Transcript was automatically generated.

0:00:02 – 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

What’s going on out there? It’s June 11th. I’m Frank Curzio. This is the Wall Street Unplugged podcast. We bring you the headlines and tell you what’s really moving these markets. Daniel Creech, what is going on? Hello?

0:00:30 – Daniel Creech

Frank, happy Wednesday, sir.

0:00:32 – Frank Curzio

.oh happyWednesday Best day of the week, your favorite day of the week, I know, I know, right, pretty crazy. At least our podcast is out right on Wednesday. But we did come out with an interview and put it out on Tuesday. Yeah, a little curveball for all you Wednesday, but we did come out with an interview and put it out on Tuesday, yeah, which is really cool. Yeah, it’s a podcast, uh that interviewed, uh, the CEO of a company called savvy, which is going to be a competitive airbnb. It’s fantastic as an entrepreneur, learn a lot from that, uh. But yeah, we’re going to start doing more interviews, as we said. Lots more, lots of people requesting, getting a lot of requests, people saying, hey, you gotta be a great guest, or other people suggesting guests, which is is really cool. But other than that, I don’t know if anything else is new. I mean, we have the CPI and lots of markets.

Before we get to that, I got to tell you a story. So I’m watching a dog for a couple of weeks for a neighbor and it happens to be a chihuahua. Do you know anything about chihuahuas? Negative, yeah, I don’t know why God created that dog. Like seriously, if you’re going to have a dog, like I don’t know why anyone would own that dog. I mean it’s a little dog. I feel bad because it’s deaf, so it’s not trained, but it goes to the bathroom every place. I think they live longer than all the other dogs and everything. But you know, barks extremely loud and I’m just looking at him like man.

If you’re going to buy a dog and buy any dog, why would you buy that one? And I know I’m probably going to lose everyone who has Chihuahua now. But I was just like man because I love animals. I have lots of dogs. One of my dogs passed away. I have two dogs, I have a cat, I have a snake, I have a rabbit. I used to have everything steak by watching it for three weeks. I mean, it’s four years old. It’s not even potty trained. It just goes to bed, to wherever it wants. So I’m like, are you kidding me? Like really, but I don’t know, maybe it’s me, maybe it’s Shua. I don’t know too much about them, I just know it’s a tiny little dog. I’m just. If you want to get a cat the same size. I just don’t get the whole. I don’t for this dog. But I try to do everything possible and it seems like he does whatever he wants, kind of like a cat, which is a little weird.

0:02:26 – Daniel Creech

Little dogs live a lot longer than big dogs, right?

0:02:28 – Frank Curzio

Yeah, how long have you housed this thing? For Three weeks. I know I’m going to bring it here for you, this way you can take care of it. My kids love it, though. My kids are like this is a great dog. I’m like, okay, it’s really this little cute dog. Until you live with it for a little while you’re like holy cow and listen, I love all animals, seriously. I love all of us.

But this animal not saying I don’t love it, but I just don’t I just don’t know, out of all the dogs you could possibly buy, it’s like, uh, it’s like buying a penny stock where you have money to buy any stock you want, kind of like a garbage penny stock that doesn’t even report. That’s what it’s like, but anyway, hopefully the experience goes a little bit better. Just wanted to share that with anyone. Anyone has any advice? Frankcursoryresearchcom, about the dog. If you own that dog, it’s fine. You probably know exactly what I’m talking about and you’re laughing right now because you know it’s true. But man, what an experience and what did I get myself into? Anyway, yeah, three weeks Wow.

0:03:15 – Daniel Creech

What’s new on your front? Well, we have a to talk sports for a minute. If nobody’s watching the NHL playoffs, they ought to be, because they have been amazing. Game three wasn’t as good of hockey as the first two games were, but it was for all you guys that like to watch a brawl, because all five guys on the ice at the end of the game were fighting. That was fantastic. So, yeah, hopefully you guys are enjoying that and the US Open starts tomorrow. Frank, that’s right, and you got basketball today.

0:03:40 – Frank Curzio

Day game, big game three happy early Father’s Day, yes, but uh, yeah, listen, I think Florida’s a much better team than Edmonton. I’m kind of hoping Edmonton wins a little bit, but you know I am. But yeah, Florida’s just really, really good and this game Is, uh, the most important game for them Coming up. Game four because if Edmonton loses, they’re done and they know that, so they gotta win this game. Anyway, let’s get to some Market stuff and have some fun, which is the cpi.

The cpi came out and remember all the economists, Daniel tariffs. It’s gonna impact us in april. It’s gonna impact us in may. It’s gonna impact you’re gonna see the effects of it in june. All the inflation gonna go through. All these economists warned us. This is the third month in a row that inflation is gonna creep into these numbers and inflation continues to go lower and lower. Shelter the biggest component, so a small increase since 2021. It came in much lower than expected. Inflation is actually crashing. That is a fact. If you look on any chart and watch over the past six months, seven months, inflation is absolutely crashing. And it’s funny when I bring up economists, because economists also said that we, you know, we’re going to see six rate cuts. All these rate cuts are coming right. This is about nine months ago.

0:04:48 – Daniel Creech

They’re coming.

0:04:49 – Frank Curzio

They’re all going to come. All these rate cuts. Then it was five, then it was three this year and we still have none with. I think there’s four meetings left. I’m not including the meeting I believe it’s a week from now. So four meetings left before year, unless we get a 50 basis point cut.

And I’m not ragging on them because most economists I don’t pay attention to. 99% I don’t pay attention to when it comes to forecasts, especially when they try to talk about the stock market. You should never pay attention to them. But I will say this you need to pay attention because forecasts are everything and that’s what the stock market is trading on.

And when I look at what’s going on with interest rates after this, we saw Trump come out with a tweet again and tell him Powell, we got a lower by one percent and and you know it’s really important for our deficits and less interest payments, which I think are a trillion dollars now, just an interest on our debt, which is insane. But when do you want to? When I look at Powell, Powell’s only concerned about two things, right, he’s concerned about the job market and he’s concerned about inflation. That’s it. Inflation’s’s concerned about the job market and he’s concerned about inflation. That’s it. Inflation’s in check and the job market’s very strong. He’s in a perfect position to go on vacation and do nothing.

And not only that. It’s nice to be in this kind of market where you have this giant massive bazooka that have stocks slow, the economy slows and yes, I said stocks because it’s not just the economy, because, believe me, the Fed pays attention to that stuff. And so, as a president, obviously you have this bazooka where they can lower rates considerably because they haven’t lowered rates yet, going into a lot of positives over the next that we’re going to see, tremendous positives that we’re going to see over the next nine months. But what are your thoughts on a CPI? Does it impact anything? We saw the two-year come down, so yields are starting to come down. Seems like things are much better than everyone was forecasting, where we’re supposed to see inflation rise a lot more because of these tariffs.

0:06:27 – Daniel Creech

Yeah, I think the expectations are important because when you hear commentators talk about, hey, inflation expectations for the consumer, you hear these consumer uncertainty and all this, these reports out there and they are high and they do impact because if you get into this habit, it’s just like the wealth effect. You know when your stock market’s going up and you’re looking at your account and your stocks are at all time highs and you’re seeing your money increase, you’re much more likely to go out and spend money in the world and everybody understands that money is emotional. We’ve been pounding the table on that. What’s wild here is that you have this dichotomy here between you have good information. You have good data coming out right now. Everybody should be happy that inflation is down. Yes, there’s uncertainty. Yes, there’s worries, yes, there’s unknowns, but what I hope the individual investor takes away from this is just how pathetic and worthless economists and media are, because today on CNBC and I’m not even going to name who it was because they don’t deserve it, but it was hilarious and pathetic at the same time, and if I didn’t have such a calmness about me, Frank, I would be upset. Yeah, because this inflation data comes out and they can’t. You know, I get it.

