I just Bet HUGE on this 1 Stock‼️

The flapjacks are being flipped all over the place. Holy smokes. This ain't no dang joke. Cuz look at some of these moves out here. Netflix down huge here today. SpaceX down substantially. I believe SpaceX has now lost over 1 trillion $1 trillion in market value over the past month or so. IBM continues to get hit. And meanwhile, there's the lovely the lovely cheesecake factory. Look at that. In a sea of red, we have some green. And it is the good old Cheesecake Factory. So, we'll talk about Cheesecake Factory at the beginning of this video here today. That stock is up 62% this year. Insane performance. I'm going talk to you what I think is going on there. After we get done going through that, we're going to talk about what I bought here today. And I bought a stock heavy. I mean, heavy buy today. Okay, big boy buy. Like tens of thousands of dollars today I put into that stock. Also going to show you the public account in detail. We'll talk about that in this video here today. Then I want to react to Tom Lee. Tom Lee that went on CBC just the past hour. I want to go ahead and react to everybody's favorite Tom Lee. And then the last one we'll react to is Look at that suit jacket. Oh, baby. Let's go down to Miami. Look at this. Dan Ives. We're in the third ending of the AI Revolution. Looking forward to uh talking about that one. Appreciate y'all for joining me as always. Thanks so much for being here, folks. One thing, one thing only I need from you before we get rolling. Just smash that like button. Hit that little thumbs up icon. Make it glow for me. That's all I need from you. Additionally, make sure you're subscribed to the channel. Pin comment down there if you want to join my private group before we reopen it to new members and you want to join the wait list. That will be the pinned comment down there. Okay. All righty, guys. So, let's get rolling here. Let's talk cake. What What's going on with Cake? 62% the stock is up this year. It's up like I think it's 35% just in the past three months. Like, what is going on? Listen, I think there's a somebody big that keeps acquiring shares like big big money. Okay, I know you think it's you out there. I think it's somebody. Okay, somebody. And it's not Jeremy Lefay. Somebody just keeps buying up this stock day after day after day. And that's why the stock goes up even on red days. It goes up on green day. It seems like it goes up every day, right? It's almost like you can always count on cake stock for being up for you. The rest of the market, I don't know. Cake. Yeah, it goes up pretty much every single day. So, you know, obviously they have the expansion with Flower Childhood North Italia. You can say maybe people are getting it now. Maybe they like understand that Cheesecake has 10 15 years of growth ahead. And I think one of the most comforting feelings uh whenever you buy a stock, right, you got to trust in the management team. You got to trust in the business model. But can you trust that a company has 10, 15, 20 years of growth ahead of themselves, right? A lot of stocks is questionable. you're like, I can see how they can for sure grow over the next 3 to 5 years, but then you start trying to think about 10 years out, seven years out, 15 years out. It gets difficult, right? But for a restaurant concept like Cheesecake Factory, there's not even a question. It's like they just need to continue to expand a lot more locations of Flower Child North Cali. They've tested plenty of markets now at this point in time. They know their banger concepts. They're testing their other concepts concepts as well, and they're getting a lot of great results in regards to that. People are going to keep eating food and they're going to keep eating out more than ever, right? and food delivery keeps expanding, all that sort of stuff. And so you can see how a company like Cake can grow for 10, 20 years in the future, you know, just as they've done in the past 10, 20 years, but maybe even at a faster clip. And so that makes it very exciting. And so Cake has emerged as one of the most exciting restaurant concept stocks you can possibly invest in because there's a lot of flaws in in all the other ones, right? Like I have a restaurant, I have a it's called Out, right? Like Dutch Bros. We can see how Dutch Bros can continue to expand, but it's a onetrick pony, right? Like they got their coffee shops and that's it, right? And you got to compete directly head-on with Starbucks in that particular category. Uh Cava, another one-trick pony in regards to Cava. They got a lot of expansion for that brand, but it's a it's a onetrick pony, right? And also people look at it as it's a Mediterranean concept. Can that really be big like a Chipotle was big, right? Because obviously, we know Mexican food's so much bigger in the United States than something like a Mediterranean concept, right? Chipotle, their big growth days are over now at this point in time. So now they're just going to be basically like a value type stock moving forward, right? Texas Roadhouse, you know, really more of a onetrick pony as well. They have some other concepts, but those concepts seem like questionable. It's not like a North Italy or a flower child where it's like, oh, you're going to be able to expand this all over the United States of America and be successful on any market you go into and have great margins. For Texas Roadhouse, other concepts, uh, it's very, very questionable. So really, it's a onetrick pony. Texas Roadhouse is a banger, but it's just one concept, right? Uh Darden restaurants, growth is played out there. It's more of a value play. McDonald's, same exact thing. That's a value play, right? Domino's, same thing, value play. Pizza Hut, value play. Starbucks, big growth days are over. That's a value play. Young Brands a value play. So you have one one company in the whole restaurant category or out category to invest into that you're like, "Okay, I can see how this can grow massively over the next 10, 15, 20 years. It's Cheesecake Factory. That's the only one that in in terms of like they got many different concepts and they're not just a one trick pony. They're it. It's them or nothing. It's them or you know, you got to go all in just one concept and hope that one concept works or