably going to stay up for a little while before it comes down, but there’s nothing fundamentally that’s changed here. You’re meeting a couple more stores which already had that contract in Walmart. It’s just a mean play. Maybe it goes higher. Maybe you want to take a chance on it. That’s perfectly fine. That’s up to you. 

I wouldn’t tell you. I would have called you an idiot four days ago. And you’re up 10X. It’s good for you. That’s what you want to do. You want to make money. We try to help people make money. I wouldn’t be buying it. 

But be careful and look at those short ratios because A lot of times in a bull market, which we’re in, the last thing you want to do is short a crappy stock in a bull market because those are the ones that are going to go up the most. Those are the ones that easily you could have campaigns going out that could push it a lot higher. They have celebrities backing it. Now they’re in the meme ETF. I’m not telling you this like I’m some kind of just doesn’t make sense. This doesn’t matter. This isn’t about fundamentals. This is about a whole bunch of people being on the wrong side and forcing. You’re forcing all those people that hate the stock to buy the stock back now at 3, 4, 5, and 6. And now they got annihilated and hopefully you’re in it and you’re making a lot of money. But the people who are short that stock under a dollar. You’re absolutely insane. You deserve what we can get. 

0:44:40 – Daniel Creech

It’s all you do it is wild, because your point it can only go to zero. I mean, if you short it at 60 cents and I’m not saying they short at 60 cents, but anyway it can only go to zero. What I just said about Kelsey and don’t ignore people just because they’re not in the field is the other side can be true, just like we talked about earlier with the AI bubble. Both things can be true. Frank, this upsets me because you should not just blindly follow people because you like them into something that is out of their ordinary, ie Michael Jordan, greatest basketball player of all time. You don’t want to make that argument for baseball. You don’t want to say, oh well, he’s going to skip me, he’s going to be an awesome hitter in baseball. That’s apples and oranges. Leonardo DiCaprio said. Frank, this is a critical step for climate change. If that didn’t tell you enough about this stock, you really deserve to lose money. Bill Gates said he’s praising it To your point, Frank, nobody wants to give it Taste. And environmental impact. You had to get mine. Quote breakthrough for food systems, food systems. If that doesn’t put up a red flag again, I just agree to disagree. Kim Kardashian said we don’t need to worry about what Kim Kardashian said. 

Anyway, Frank, what I like about this is that this proves how silly markets can be at times. They are the greatest wealth generation. That is capitalism, and the markets are a way to participate in that. But that doesn’t mean every stock is good. This is a BS stock. 

This was taken public to, as Frank says, screw over the retailer guys, investors, leo DiCaprio and Bill Gates, I’m sure, made a lot of money. I don’t want to blame them or point fingers at them. I’m simply just saying this kind of stuff is why people have ammo to say the market is fixed or silly or a waste of time. That doesn’t mean they’re correct. You have pockets of that everywhere. But I’m simply saying use this, trade it or whatever, but do not follow. If you like their movies or whatever, just don’t blindly follow them, because everybody has an agenda, including this guy talking to you. But the point here is do not just be a retail bag holder. Do not be the joke Like. Use your own brain, think through this kind of stuff, look at what their incentives are, and it’s to make Florida money, just like yours. 

0:46:34 – Frank Curzio

Yeah, and look, I’m not picking on people who like this stuff, I’m just saying there’s a really small, limited market for it. Okay, and when you’re looking at a company like this, you want it to be in a massive growth market. You want to be able to participate in the $15.7 trillion I mentioned earlier in AI. You want to be part of that pie. You’re part of a pie that you’re hoping more and more vegetarians start to eat this stuff. It’s not a big pie. There’s some out there, but you’re not talking about all the freaking. You go to Texas. You go to Kansas Missouri wherever Holy cow to Texas. You go to Kansas Missouri wherever you know holy cow. You know it’s just, it’s a limited market and you’re bringing out a stock that was really pumped in a limited market with limited growth opportunities and you want to unleash growth. You want to have unlimited growth potential. Right, that’s your goal to have a buy stock that has unlimited growth potential. 