People hate Trump. So therefore, anything that’s good under Trump is bad. And the same old song and dance is hey, you know what? Just wait, it’s going to get worse because tariffs haven’t made their way through, and there’s a lot of truth to that. Tariffs have not made their way through the entire economy because they’ve been on pause, they’ve been rearranged, they’ve been negotiated, whatever who knows. But this mindset of hey, it’s going to get worse next month, just wait, hey, it’s going to get worse next month.

The impact on that to individual investors, in my opinion, hopefully, is not to be nervous and get out of the market. I think that’s what a lot of people are doing and that’s why you’re seeing a lot of people miss out on gains. I just think it’s a great example of the economy. Is not that difficult? People just tune out the media. We’re getting good inflation data now, but that doesn’t mean it’s going to continue. But you have to live in the now in the markets.

And what’s hilarious, Frank and I’ll, I totally disagree that Fed Chair Powell is in a position to do nothing. Fed Chair Powell is getting exposed for the politician he is Because, again, you cut rates before the election last year when market asset prices. Everything was booming all time high. Now you refuse to when your own measures. The PCE is getting down close to your target and you’re on record of saying you can’t wait until it actually hits your target. It’s all a show. It’s no different than the riots burning down LA. This is a character and theater. Just enjoy the show and be long stocks.

0:08:49 – Frank Curzio

Yeah, I mean, look, you’re not seeing any cracks at all right In anything In the bond market. You’re seeing yields pull back a little bit. Hold steady, pull back a little. No-transcript.

0:09:10 – Daniel Creech

If you watch anything on mainstream media today, it’s hey, wait till next month. They’re going to get a lot worse. That’s what they said every single month, and they might exactly.

0:09:19 – Frank Curzio

And that’s worthless guys. And I shared with. I don’t know if I did the earnings segment. I think I did that last week. I don’t know if that was for Wall Street Unplugged Premium. Guys, if you want to subscribe to Wall Street Unplugged Premium, it’s $10 a month and we’re getting lots of subscribers and less because we have great stock picks in a portfolio and it’s a separate podcast that Daniel and I do every Thursday with more details, right, so we talk more in depth about stocks and everything you can find that offer for the year.

And the reason why I’m saying that is because we break down a lot of topics sometimes. Sometimes I’ll forget if it’s a free podcast or if that one, but when we’re looking at earnings and the earnings growth that we’re projected to see is pretty amazing. And it’s not just earnings growth, because if you’re looking and what I like to do is look nine to 12 months from now what are we going to see with the marketplace? We thought tariffs would impact a lot and that caught us a little bit by surprise, and we thought that the market wouldn’t come down as much, because I didn’t think Trump would try to negotiate tariffs with every single country at the same freaking time, which is insane, right, because companies cannot operate like that and that hurt, and hurt the bond market. And you know, Bessent was, like you know, tapped Trump on the shoulder and said look, you know, you got to relax a little bit, and certainly in Europe, it’s going to happen in Canada, it’s going to happen in Mexico as well. It’s going to be very favorable where everybody wins, and those are going to be positive counts instead of saying tariffs are going to be negative. Now we just heard from China that hey, we just signed a deal, Trump said we’re at Earths and stuff like this. So much you could do under the table with China to make this work and it is going to work. Just a matter of how stubborn they are when it comes to Xi and Trump.

But if you’re looking at tariffs, that’s going to wind down. It’s a risk that’s going to be temporary and even if it does cause inflation, it’s going to cause a one-time inflation bump. It’s not like this constant inflation and constant raising prices, so that’s temporary. You’re looking at lower rates, significantly lower rates are coming. Maybe they don’t come right away, maybe they don’t come this year, but coming. Maybe they don’t come right away, maybe they don’t come this year. But I could tell you Powell’s terms up in May and the next Fed who’s going to get elected? The next president gets elected by, you know, the president, which is Trump. You know he’s going to make sure that he’s going to lower rates considerably, and Trump’s not talking about lowering by 25 basis points, 50 basis points. It’s several points.

You’re going to see much lower taxes due to this bill. You could hate the bill. You could say this bill is bullshit. You could agree with Elon Musk and, oh my God, it’s just crazy. That’s fine, that’s good. I don’t care what side of the aisle you’re on. Whatever you believe. Passing the bill is great for equities. It’s great for asset prices. You’re going to see less regulation for banks, right. So more money flowing into the economy, that huge more lending Again, that strong earnings per share growth which we saw.

Where people are like markets are so expensive right now they’re more cheaper than they were the past five years when accounting for growth. That’s what I broke down last week. When people say, well, the market’s expensive, you can say it’s not as expensive as it was the past five years and the market did great. Because it’s not, because we’re trading at a 21 PE right now and we traded at 20 on average for the last five years, except we saw 10% earnings growth over that time annually. We saw 13% earnings growth year over year from this quarter that just reported and through 2026, we’re going to see 13.5% growth. That’s what’s expected. So we’re growing much, much faster and only trading a little bit higher than multiple. It makes us kind of cheaper, not kind of. It does make us cheaper than we were.

Now you’re throwing in the government spending which I just mentioned, and you hate this. The government spending which I just mentioned, and you hate this. You hate that the bill might pass. You hate the government spending, and I get it. You can hold up a sign and say whatever hell you want, this is about your family. It’s about money, okay, so put the personal shit aside. It’s going to fuel asset prices, especially stocks.

So will we go straight up? Absolutely not. Will I take it by S&P 500? No, no, I wouldn’t buy the Russell either, even though the Russell is really starting to outperform and all the small caps are doing fantastic right now. Uh, I would go to just individual stocks that are playing catch up. You notice how there’s getting bids on nike, bids on starbucks, names that have gotten crushed.

Before we just saw a play which is Dave and Busters, which I love because the value of this company is. So is 3x the real estate alone that they own compared to you know. That’s based on recent sales. Uh, they just sold a couple of properties over the past, like you know, nine months, and it’s a company where the earnings were crappy and the stock’s up tremendously. It was up seven percent. Now it’s up like 16, 17, 18 because there’s massive short covering.

But you’re seeing companies that underperform significantly money starting to flow into them. So I wouldn’t tell you to buy the major indices. I’m just saying this catch-up trade is here. Uh, you see more orders for boeing. You’re seeing industrials lead the market right now. Holy shit, industrials are leading the market. Okay, if that’s not a sign to be bullish, so will they go straight up? No, but we’re still still for the past 60 years and a buy the dip mentality. So, even if we fall, if you see risks after china trade and tariffs goes to shit, you see the markets come down.

Add to your favorite positions Because the biggest trends when we’re looking at unemployment is fine. Right now we’re looking at no debt concerns in the bond market. Yes, it’s insane and people are like Frank, what are you talking about? How much money? I know you read a million articles. The world’s going to fucking end. I know you. It’s the same articles from the 70s okay, and 80s and the 90.