you got to buy a value stock in this category. So, that makes them pretty darn attractive. But yeah, I think uh big money just keeps buying up that stock, man. And it's it's insane. Like even I'm surprised by like how strong that stock is and and you know am I interested in selling any of my cake shares given the move? Absolutely not. Why would I? Why would I? This doesn't make sense. So I have 0% interest in selling cake. You know we can go to, you know, cake and see their P ratio. And once again, like I'm confident Cake has 10, 15, 20 years of growth ahead. And the company trades at a forward P of 21. And don't be surprised they beat those numbers. They usually beat their earnings estimates, you know, quite often, right? Look at look at look at look at look at look at it look. Right? Miss, you know, beats beats beats beats beats. So they'll probably come in the, you know, the real Ford P and cake right now is probably 19, maybe 19.5. Best case scenario is a Ford P is like an 18. And with 10, 15, 20 years of growth ahead, why do I need to run out of cake? So no, I'm good. Like I'm happy, right? By the way, if you want to ever follow me on X, that's always linked in the description area of all my videos. I post a lot of stuff on, you know, stock market related almost every single day other than the weekends on X. So, do keep that in mind. My Instagram is also linked below as well. Okay, so next up here, what stock did I absolutely load the boat on today? It is Netflix. Netflix. Big boy buy. Tens of thousands of dollars here today. I'm adding Netflix very aggressively. I'm now all the way up to 2,000 shares in Netflix in the public count alone. So, I'm adding very aggressively, right? I did buy more Celsius stock here today as well. So, I'm up to 6,290 shares of Celsius in the public count. The big the big buy was Netflix, right? And so, when it comes to Netflix, you know, and then we'll react to Tom Lee and then we'll react to Dan Ies here and share my opinions and perspectives there. You know, I'll break it down as simple as possible. I was talking to my private group about this earlier like Netflix. Why am I very confident in the stock? Why am I buying the stock so aggressively right now? Other than obviously the PE ratio is low on the stock, right? Um Ford P is like an 18 or so on Netflix. That's but a Ford P is not good enough to just buy a stock. You have to be confident in a business model. What I was talking about private group about is Netflix has three main growth levers for them to grow long into the future, right? one, they can always go up in price on their customer base. They can go up a dollar, $2 here, and it fundamentally transforms a business model. And so whenever they want to pull that lever, they can pull it. And people don't leave their Netflix. Like you got to Netflix goes up a dollar a month, $2 a month. People think people are going to, oh, I'm quitting Netflix. No, of course not. So they always have that lever right there. Whenever they want to pull that, they can pull that, right? The second growth lever they have is always attracting more subscribers. there's always more people to attract out there. Right now they have 300 million plus members. There's always more members to pull. And if you look at their expansion, it's across the world. So when they pull in subscribers, it's not just United States market alone. It's really around the globe. And so that's another growth lever they just continue to pull is more and more subscribers, more and more paying customers. And that leads us to the third growth lever. And this one's going to be much bigger in future years. And that is their ad supported business. So their ad supported business that's really a more of a newer business concept to them in the past couple years. So it's been rapidly growing but it's a small segment of the user base. Right now as that becomes a bigger raw number right it's going to matter much more substantially to Netflix's revenues and Netflix's earnings per share as the years tick on. And so that growth lever they can they got 10 20 years of growth ahead in regards to ad supported tier. So you have three big growth levers. More members, they can always attract more members. Two, they can always go up on their customer base. Three, ads, making more money from their ad business and that becoming a bigger component of the business. You know, it's rapidly growing, right? So, and then there's obviously there's other things they can get into over time like gaming and you know, a bunch of other categories that if they want to push into and new products and services they can come out with. So, it's not like what they have now is necessarily all they're going to have 5 years from now, 10 years from now. They're a great innovative company and they've done an amazing job with that business model over the years. So, they can always come out with the next thing and the next thing and they got some new fourth big growth lever, fifth big growth lever that we're not even looking at right now that all a sudden, you know, 5 years from now like, "Oh my gosh, they got blah blah blah." Right? So, you know, I still remember Netflix. I still remember Netflix as a, you know, a service you used to send your DVDs back to. You'd order DVDs online, they'd send them to you, and then you send them back, right? And I still remember when they transitioned to streaming. It was very questionable at that time. People were like, I don't know about this. I don't know if this is going to work out. Oh my gosh. If you would have bought Netflix stock back then, the money made. The money made. Oh my gosh. have some regrets about that because I was looking at Netflix back then and I I liked what they were doing but it was hard for me to wrap my head around like how much money they were really going to make long term cuz I was still somewhat newer in the market in my first few years. Sometimes when you're you know in your first few years you're like you know it's harder for you to see the future. Oh man, the amount of money I could have made disgusting. So um cuz that's over really the past 15 years. Uh, next up here, let's look at the public account in general. So, here's what we're looking at. We're looking at a beautiful portfolio. What can I say? What can I say