A Palantir, you know the Microsofts, the hyperscalers, a lot of these companies within technology. I mean you have this massive growth model of AI continues to take off. This is a limited market. It should have never went public. It did. People made money off it, even though the stock didn’t do well, because they’re in at prices that you can never get in right in the private markets and in these series, a, b, c rounds, which they don’t tell you. But you know, it should raise a few red flags. But just remember, when you’re in a bull market, there’s a good shot Stocks like that are going to go, continue to go, higher and higher and higher. Because we’re in a bull market, everything goes higher. Usually in a super bull market, the shittiest stocks are going to go up the highest right. And just be careful. 

0:47:54 – Daniel Creech

And hopefully you made it Frank. It surged over 800% from its IPO price to its high. So hopefully, hopefully you got out. 

0:48:00 – Frank Curzio

if you did, and we’re aware that you weren’t changing the world and climate- yeah, so I’m interested in that, to see that data too, because I don’t even know. I remember when it came out, just because the IPO price isn’t the price that actually opened that Right. 

0:48:12 – Daniel Creech

Oh, that’s true, I’m sorry, you’re right. You’re right. You can say the IPO price is 10. 

0:48:17 – Frank Curzio

It opens at 37. 

0:48:18 – Daniel Creech

That’s According to this. It went to 239.71 at its high. Did it really? Yeah, if you have a long-term chart, it’s massive. Yeah, and eventually all those guys could sell. 

0:48:25 – Frank Curzio

So let’s get into a couple more stocks here. And DGXX, which is Digipower X, went up tremendously and it pulled back from its highs and it should a little bit. But it has to re-rate here because now this is a company that we talked about that has tier one assets Bitcoin miner. We’ve been talking about the stock since $1, $1.50. And now it’s at $3.50. And the stock went to like $4.50 something because it turns out that Citadel and Ken Griffin personally took a stake and had a file. Why they had to file? Because it took more than a 5% stake. Now we could see when DGXX took a $15 million check. We had the CEO. I interviewed him on the podcast. He said look, we don’t want to dilute the stock and a couple of weeks later he did a $15 million deal. 

0:49:09 – Daniel Creech

And everyone was like what the hell he? 

0:49:11 – Frank Curzio

diluted the stock. He said he was going to dilute the stock and I said whoa, whoa, whoa, whoa, whoa this is probably from and says I’m going to give you a check for like $25 million to help grow your business. I’m taking it. Everyone in the world should take it. Citadel is one of the greatest hedge fund managers in the world, taking a personal stake in this company. And not only that one of the things I pride ourselves on, Daniel, which, again, we always say when we’re wrong, we come in here. We learn from the mistakes. That’s how you get to be a better investor. No one’s going to be perfect. 

We got into this company. We did the research. I met with the CEO at his house in Miami, I studied the assets and going from tier one to tier three which tier one is Bitcoin mining for power. They own over a hundred megawatts of power and they own the power. They own the power plants through New York and Alabama and they could scale us up to 200 megawatts. Everyone, all the hyperscalers are dying for power. Right now, these guys are sitting on power. That’s what the core scientific deal was with CoreWeave. 

Right, they’re buying a Bitcoin miner and the power and they’re fighting back and forth about the price of that deal, trying to, yeah, but this is a company that’s over a year ago and that now you’re seeing this where they’re going in tier one. Tier three is data center, hyperscalers and those assets. When you convert them to tier three, which is a process and it takes probably nine months to do, those assets are worth 10 to 15X more. So you’re looking at a company that’s, you know, a hundred million dollar market cap. That could easily be a billion dollar market cap, and we recommended this thing really early. And what I brought ourselves on is we recommended it and Peter Lynch came in and took part of their offering when they offered a 260, I think, and now Ken Griffin’s in, and Ken Griffin did that deal without any warrants, by the way, which is really cool. So those guys are not buying this stock and they’re probably in. Peter Lynch is probably in the 260 level. I would say that Ken Griffin’s probably in the $3 level. These guys are not buying this stock to go to $4. They’re in this stock to go to $10, go to $20. That’s the potential this company has. That’s what I love about this. 