I get it, but more spending means that asset prices are going to go higher and when you’re able to do that while keeping inflation in check and keeping the job market strong you could say very strong historically, but relatively strong the past couple of years you’re looking at a perfect environment for stocks. Again, you’re going to see risk coming in and tariff analysis and stuff like that, but use it to your advantage. Buy some of your favorites. That’s what we did. We were on tariffs. However, we added so many positions. We really went all in when the market came down and now we’re doing fantastic, especially with an AI. But a lot of these trends still this AI cloud growing tremendously, blockchain technology, new regulation coming out A lot of these exist which make the market a really great place to be, even now and don’t listen to anyone, because it’s not super expensive and you’re crazy it’s less expensive when accounting for growth than it was over the past five years.

0:14:46 – Daniel Creech

I like that. Yeah, you got a way to go on highlighting the growth. One thing on the employment you’re right, there is no concerns on unemployment. But I do want people to watch this because I was very critical of the Biden administration, so I will carry that over to the criticism of the Trump administration, Frank, what I want people to pay attention to is the jobs numbers continue to come in higher than expected. There was 139,000 versus roughly 130 last year. Watch for the revisions and Biden we’ve ranted on this in the past.

I’m not going to go down that path, but there’s been revisions and there’s basically revisions every single time.

But you want to pay attention to those because they were massive during the Biden administration, which misleads on the employment side. Now, January was a partial reading, but February and March have both been revised lower, not to a crazy amount, but it’s something that I think everybody should pay attention to because that not only when employment rises, because you know they have this dual mandate that they talk about with prices and jobs but, Frank, it’s the how quickly that will change. So it’s not necessarily that I’m just using this example. I don’t mean to make light of this, but if unemployment goes from 4.2 to 4.8, Frank. There’s a big difference between if that takes a year, year and a half or four months. You know what I mean, just to make an example out of that. So just pay attention to the revisions, because we pounded the table on that during last time and it’s still continuing, along with government spending, which is why you don’t want to fight that wave that’s powering asset prices higher.

0:16:07 – Frank Curzio

Yeah, and speaking of asset prices, if you look at IPOs IPOs, usually I’ll say, hey, you have to avoid Coreweave. That came down and we said, you know, after, pretty much after they reported earnings, the stock fell below $50, I believe, and we said this is a $100 stock, right and right. And we said it on Wall Street Unplugged premium and also Wall Street Unplugged because I feel like people didn’t understand the total addressable market and what was going on. The CEO did a great job addressing. Listen, we’ve got some stuff wrong. That’s okay. We’re talking about IPOs.

Another one was Circle, and this is why I’m bringing up Circle, because Circle has been absolutely on fire. I mean, this is a company. Let me see exactly where it’s trading right now. I mean, you’re looking at 118 and what a shitty job by the underwriters. You know, JP Morgan, Goldman Sachs and Citi, I believe, were the lead underwriters on this stock and, holy cow, they get this wrong. They left billions on the table Right, I mean just in fees and billions on the table. This was supposed to come out 31, and it opened up like over 100, right, when it comes to.

0:17:05 – Daniel Creech

Circle. Oh, I don’t think it opened up that. No, it was in the 60s.

0:17:09 – Frank Curzio

In the 60s, but then I think that day.

0:17:10 – Daniel Creech

The surge yeah.

0:17:11 – Frank Curzio

Yeah, I mean it went up to the 90s and it ended up pulling back down. But this is like right off the start and you had Cathie Wood saying what her ETF she’s buying at the open and stuff like and we covered this in depth on Wall Street Unplugged Premium before it came out, just before it came out and actually said look, this is another name that’s going to go up considerably, considerably from here. I didn’t think it would open up where it opened up. I didn’t think it would be there a couple of days. But you have to look at the IPO and the way you need to analyze these companies is looking at their total addressable market and people are looking at price to sales, which, okay, if you want to look at price to sales, it’s a shitty metric. If you looked at price to sales, you probably would never have any major wins in your portfolio because you wouldn’t own any of the major technology companies. You wouldn’t own the Apples and Microsofts and Netflix and stuff like that. So price to sales doesn’t work. So for me, instead of going price to sales or P-E ratio, look at what P-E for Netflix. I mean well over 100, for how long? Look at what that stock does One of the largest in the world, in the top seven, I think six or seven companies in terms of market cap. Now you have to look at the total addressable market and if this company is the best company within that total addressable market.

Now here’s what I mean. You’re looking at stable coins. Stable coins are a massive deal. It provides a centralized, trust-based approach to managing public sector data, which is much better than the current system, which is centralized, meaning that stable coins are going to streamline operations, provide better data protection, reduce fraud, much lower cost, better for everyone. That’s how you disrupt markets and they’re going to offer much higher yields compared to the shitty yields that your bank is offering. So if you’re wondering how big the total addressable market for this, is stable coins right now the alternative. Okay, and you’re looking at this. This is the alternative stable coins to traditional finance. It’s cheaper, faster, better for customers, provides higher interest rates, more safety, right. They processed over $33 trillion in volume last year. You could be like, holy shit, $33 trillion. You know what that is in terms of the global M2 USD money supply as a percentage, Daniel Total.

0:19:10 – Daniel Creech

Ooh no, $33 trillion. There’s got to be a goofy amount 1%. I was going to say there’s got to be a goofy amount of supply, it’s only 1%.

0:19:17 – Frank Curzio

So you have a technology again cheaper, faster, better for customers, higher interest rate, more safety, right, much, much better all around. So, while the banks are jumping in, if you’re looking at JP Morgan hiring huge digital asset teams, Citigroup just had a big get-together with their digital asset team, a special conference call. I think it was a 45-page report. They talked about stable coins and how big this is. You’re looking at Circle as the pure play from an equity perspective. So you have two stable coins accounting for 95 of this two to five trillion dollar market.

The two trillion lowest estimate and this is me not saying oh, look how big this market be to two trillions from from the treasury is predicting this is going to be a two trillion dollar market. A lot of people have this at three to five trillion, most people. This is the treasury, so the lowest is two trillion. Okay, tether accounts for 67 of that total address the market again not publicly traded stock and it’s not going to offer you equity if you buy that uh through coinbase or wherever. And then you have circle, which has a 27 market share. So together they’re 95. And if you think circle is expensive here I want to give you an example, because when you look at apple in 2007, when it first released its iPhone, it was like holy cow.

This is great. People didn’t know the PE was 35, which was really expensive back then. It’s not like a 35 PE today where people are like, wow, it’s growing. 35 PE was I mean you talk about when PE ratios were like 15, 16 back then. Right, so it’s almost like double the market and it had $170 billion market cap. Today it’s three trillion. Three trillion, that’s what Apple’s market cap is. Right, because their total addressable market is huge.

Now, why in the hell would I compare Apple to Circle? Because you’re like it’s too totally, is it? Because Stablecoins has a bigger total addressable market than smartphones and with Stablecoins, as of right now, there’s much, much, much, much, much, much less competition right now. Okay, banks trying to change that. So when you’re looking at Circle and you’re looking at it going, wow, it’s $100 and this is crazy. And people are talking about even CoreWeave. The lockup period’s coming. I don’t care, because I think the people in the lockup, I don’t think they’re going to sell it, because CoreWeave is the same thing. They have access to NVIDIA, right, they streamline their system. They only take on debt when they take on new clients. So I’m not telling you to go ahead and buy call. We’ve had 130, 140, 150 here, when you know again.

We told subscribers one of our newsletters take a small position. You know under a hundred and if you listen to podcasts, you bought it at 60, under 60, probably. But when it comes to circles, start out with a small position, just buy a little bit. If it comes down and you think it’s hyped up, buy more. You’re talking about a company that’s on an island by itself. You could say Tether, but Tether you can’t really buy. And Circle is the pure play in this market that all the banks are dying to get into, are trying to rush into this market because they know they’ve been screwing their customers with fees and garbage and all the red tape for such a long time. Now you have the blockchain, now you have Circle. Now you have stable coins, which disrupts one of the biggest industries in the world that was untouchable for over 100 years. Finally, that’s what Circle is Okay.

So people are telling you Circle, you’re crazy, it’s IPO mania. It’s not IPO mania. There’s two IPOs that’s it that worked out like this, and both of them have total addressable markets that are incredibly massive that people do not want to analyze stocks like that. I have no idea why I don’t look at total addressable market. They look at shitty P ratios and they look at price of sales and they miss the Palantirs, they miss the Corwees, they miss the Netflixes, they miss the Microsoft early ons and their trends, because they’re looking at the wrong metrics. The reason why I know is because I used to look at those metrics and I’m a fundamental analyst and I got that shit wrong and now I’m not getting it wrong anymore. That’s why we have a lot of great big winners.

Yes, we have losers and we have names that we stopped out, especially during tariffs and stuff like that. But look at the massive winners that we’ve been talking about, whether it’s the Palantirs, the Corweaves, the Circles A lot of these names continue to go high and high because their total address on the market is massive and some of them have moats around their business, even when it comes to Netflix. You might not think that when I get to Disney in a little while, but it’s definitely true where they are the leader in streaming and they’re killing it in an advertising platform is just getting started. It’s just getting started when it comes to Netflix. So you know lots of positives there. I just want to talk about Circle really quick.

0:23:15 – Daniel Creech

So no, I like Circle. We ought to talk about Netflix, because I was going to ask you about that because I saw Bob Iger on CNBC Frank, I know you know this, but Disney went ahead and went against your wishes and paid lots of money for Hulu. But I have one stat for you that I thought was fantastic from Bob Iger. Now, I’m not saying this is making me a fan of the Mouse House. I do think, though, in the world of sound bites, this was absolutely brilliant. It shows you the power of marketing and a team around him. He this was absolutely brilliant, shows you the power of marketing and a team around him. He went on CNBC Frank and he said the year before I returned back here, they lost $4 billion in streaming and now this year we are going to make a profit of $1 billion. That’s a $5 billion turnaround In scene. That’s all that matters, Frank. That’s how you do TV, my friend.

0:24:02 – Frank Curzio

Yeah, he did do that and congratulations that I did do that and congratulations that that. You know I did that, but I could tell you the way he did it is wrong, and you may think I’m crazy here, and this is why. Look, I have a company that’s growing. Okay, we’re growing. We’re seeing more traffic on our platforms, getting more subscribers, and that’s great. Right For crazy research. I could have our profits increase dramatically if I fire all of my employees. Right, and in the next six months I’m going to say, wow, profits are up tremendously because salary is our biggest expense, and now we’re cutting that back dramatically. However, how the hell could I possibly grow my company with no employees? I’m giving you a drastic example, because what Iger did is he cut spending dramatically, he fired tons of employees, he fired tons of talent, he fired tons of talent and, most importantly, is he cut back tremendously in the billions in terms of how much content they’re providing for Disney+, and that’s why it is profitable. So, yes, you could brag about that, but what you’re doing as a long-term strategy is you’re weakening your company. But what pissed me off at Iger and I think Iger, from what I know, from what I hear in circles, is not a bad guy. Horrible job, you know, grouping J-Pick to be your successor, which is horrible. Now he’s stuck coming back to the company when he wants to retire and live a peaceful life. I didn’t like the interview because I’m just so surprised at Disney, where their growth model, their growth model right, we’re not talking about this and parks, and no, no, no, their growth model is 100% streaming. And if their growth model is 100% streaming, good luck with that. Good luck with that Because one is they just announced and they were positive at Hulu, whatever, they paid $400 plus million and it could have been $5 billion or whatever, and he talked about that like it was such a positive. They hired a third party within Comcast to buy the last one-third stake in Hulu and there was a floor valuation which I said whoever provided that floor valuation as a lawyer for Comcast, I mean he should give him, you know, millions and options. Great for you, because this is a secular, declining business. So you’re bragging that you didn’t have to pay. You didn’t have to pay higher because hulu’s bleeding subscribers okay, youtube tv is a million times better. Plus, they have football and sports and that’s who you are competing with when it comes to these companies, which is Google, which is Apple, which is Netflix, which is the biggest companies in the world. So you’re going all in on this model, meaning you’re competing against who Amazon, google, apple, netflix? Have you seen those balance sheets?

These guys are increasing spending dramatically on content. They’re buying sports rights everywhere. This is what Disney’s trying to compete with, okay, and they can’t compete with them. They’re lowering their content. They’re cutting their cost for content, for new content, which is insane, while all these companies are massively ramping up because they have the money. Because this is like where all these companies are massively ramping up because they have the money, because this is like it’s not even a secondary, it’s a third, fourth business for them, right? So they have unlimited capital to grow their streaming businesses and spending tons, right, especially sports rights, while Disney continues to cut.

Now there’s so many red flags here, Daniel, because ESPN Plus, they plan on charging. They came out $30 a month. For Good luck with that. $30 a month. For Good luck with that $30 a month, you’re going to charge for ESPN, considering you no longer could afford Major League Baseball, right? So you’re not going to have Major League Baseball after this year. You also cancel your deal with Warner Brothers and Fox to launch a huge sports streaming service.

Why did that happen? Okay, there was a big announcement. It was good I think it was called Venue or something. They cancel it. Why do they cancel that for Think about it Can’t be good.

You’re looking at Marvel movies. Marvel movies used to be the greatest thing in the world. Automatic, $1 billion. You can remake the same Spider-Man movie. You’re going to generate a billion dollars, it doesn’t matter. Good for you. That’s amazing that you’re able to do that. Seriously, the same Spider-Man movie before they really started, getting to no Way Home, and stuff like that which, as I’ve been explaining, comes out in the movies first, then on the Disney Plus platform.

So how do you compete with the big guys who have more money, who release their new content on their streaming platforms first, so you can compete on content? And how do you reward your subscribers saying, okay, we’re a smaller company, so maybe we charge cheaper prices. No, they’re charging higher prices. You’re raising prices on them. And Iger actually said you know what? We have room to raise prices further, do you? Good luck with that, because now what are you going to do? Is you’re going to provide a worse experience for them by throwing commercials everywhere, everywhere. It’s going to be like you know, have you? Have you seen? I should.

You know I’m not going to pick on sites, just in case a lot of these guys want to have me quote me on different things. I don’t want to pick on the media, sites and finance that you can’t even look at, because there’s 27 pop-ups that come up before you even get to the story. There’s like three or four of them Now. They’re an absolute joke. You just can’t even watch them. Yeah, they generate money from advertising and stuff like. Right, customers are starting to get pissed across the board. Right, everyone raised prices considerably over the past few years to account for inflation across all businesses. But if you’re providing a worse experience for them while raising prices, they will leave. I’ve been leaving almost everyone that has done that to me because I don’t. You’re raising prices. I get it for inflation, but now your service is shittier because you laid off employees. I’m not going to go to your restaurant. I’m not going to subscribe to services that are worse like that, and people are starting to move elsewhere. Okay, it’s opened up tons of new business for entrepreneurs, which is great.