We got people in early. I went to $4.50, $4.75, and now it’s $3.50. People are like, well, it’s selling off because I was in an offering, I invested $100,000 in it and I got warrants this is exercise, don’t quote me on this like $325. So when you get the warrants for free, now the stock goes to foreign change, a lot of those people are going to exercise those warrants and take that money off the table, which makes sense, right? I didn’t. I didn’t sell my warrants, I didn’t sell anything. I didn’t sell a share from that offering and I’m still in it because I think it’s going to go a lot higher Because maybe this stock goes to two and in five years or whatever. Then you know, again they expire worthless. You’re able to get free money off the table and a lot of people getting those free money exercising and probably selling the stock. We’ll see that next quarter. I think We’ll see it, because that money once it comes into the company right, because you’re paying the company to issue those shares. That’s what warrants are about. It’s kind of like options. So you’re probably seeing it come down a little bit with that selling. But this puts a floor under this stock at around $3,350. 

And now you’re going to see if these guys execute which they have been executing the Alabama plant they closed just because they’re focusing totally on tier three. This was a big deal. I love to see people win. Not only that, we got into a stock before Peter Lynch got into it I recognize it before Ken Griffin got into it. And now you’re sitting here and these guys you’re going to see probably Peter Lynch file as well, because he’s probably going to take more than a 5% stake and answer his position, because that’s where this company is Could scale up to 200 megawatts of power. 

They have the licenses which are almost impossible to get for these power plants. They have all this stuff. They got lucky that they bought this stuff. They have it for tier one. They this stuff, they have it for tier one. They also have tier three hyperscale clients. So sky’s the limit for this company If they execute. 

I talk to management. I do think they’re going to execute. Things are really good with them and, seeing a lot of demand, potential deals may be coming up. I think that would be the next step after getting to tier three. How do they announce these deals? And they probably won’t announce a specific hyperscaler, but believe me, they’re dying for power right now and these guys are sitting on a massive amount of real power and it puts them in basically the biggest growth trend we’ve seen in 30 years. And it’s a tiny AI company that few people know about and now they’re starting to know about it. I’m happy people are doing well. It’s down from 450, 475, but we would recommend this thing at a dollar. It’s going to base itself here and I think there’s a lot upside left. If it comes down to the $3 level. Below that, I’m going to be buying a lot more here. So, but I’m really happy that shareholders are making money and you guys are making money off it. You deserve it. 

0:53:29 – Daniel Creech

Yeah, absolutely, and you know, trying to help provide value on what I’ve learned. You know this is similar to other situations we’ve talked about. You know this is exciting. You see a big name coming in it pops. Now it’s pulling back. That’s emotional and such. 

Just do not make the mistake to think that you’ve missed this, and I know that might sound plain, but I know some of you are out there going, oh I missed this big pop, Frank, and oh, I missed this. And now you’re nervous because it’s pulling back. If you want exposure to the AI power trend, if you believe in that, like Frank and I does and Frank hit this out of the park recommend it $1.65 for our subscribers. But my point is, if you’re not in this at all, pull up a chart, do whatever you do, but gain some exposure to this. You have not missed this. This is an execution story and you don’t want to look at the markets as, oh, I did this and I’m not saying this is the next Amazon. I’m simply saying do not use that excuse. How many people do you know, Frank, that have been saying, oh, I missed Amazon? Well, you missed Amazon. You didn’t miss Amazon because you didn’t buy it in 20, whatever. 

0:54:22 – Frank Curzio

And a good example we do good on newsletter Curzio AI really quick is we recommended Bloom Energy and we recommended Bloom Energy in November and we recommended it where it was in December, but in a month earlier it was at 13. We recommended it at 23. It went up 100%. I said don’t pay attention to that, it’s meaningless. And the stock over the next few months came down and we took a half position. Then we added to that half position at a lower price, around whatever $15, $16. And, you know, lowered our cost basis to whatever $20. Right, we said don’t worry about it because people look at that and say I missed it. Well, our cost basis is around $20 and it’s $100. Yeah, right, so we’re up tremendously on this. And we just told we said said sell half at over 400% gain. 