That’s my interview with the Savvy founder Again. We just released that yesterday. Listen to that how he’s going after Airbnb, because Airbnb used to be the greatest service ever Great, disruptive, cheaper, cheaper, faster, better for everyone, better for you. You could, you know. You have hosts on there that have a bunch of properties now they raise prices considerably. So what is he doing? He’s undercutting that and saying no fees. Okay, that’s what you do when you open up these business, when you disrupt the market. It’s great being there, but even with uber, you charge higher fees. Now, all of a sudden, people are starting to use taxis more. Right. So with? So with Disney, there’s a lot going on under the hood.

Daniel, it’s another wave of cost cutting that just took place. That does not sound like a growing business to me. It sounds like a business that’s trying to survive. The cost cutting include reduced spending on content and letting go of 100 employees in the film business. Right, and that layoff announcement was just a couple weeks ago. It’s the fourth and largest round of layoffs in the past 10 months. Okay, and it’s all across Disney’s television operations and different operations.

This does not sound like a company that’s on the wave of growth and everyone all the analysts are bullish. You have to have 30 something out. It’s 27 that are buys six or holds, right. So most people are very, very bullish and maybe it goes higher from here. But if you notice what my thesis was, dan, what was my thesis on Disney, ben, it’s not that-.

Open up parks, yeah, open up parks, right, open up as many, open up thousands of parks. License the content, because you do have that content, which is great, great library, you know, not necessarily for streaming, to watch Dumbo, you know 20 times, right, especially if they watched it like 30 times. But if you’re going to buy Disney here and you think it’s going to go high, it could go higher, that’s fine. But my thesis has been, with that opportunity cost, I said own Netflix much better, pure play and streaming. Own Amazon, own Google Amazon is where you get streaming along Google. You’re going to get AI and cloud, which are massive growth catalysts, right.

So you know, since 2023, January 2023, and, by the way, I’m not just picking a random date and cherry picking here, cause if I go back further, it gets a lot worse for Disney. A lot worse for Disney If you go back since January 2023, Disney is up 20%, amazon’s up 130% and Netflix is up 280%. Okay, opportunity costs and investing is everything. So why own Disney who’s competing against the bigger guys, when you could own some of those bigger guys One, you could own a better pure play Netflix, just starting out with advertising, massive right, you’re going to see massive revenue growth going forward Stock’s on fire right now.

Or you own Amazon or Google, which again, you’re getting AI and cloud along with streaming as they’re growing, streaming and paying for sports rights and going crazy. And you have Disney who’s lowering their costs on content spending, which means that experience. If you’re not providing better new content or spending more on new content, then what’s the reason why to go to Disney Plus? Okay, so I think they’re going to bleed subscribers. The stock I wouldn’t say is super expensive here. It’s been flat for five years. The same price in five years. I just think there’s so many better opportunities if you really want access to streaming than Disney, and I still feel that way.

0:32:08 – Daniel Creech

You can go back further than that, Frank. In the middle of 2015, Disney was around exactly where it is today. So if you bought it in the summer of 2015 and held granted dividends, they cut them but reinstate them, but you would be flat on that. You would have seen spikes to 200 and down to 80, but to your point? That’s wild. Yeah, it is wild. Hey, somebody that is paying attention to you. Universal just opened up a new park just south of this and it’s on fire, you going Epic.

0:32:35 – Frank Curzio

No, I won’t go near it. Have you seen the lines? Go to YouTube and look at the lines of that park. No, I haven’t.

0:32:41 – Daniel Creech

I mean you can buy the Super Fast Pass. I saw the guy making the rounds on the TVs. I mean it looks cool.

0:32:47 – Frank Curzio

That’s not my bag. And the prices for Universal are freaking insane. They’re insane, they’re insane, they’re insane. I mean the costs continue to rise. And I think Kramer actually asked Iger that and said you know what about your costs? And he’s like well, we provide a better experience. Really, I’ve been going to Disney for 40 years. I live in Florida, I still go, and I stopped going to Disney probably three years ago because the experience is not better, it’s more crowded, it’s more expensive. Plus, you went way left and stuff like that. You know, for families and stuff like that, this is the core market.

A lot of them don’t want to see craziness at DEI and stuff like that. They just want to go there and forget about everything and have a great time with their. So stop throwing politics in their face. And Iger got that right and pulled back Not all the way pulled back, but he definitely pulled back. Chapik was just off the hook, holy cow, it’s insane compared to what it is now. But yeah, I mean, epic is charging crazy prices. If you go there, I think it’s two months out. You can’t even get tickets for two months out now.

0:33:37 – Daniel Creech

It might have changed.

0:33:40 – Frank Curzio

Wow, good for them. And people Great at parks Open up 100 parks everywhere. It doesn’t matter, even if it’s five years or 10 years from now. That’s why Tesla has a massive premium. That’s why AI companies have a massive premium. It’s because of what’s coming on in the future. That’s how stocks trade right now.

It’s holy shit, disney. Five years from now they’re going to have another 10, 15, 20 parks open. You know how much money you generate from that. It’s incredible. You can make.

I mean people will build the parks for you if you market them. I mean it’s insane, seriously, that’s what they’re doing overseas. That’s what they’re doing overseas. They’ll build the park for you if you can market them and you know you can lower your costs and just have all these parks all over the place because people love it. They want to go away and I tell you, you know, in the current Disney parks and even Universal parks in Florida, you go once every three years, four years, like when I was living New York’s different when you buy an annual pass and you go on maybe three times a year. I don’t want to go to Universal at Disney parks now and I’ve been going to bush gardens and stuff like that, which I think is actually universal still. But and that’s been fantastic, man, bush gardens, millions of roller coasters, best park ever hey, my daughters love that place, but that’s’s how I feel about Disney and just open up more parks.

If you’re going to buy the stock, buy the stock. You probably do okay with it, but I think the S&P will outperform it and I think the alternatives that I gave you Amazon, google and Netflix are going to outperform it significantly and going to continue that way going forward, because they just can’t compete streaming. They’re competing against companies that are literally 10x the size of Disney, competing against companies that are literally 10x the size of Disney, 10x to 20x the size of Disney. They just can’t really compete as much in that industry. So, moving on, let’s talk about AI. Do?

0:35:12 – Daniel Creech

you remember AI Into the world stuff. We need an into the world segment every time.

0:35:15 – Frank Curzio

AI is going to destroy the world. AI is done. It’s over. That trend is over. Remember that we heard that. What was it six months ago? It’s gone. Oh my God, it’s going to come down tremendously. Capex spending is going to slow. Yeah, look, I’m making fun of it. I’m poking fun of it and people might be like Frank, you’re being an idiot. I’m not being an idiot, it’s just. I’m a data-driven person and when I have contacts in, contacts for me, who are much smarter than me in this area and also help correct me and make sure I’m telling the story right, which I love, that’s why I love this network. Spending has not even come close to slowing. Nobody’s slowing spending. They haven’t, even though there’s all rumors oh my.

God, Microsoft canceled the leasing. It was a leasing contract that they canceled, right? Listen, if you’re looking at power itself, If you’re looking at power itself, it’s one of the best ways to play this, Because power and I’ll get into it more in a little while but we do not have enough power to fuel AI after three years, and I don’t think anybody knows that.

Everyone’s like oh my God, you have power. Oh my God, price is going to go up electricity. I don’t think people understand it. And when I look at all these announcements and you think that, hey, Frank, what happens if it slows? Meta yesterday announced a $15 billion investment in Scaleai, which gives them a 49% stake. Zuckerberg also said that they’re going to hire a new super intelligence team. This is yesterday, right? I’m giving you like daily, not even weekly or monthly news. Daily. The new super intelligence team, which will be handpicked by him, plans on spending nine figures to hire the top talent in an effort to create the world’s most advanced AI platform.

Then you have Amazon Just announced they will invest $20 billion in Pennsylvania to build data centers. You know how much $20 billion is for a company. I mean, we’re so used to hearing trillions. We don’t think that’s that much Amazon spent. This is $20 billion. I don’t even know if they had on the table the $100 billion they plan on spending this year. And again, that’s going to be broken out as you build data centers over a couple of years.

But you’re looking at these companies fighting and jockeying for data centers and when you look under the hood at what’s happening is the models that they’re counting for electricity, they’re all off and they’re all off a ton. And this is coming from many smart people within the industry who have to negotiate before the data centers with power companies of what they have to do to provide this power. When you’re talking about, hey, we’re going to do an 800-megawatt facility or 900-megawatt facility, then it’s like a gigawatt. If you’re looking at Saudi Arabia, it’s like a gigawatt. If you’re looking at Saudi Arabia, it’s a five gig. I mean, we’ve never seen anything like this before. And you’re going to continue to build outside of the us because that’s where you’re going to get the electricity. So it’s not just us that. That’s where electricity is going to. You’re going to need electricity to power this, but it’s everywhere around the world. And that’s why even these tariffs announcements, why do you think he’s bringing the leaders of the biggest chip companies that we have and data centers and stuff like that, to all these meetings in the middle east where you have, you know, the nvidia’s and amd’s there and even uh, you know ibm, which is at an all-time high, ibm holy cow right, which is pretty cool.

But when you look at that power and you’re looking at vertive, I mean this is a stock that you’ve been all over, Daniel right that you bought, even on a pullback. I mean it’s been a great winner for us. But there’s so many power plays and, I think, even utility companies, what we said over the past couple of years. These are no longer the utility companies that my late dad used to mention and have in his portfolio because they paid good dividends and it was slow growers, right and safe stocks. These are the new growth stocks of the market. They new growth stocks of the market.

They deserve multiples of 30 to 35x because of how much pricing power they’re going to have and how much electricity is needed and demand and how much demand is going to increase exponentially going out many, many years and we’re not looking far. I provided charts and figures on this and how many gigawatts that we’re going to need. I mean we’re looking at 3. A half four X growth over the next five years. I’m not talking about zero car emissions by 2050 and 2060. We’re talking about 2030. That’s around the corner. It’s not that far, guys. So the power and the modeling that’s going on, you have to be invested in the stocks because it’s just an incredible trend and the demand is going to be off the charts.

0:39:23 – Daniel Creech

Yeah, Veritiv was a big winner in Dollar Stock Club for us. Then it continued to sell off. I put it in CRA. We actually just added to that yesterday. Frank, you want to see how you turn an 86% gain into like 40? You add your second half, you add to your position. I’m nervous, I’m not going to lie. But yeah, Veritiv, we’ve talked about that a lot on both podcasts and, like I said, dollar Stock Club members were big in on that.

Frank AI, did you see the headlines with Google? I saw this yesterday. I wanted to ask you about it because you’ve talked in the past about how you typically don’t see and this isn’t all one sole reason, so don’t take this out of context but Frank’s talked about when you see the big tech companies firing or laying off people when their businesses are rocking and rolling and their stocks are at all time high just something that is out of the ordinary. Now, some of that could be over hiring during the pandemic. I remember and I know this is Apple and apples or apples and oranges, Frank but when I was back in the brokerage world coming out of 2008 financial crisis, everybody hired like crazy and then had to lay off because they realized, hey, we don’t need any of this. Now. I’m not making excuses for tech. I do think AI is playing a role, but I’m just simply saying when you see layoffs, don’t just assume that’s to AI, but don’t negate it either. In my opinion, Frank, alphabet is offering employee buyouts.

In what divisions? Would you be surprised if it’s in search and advertising? Now again, we’re not making fun or making light of people getting bought out or whatever. The point is, is that it’s hard or it’s not far for Daniel Creech to go out on a limb and hang an enemy assault. Frank, is this not AI powered in search and advertising? When we just had last week we talked about this Meta by the end of you just had a good play on how 2030 is not too far away, 2026, by the end of 2026, Meta is looking at having a lot of its ads completely run by AI. When they say completely, that dumbs it down for Daniel and says they’re going to target, make and deploy, well, that could be tough for a lot of people in the ad agency. Now, it’s not going to replace everybody but, as Frank has talked about in the past, you ought to be looking to work with this technology so that you’re not replaced by the technology, or am I getting this one wrong, Frank?

0:41:38 – Frank Curzio

No, I mean this is going to disrupt everything. You have to see the health care where they’re coming out. Know it’s going to determine if you need a cardiologist, if you need stents. You know with AI you’re going to be able to use. So the healthcare industry is incredible. Even drug discovery getting more drugs in the market at a much cheaper cost and much faster right, which the big companies need, because RFK is going crazy a little bit right With vaccines and stuff like that, no See he’s not.

0:42:01 – Daniel Creech

But See he’s not. But that is not crazy at all. He fired a panel of rubber stamp. See, that is, that’s bad.

0:42:09 – Frank Curzio

I don’t know if every single person needed to be fired. That’s all I’m saying. I agree that there’s the conflicts of interest and they haven’t disclosed the conflicts of interest I get. But to totally remove everything, it kind of says that you’re not in favor of, and this is where we come into and we can disagree on this. But everything is so freaking black and white, with everything that we do, right, it’s. You know, Trump created the riots because he hired the military. No, he didn’t. It’s all. It’s everything. It’s. There’s nothing in the middle.

Okay, do vaccines work? Some of them do I have kids? Okay, does the COVID vaccine is all horseshit to me. I think it’s all bullshit boosters.

I mean, we had data the first four or five months and, believe me, I know I had great sources of this, as you guys know, covering this industry before even johns hopkins started providing its stats right, because I had great leading doctors from around the world emailing me telling me what’s going on. That’s why we’re able to get out of that market. Get out of the market because we saw covid coming. We didn’t. We knew how, I didn’t think it was going to be as bad. We have total lockdowns, but they shut down china. Two, three weeks before the market crashed. Crash. That was the growth market, right, in 2019, 2019. That’s the growth engine of the world. They were shutting everything down outside of Wuhan. Right, you go to Wuhan. You could travel any place in the world right, that’s why it’s spread every place. But when you look at COVID, we knew within four to five months that young kids should never, ever, take this vaccine. And what did Pfizer do? What a lot of these companies do? They tried to mandate that, between six month old and six years old, that they had to take the vaccine, knowing that they don’t need it, knowing that not one kid, even to this day, not one kid under 12, has died from covid without having underlying conditions right, so they don’t need the vaccine. It’s better that their immune system fights it. It’s better. Later on, we knew that and they still pushed it right. So I understand. When it comes to rfk, and and and the CDC and everything that he’s doing, I get it. The CDC is a sham operation, I get it.

But regardless of that or how you feel in politics, you’re taking away a growth engine and a lot of growth and pipeline away from some of the bigger companies. Now, what are they going to have to do? They’re going to have to. You’re going to see M&A explode in biotech because now they’re going to have to partner with a lot of these companies. They got to find ways to grow.

Remember, these are companies, right? These are publicly traded companies whose jobs are to grow earnings and sales, right. So they don’t want to. They don’t want to cure anything. They want to treat everything forever this way. You’re on a pill forever this way. They make money forever off of it, right?