0:55:02 – Daniel Creech

Well, markets are fickle. When you say that it goes down, so it’s technically 385. 

0:55:06 – Frank Curzio

Yeah, whatever, but when you’re looking at stocks like this, you want to. Even the solar stock we recommended was up 100% over the past few months and it’s trading at 20 times forward earnings, generating massive cash flow. They have a backlog that’s 30% bigger than their revenue that they generated in the last year. They’re generating $3 billion in revenue and now, with recent acquisitions four of them they made in 2025. This is the latest solar company we recommended. Now they increased their total addressable market by 3x to $75 billion and they’re one of the leaders in this particular area within solar, with a $13 billion market cap, and this is a company that could easily have a $50 billion market cap. So when you look at it that way you look at the market cap it’s a lot easier to buy it than looking at a chart because you’re like shit, I missed it. Don’t feel like you missed it because almost every stock right now you feel like you missed it. It’s incredibly higher, as long as those earnings continue to grow, as long as you have that growth behind it and as long as management executes, which you’re going to see quarter after quarter, which you’re going to see during earnings season, which is really exciting. One last thing I wanted to talk about here is Apple really quick, driving the markets higher, over 260, all-time high, pushing the $4 trillion mark cap level, which is going to join Microsoft and NVIDIA, everyone raising their targets. It looks like demand for the 17s off the charts, trending much higher than the 16 in the US and China. And Dan Ives came out with an interesting stat. Who I like Dan I think he’s a great analyst Webb Bush. He said of the 1.5 billion global iPhones users, 315 million figure that out. It’s 20% have not upgraded their iPhone in the last four years. So when I went back and did research on this and said what’s the refreshment rate? How many times a year? No, it’s like 10% to 14% of iPhone users typically upgrade their iPhone every year. Doesn’t sound like much? Oh, it’s going to be 20% this time, or 17%, or maybe 15% compared to 10%. 5% amounts to 75 million more iPhones. That’s an extra $75 billion in revenue at $1,000 per iPhone. I don’t know what Apple makes per iPhone, I’m just putting the number out. Maybe they make a little bit less than that, I don’t know. But you’re looking at 20% extra revenue growth. That was not in place and that is insane for a company Apple’s size, and you’re not even talking about double G percent growth in services. Super high margin business Macs are starting to sell again. I mean what? Really, like you know, everything is going well for Apple. Remember, they control that ecosystem where nothing works for technology unless you have an iPhone to watch it on and to see stuff on. So you saw what happened when Apple pulled a rug out from Meta about the privacy issues and that stock fell 33% because of that, and then they had to change their policies, right, because if you’re going to go to an iPhone, you have to change your policies. 

I have the 17. I just got the 17 and my family upgraded to 17. So I just got it. I did it first and they were supposed to get their phones two weeks ago and they delayed the shipments because of the high demand. So you’re seeing it, we’re seeing it, and the 17 is a really good phone. I love it. I mean, the camera is unbelievable. I had, like I had, the 14. The phone was still bad the 14, and didn’t want to upgrade. 

Don’t brag about it, Frank. Yeah, I think you had like the 4, right, I think it was the 5. But I won’t go into detail. 

But I mean it’s really a good phone. It really is a good phone. But you know Apple is just. You know it’s rewriting. Right now You’re seeing high demand. There’s lots of places where they have channel checks, where people do this a lot in the industry. They’re able to see and some guys are graded. If you really follow them with Apple old phone and they’ll replace it for you. They’re going to charge you an activation fee of $35 or whatever, but it’s working. A lot of people return the phones and they like the 17 because they feel like, okay, now we’re really going to get Apple intelligence and there is it’s chat GPT on it a little bit better and stuff it’s going to get better. No-transcript. 