And you look at the M&A market. It’s going to change the dynamics. If they want to grow, they’re going to have to invest in more companies. I’m going to see the same thing with gold as well. There’s been so much underdevelopment and new major gold discoveries that now it brings these juniors into play, with gold at $3,500 and going higher and higher. Most likely that’s what happens in these markets, where you’re going to see M&A explode within small caps, and that’s why you’re probably seeing small caps really come up, even in smaller banking, where you’re going to relax the banking laws and regulations. Now you’re going to provide an opportunity for smaller mid-cap banks to become larger cap banks, which is almost impossible right now, and you get punished for that because your capital ratios go higher and higher as you get bigger and bigger. That’s how they protect the moat of the four biggest banks.

Not to get off topic here, but for me, when I’m looking at drug companies, when I’m looking at AI and disruption and what it could do not just in healthcare lawyers tremendously you probably watch TV and they cite a case from 20 years ago. All that stuff is one second. Now, right, you’re looking at markets where defense, obviously, and drones. We have AVAV in the portfolio. That fell to like 120. It’s back up to 200, right, this is a name that we did tremendous on and then we took half and we’ve had it in the portfolio since 2017.

Thesis still exists. You’ve seen drone companies do incredibly well. Now you know the educational. It’s going to disrupt every single segment and it’s not stopping. I mean, this is very early innings of AI, so continue to learn it. This way, you become more productive at your job, because if you’re just like I, don’t care about it, good luck, because there’s a lot of companies predicting some crazy stats about jobs and stuff like that and I don’t know, could it happen? Could you lose your job at AI? Yes, I think it’s going to come for a lot of industries. I mean, look what it’s doing in the first inning. Maybe you know you could say well, arguably in the second inning, but when it comes to disruption in terms of different industries, we’re very, very early here. So just be careful and start learning anything you can about AI. It’s not difficult.

0:46:17 – Daniel Creech

On the power side. Did you see what Musk said last week about Trump being in the or not? That tweet? I’m just kidding about power. That’s what I’m talking about. Musk, in one of his interviews recently, said that we would have a power issue, or essentially not be able to produce the demand, at some point next year. And, Frank, you can correct me here, I’m just thinking out loud. I totally agree that the power play is one of the best ways to play the AI trend and that’s through data centers and different nuts and bolts and even your utilities, like you talked about. But, in my opinion, just like what we’ve seen with uranium, if next year comes around and you start seeing headlines about, hey, you know we are short on power generation or you know demand is exceeding supply and we’re seeing strain on the grid and all that, I think that that would cause a massive, you know, surge in a lot of different companies and it would just be like what we saw with uranium Uranium can surge and bring up the whole industry and then it’s going to come and reset back. So we’re not saying it’s unlike any other market, but do you see that playing out the same way I do? Because, as you said, this isn’t going to just be a beautiful bottom left, upper right, steady chart. It’s going to be volatile. However, if, if and when we believe we’re early, that pounding the table on power is still a great way to play this. In fact, we were just talking yesterday and you know Frank was like man. We got to, we’ve been on this trend, but we have to figure out how to be as successful as possible, and that’s what is exciting about picking individual stocks and stuff.

Again, I think we need more headlines on the realization, because the projections are great, but, thank goodness, time only goes one way and that’s forward. So, like you mentioned, 2030 is not a long way, but guess what? So, like you mentioned, 2030 is not a long way, but guess what? When we get into 2026, just like all the power agreements that you see and are being announced, that’s great because they can act like checkpoints. We’re not saying that everything is going to happen just like people describe, but you know what, when you see a Constellation Energy and Three Mile Island talk about a deal that could be done in four or five years, at least you have a deadline to hold them accountable to. When you look at Galaxy Digital, it says, hey, they should be producing power for CoreWeave early next year. If that’s delayed, their stock’s going to get a hit. But at least you have a checkpoint or something to focus on.

And you’re starting to see, with the recent executive orders around nuclear power I mean Westinghouse, Cameco, all those guys are surging. I mean you, look at this, it’s not going to just go up, up, up up forever, but pay attention to this so that when they pull back, you can take advantage and you know what you own and why. And again, this, even if AI doesn’t turn out to be half, is what everybody is promising on the plus side. You’re not going to know that for, Frank, help me out a year or two from now at least, maybe even longer. And again, I’m not saying it will or it won’t, I’m simply saying you don’t have to get caught up in that to make sure you’re invested to ride the wave right now. That’s hopefully what I hope comes across.

0:49:18 – Frank Curzio

So my biggest mistakes that I’ve made I love to talk about the mistakes I made this way you guys could learn from them is being able to predict the trend but not benefiting the most off of it. And if you look at some of the greatest investors in the world and even the greatest investors in the world that I spoke to that I had the liberty of speaking to, which is really cool and face-to-face they all said that if you have a great idea, make sure you’re going to benefit tremendously off of it. If you’re right and throughout my career I have not done that right With my predictions I’m saying with AI, how are you going to benefit the most? And it matters because if you look at, say, smartphones, you can own Research in Motion, samsung Samsung has done okay or Apple. If you’re looking at streaming, you can own Disney or Time Warner and say streaming is going to change the world forever. Or you’re right, but if you’re on Disney, time warning, you did shit. And if you own netflix, it’s massive, it’s life-changing. If you own netflix at the beginning of streaming, I can tell you right now the best way to play AI for investors is through power. I mean, I’m bringing up a chart here, if you’re watching on youtube, of the massive demand and this isn’t even close. Okay, from what I’m looking at companies modeling this, they’re just not getting it. And this is non AI workload compared to AI workload 2025, 82 gigs right. This is now 82 gigs right in terms of power and this is estimated global data sent to capacity demand. It’s 82 right now. In five years it’s going to go up to 219 gigawatts and I’m telling you right now that that estimate is probably going to be closer to 300 or more by 2030.

And the reason why I think they’re getting this wrong is because they’re looking at current demand and current growth. And that’s what you do. You look back historically and say, holy shit, this is really growing and as you grow, usually you’re growing faster. As a percentage, it goes lower, right, because you know you’re not going to see 200% growth. 200% growth, it’ll grow slower, but you still see this incredible growth. What we saw in cloud, right? People underestimate how big cloud would be and look, these companies still growing their cloud divisions by 25, 30% when it comes to Amazon and Microsoft and even Oracle. The reason why they’re getting it wrong is because the technology that’s required how fast NVIDIA is working and they’re providing chips. They’re going to say it’s faster, acquire less power and all this stuff. It’s not going to require less power If you look at the newest, newest, newest generation of chips.

So if you’re looking at, say, you know the current chips and the Blackwells, a lot of these chips if you’re looking at them, they, they you have to have these cooling systems around them. I’ve seen a mining site. When you go in there you almost had to get out because it was so freaking hot, right, so you have these cooling things where they have air-cooled systems. Now they’re getting into liquid-cooled systems and with liquid-cooled systems, they’re requiring an upgrade in chip. And when you upgrade those chips which is now what everyone’s doing, right, when you look at hyperscalers, these are the chips that they want. So it’s not even a Blackwell’s, it’s the next step up that they’re looking at.

When it comes to NVIDIA, and the power requirements are almost double for the new chips, which is not being factored in. So what’s being factored in is okay if NVIDIA keeps the Blackwell chips and they’re going to which, by the way, every 12 months they’re coming out with new chips and they’re almost at scale where they could sell them. Right, Blackwell took a little bit longer and they said we have some supply chain concerns, but how fast nvidia is working and the new generation of chips? They’re not accounting for. These chips are going to have 50 75 percent more electricity usage, right? So you have to factor in that. Not only are we going to see this tremendous growth in data centers and gigawatts explode, but you’re going to see more electricity that’s required every 12 months from the new chips that are coming out to liquid cool these things because they’re getting bigger and bigger and bigger and electricity companies are warning and they’re telling these people, bill and Danny said is that you know we can’t lock in capacity for longer than a few years. We just don’t have it. And this story I feel like people like, oh, we’re not going to have electricity, I’m not kidding you, we’re not going to have enough electricity. When you’re looking at the numbers and you’re looking at the data and this trend is not going away, think about this. The people who know this are the hyperscalers, because they’re modeling for this and they understand what’s going on.

Microsoft just bought electricity for Three Mile Island for nuclear. That facility is going to reopen. It’s going to take minimum five years just to open that facility for it to produce nuclear. That facility, right, is going to reopen. It’s going to take minimum five years just to open that facility for it to produce nuclear. Think about the deal that they signed, three Mile Island. Assuming you’re going to get state, federal, local approval across the board, which is very difficult. Assume they get that in five years it opens. They locked in another 20-year supply. I mean that’s past long-term with what Warren Buffett thinks when he invests in stocks. I mean you’re looking at 25 years down the line of locking in power.

You think these guys understand this. I mean nuclear. We’re not even close to producing nuclear in the US right on a massive scale. And I know and again, miranati is one of my closest friends and running UEC, one of the best freaking uranium companies out there. You know we talked about uranium, Scott Melby in the industry at 30, 35. I mean we’re not even close, when it comes to this, to producing on a mass scale in the US. And they’re locking in deals that are not going to be able to produce at least for five, seven, eight years. I mean even the SMRs, which are, you know, the portable stuff. What is it? Oklo, whatever it is. Someone said it’s. I don’t know if it’s Oklo, whatever, I don’t know if I’m saying yeah, Oklo, yeah, Oklo, yes.

I mean you’re looking at a company that’s not going to generate revenue, probably for the four or five years, that doesn’t even know if they could scale their technology and valuation is the billions and billions and billions.

0:54:41 – Daniel Creech

It’s up 25% today.

0:54:42 – Frank Curzio

Is it Nice? They’re locking in electricity that long into the future, right, and these are the smartest people in the room, the biggest companies in the world. They’re basically telling you, look, we don’t know where we’re going to get the electricity from, so let’s just lock in shit from 15, 20 years from now. I mean, if that’s not telling you how much we need electricity, start buying utility companies across the board. Have them in your portfolio. Have a big allocation. When I say big allocation, 7% to 10% You’re going to do fine with those. Don’t go all in right now like scale into them. Over time You’ll probably see these little ups and downs in the markets that we have. Maybe a tariff announcement, maybe China’s pissed the US again. We saw that in AI. Some of these names have pulled back 30%, 40%, where we’re able to add.

To Look at the Bitcoin, bitcoin miners I would never think bitcoin miners, but one of them that we have in our portfolio and I’ll give this away because it’s much, much, much higher than what we recommended it now and I did a financing on and around this price and I just think it’s a ten dollar stock is is digipower, DGXX. Okay, we recommend this in our newsletter. You know, at a much, much lower price. Now it’s like what is it? 230, 240, I think this is a ten dollar stock because they own their own power and they’re expanding their power. They’ve been doing this for a year, saying, hey, we’re going to get into data centers, which is tier three from tier one, which is Bitcoin mining. So Bitcoin mining is doing great for you right now. That’s fine. It’s awesome, because Bitcoin prices continue to go higher, even though they generate a shitload.

A lot of these Bitcoin miners are switching to data centers because that growth you talk about 20-year growth model that people are dying. You look at the biggest companies in the world dying to lock in electricity and when you look at what they’re paying per megawatt and I look at DGXX this is a company that’s easily $10. So that’s where you want to find companies that own electricity, the ones that won’t really go to right and stuff like that, because they’ve been effing their shareholders forever with massive dilution and stuff. And seriously, I mean the guys who run the company make a fortune, but everyone else who owns a stock doesn’t make a fortune. But start looking at some Bitcoin miners, maybe even Canada and stuff like that, and that’s where we found DGXX, which is a great company.

I met with Sia, I talked to him and also Peter Lynch is also an investor and and it was a dollar stock Now it’s 220. Peter Lynch is the greatest value investor in the world, investing in a Bitcoin miner that’s going to tier three and that’s where you’re seeing the massive growth in AI and this trend is not slowing down anytime soon. Guys, it’s not. When it does, I’ll let you know. I have great contacts in this industry. It’s not stubborn. It’s not being like oh, you got to buy this, no matter what, like gold, not to Ogle.

You’re looking at AI. There’s going to be a lot of different technologies. You’re going to see companies come in and the technology is not as good, but look for companies that are providing the hardware around liquid cooling rather than air cooling, because it provides much better productivity gains for data centers. There’s a few companies. You can actually look that up on Google and find out. That’s going to be our next recommendation one of the companies that provide this service, which is a company you’re going to be surprised. I recommend in that space in our AI newsletter next week.

But, guys, pay attention to this If you don’t know too much about AI, start investing in the utilities, start investing in names that have power, because we’re going to run out of it, and the amount of money it costs to build this infrastructure and the amount of years it takes. I have no idea how we’re going to be able to service as much electricity we’re going to need for AI in the future. I just have no idea how we’re going to do it. I don’t have any idea and I’m sure Microsoft and all these big guys have no idea. That’s why they buy electricity, nuclear uranium for 20 years out, which is pretty insane.

0:58:00 – Daniel Creech

Run out of power Done. Yeah, no, listen, we’ve talked about GE, vernova, southern Company, duke. We’ve mentioned a lot of these. So, yeah, hopefully you have exposure. If you don’t, you haven’t missed it. What more do we need to do to kick them in the pants and make them take action? I don’t know, that’s what our job is Because you’ve heard of Duke Energy, you’ve heard of GE.

0:58:20 – Frank Curzio

Yeah, and don’t worry about FOMO, fear missing out, because you could feel you have fear missing out with Palantir at 30, 40, 50, 60. As long as that growth trend is intact, which it is with AI, you’re not going to miss out on these names. Yes, it would be nice if you bought them 30%, 40% cheaper. They still have tremendous, tremendous, tremendous, tremendous growth. Again, another mistake I’ve made is always figuring oh, I missed it. I wanted to stock at 20 and it went to 40. You know if I would have bought palantir 40 to 130, so you didn’t miss out very early in this trend.

That’s the best way for investors to play it. Start getting electricity utility companies into portfolio, yeah, definitely best way to play it. So, covered a lot. Wall Street Unplugged Premium tomorrow should be a lot of fun. So again, if you guys want to subscribe, that’s only 10 a month and you get a free portfolio of trading ideas. We pick one stock every year. Uh, every episode, almost every episode that we throw into a portfolio, it’s a trading idea and we really break down a lot more stocks for you and lots of ideas. So definitely worth it. If you guys want to subscribe, you can go to our website, curzioresearch.com, to find that offer. I think it’s like $100 for the year to join that Wall Street Fund premium and that’s it for us. Questions, comments, Daniel. What’s your email, Daniel at.

0:59:24 – Daniel Creech

CurzioResearch.com.

0:59:25 – Frank Curzio

Frank@CurzioResearch.com and we’ll see you. Premium subscribers. See you tomorrow, take care.

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