0:59:09 – Daniel Creech

The only thing I have to say about Apple is I’m upset that I didn’t throw it in the Dollar Stock Club portfolio or CRA. Frank and I have talked about this. We have a good record with Apple. This is the easiest trade you need. When the markets start pricing in or the headlines start saying Apple’s lost this way and they’re, you know, going to blah, blah, blah, blah, blah, whatever Frank just talked about the ecosystem, it’s just an amazing business. It’s going to go up, it’s going to go down, but on pullbacks that’s a buy unless the thesis changes. That thesis has not changed. So it’s my fault because that was the easy. That was one of those trades where we’d put it out. 

0:59:38 – Frank Curzio

Nobody would have did it. We don’t have it on record, but we’ve been talking about like Apple’s a great buy here. Like Apple’s a really good buy. I mean not just the buybacks and the balance sheet it hasn’t participated as much as the Microsofts and the NVIDIAs, but just they have pricing power and they have the biggest ecosystem in the world, which you can’t really get out of right. I mean, you’re not going to transfer that to a Samsung phone. 

It’s difficult it’s not impossible, but it’s difficult just to get everything off your cloud. Once you’re in your cloud and you’re in that, that’s it. You’ve got these high margins. You’ve got to use more pictures. You’ve got to continue to pay up for it to keep all that stuff. It’s this never-ending growth trend that these companies are seeing. It’s no surprise that every company that is into cloud and cloud storage are the biggest companies on the planet, because everyone’s going to need more data. They’re going to need more data stored. That’s what spurred AI right, because now you have all this massive data that could be stored for the first time or it doesn’t have to be stored in your computer. Learn this in 2010, 11, 12, 13, 14,. 

As cloud took off, people used to look up and be like what does that mean? It’s unlimited storage. Now you have this data is actually incredibly valuable. These names on our list are incredibly valuable. They used to go for $10, $15. They’re going for $150 a name now. 

Because now, once you get that name and I can tell you one thing, Apple does really quick this new phone every time I go to a website, it says this website’s tracking you. Do you want them to stop tracking you? So every single website that you go to, every single one, tracks you, steals your information, sells it to third parties and that’s how Google lets. It’s incredibly valued to know everything about you. I mean the location services, the maps, everything. When you have that iPhone and you’re on it all day, they’re tracking you. And once you get this phone, you don’t realize. Every single website I go to, every single one, they’re tracking you. They track you. Do you want to stop? Yes, hit, stop. It comes up with a button that never happened before. I didn’t have. I don’t know if that was from 16 to 15 and out of the 14, but yeah, I think that was a really cool feature. But Apple’s leading this market right now. 

1:01:31 – Daniel Creech

It’s doing very what do you think when you hit stop, it probably stops for like two seconds and then start tracking you again, probably yeah, I know, I know, I just they find it anyway. 

1:01:38 – Frank Curzio

Microsoft’s the best. When I shut everything off on my computer and they try to update, update. They try all the time and all of a sudden I come in and everything’s updated. So they obviously did something illegal to break through my firewalls. Everything I shut off and now I’ll come in and everything’s updated and now a lot of my sites don’t work and I get so pissed off I’m like this is totally illegal. They’re going to get fined a billion dollars. They don’t even care and they allow it. They allow this shit, they allow the tracking. They allowed all this stuff, which you know. If you turn stuff off where I don’t want to be tracked, I don’t want you to upgrade my systems constantly and you’re breaking through those firewalls to do it. It’s you know. I don’t know it is what it is, but I don’t know here. So, guys, that’s it for us. 

A little bit over an hour today, because a lot of stocks to talk about. You can see, Daniel and I are always excited during the earnings season, lots of earnings coming out. Not really doing too much right now on a portfolio front, just holding back seeing what these companies report, but really exciting times. Portfolios are doing really well across the board. Questions or comments, feel free to email me at Frank@curzioresearch.com. Daniel, Daniel @curzioresearch.com. All right, I’m going to be out tomorrow busy working on my conference stuff, but Daniel’s going to take the helm. I don’t know if I have a pick for you tomorrow or not, we’ll see, but he’ll be managing Wall Street Unplugged premium tomorrow and we’ll see you then. Take care.

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