about this one? American Express, they report next week. Looking forward to those earnings. Hope it goes down. I would love to buy more American Express shares. I That's one of those stocks I could never get enough of. I could never get enough American Express. Like American Express, if Buffett has it as his second biggest position, listen, I can have it as my second biggest position. If the big Buffett can have it, I mean, you know, that's just, you know, you know how strong of a moat you need to have around your business for Warren Buffett to have it as his second biggest position. Dude, the moat you have to have for to impress the Buffett, it's crazy to have it that be that big of a position, right? crazy boat in regards to that one. Uh Celsius, want to continue to add to that one. I think that has massive long-term potential here. I think long-term Celsius is a $100 plus stock again, which well it actually never technically hit 100. It was like 96 98 something like that. But I think the stock long-term is a $100 plus stock. So I'm trying to add as many shares I can in Celsius while it's still down at these sorts of prices. Uh Salesforce in Service Now, those ones are going to move huge next week. Service Now earnings will come out and you know like I said in regards to service now and Salesforce those companies just got to come through put up the numbers and you know everybody will chill you know in regards to selling those stocks and they'll start buying them again. You just got to come through with your numbers, beat earnings, beat guidance, have good confident conference calls, and people will slowly give up on the bare case for those SAS related stocks. But it's a big week for them next week. You know, next week, next week, Salesforce is likely going to end the week either 150 or lower or 200 or above. Like that's kind of how I see it. Um, you know, Service Now next week is either going to be 90 or below or 120 or above. That's how that's how big of a week I think it is for stocks like Service Now and Salesforce, right? Big big week for them. Uh Nike, obviously, if that one turns for us, oh, it's got to be big cuz that that's a big position and it's down huge. So, imagine we go break even and then imagine we go profitable on Nike. Gosh. Gosh, that could Now, sometimes I get this. Sometimes people say is, you know, they think Nike is uh PayPal 2.0, right? First off, that's totally possible, right? You know, all stocks, Netflix could be PayPal 2.0. Like, you know, every stock could be PayPal 2.0. Here's where I would say Nike is a little different than a PayPal situation, right? There there's a there's a lot of differences, but listen, like, why am I confident Nike is going to turn around? We're going to go green on that stock and then very green on that stock long term. Right? When it comes to Nike versus a PayPal situation, Nike is a turnaround play. PayPal was never a turnaround play. PayPal was a valuation case. PayPal was this is a really cheap valuation. If they can put up good numbers, the stock should make us a lot of money, right? PayPal, the numbers always were not very exciting. And so people wouldn't pay for the stock. So traded at 8 FordP, 9 Ford P, 10 Ford P, but it wasn't a turnaround play. Nike is actually a turnaround play, right? The other difference between a PayPal and a Nike is Nike global. PayPal very heavy US, very heavy US. So in regards to where they actually made their money, where a lot of their members were, those sorts of things, right, and especially from the Venmo side as well. Additionally, when it comes to Nike versus like a PayPal, and this this might be the biggest factor that I don't think people are considering here. Nike is a company you don't want to compete with. PayPal had to compete directly with Apple, compete directly with Google, big money, right? Plus, they had other competitors like, you know, what Square has with Cash App and and other products as well. But the, you know, obviously Android Pay, Apple Pay, those sorts of products, heavy competitive pressure over the past 5 to seven years. We can't deny that, right? They had to compete with those guys. Nike doesn't have, they are the big dog. They are the ones you don't want to go against. And so, when it comes to Nike, they have to just fight off like these small competitors like Lululemons. And you already see Lululemon fading hard, right? Um, Viori, these brands, you might not even hear about them in five years. Like I'm not kidding. Like like literally Aloe, Viori, like dude, like those brands might be irrelevant five, seven years from now. I'm not kidding you. Like that's how this industry is, right? Look at Lululemon. Like Lululemon was the hottest thing ever like two years ago. And now you can't find somebody to buy Lululemon stock, right? And you know, we went to the Lululemon store in New York City. My wife wanted to go, right? I'm like, we just walk right up to the register. There's no one in front of us. No. And this is this is New York City. This is what Fifth Avenue like the big stores like the ones that do crazy volume. And Nike store meanwhile is a zoo. Zoo in there. Llemon store. We walked right up to the register. First person like in the middle of the day like you know. So that's what I'm talking about. You know Nike has long lasting brand presence. These others are here today gone tomorrow. So anyways, could be wrong, right? know, was a year in the future, two years in the future, whatever. Sold Nike for a loss. I think that one will be just fine. I'd lose no sleep over Nike. Honest, I think exits this year, $5 plus. You guys know my opinion on that one. The numbers continue to get better and better. I think people understand the stock better. And, you know, we'll see five plus on that stock at the end of this year. My opinion. Uh Estee Lauder, very similar to a Nike situation. Turnaround play. The numbers have already started to turn very nicely. I'm already up $23,000 on that stock. We spoke about Netflix, Palunteers, big earnings for Palanteer. The issue with Palunteer is revenue growth rates could start to decelerate and they're going to likely continue to decelerate for the remainder of this year. And it's going to be interesting to see how the investor base takes a deceleration cuz so far all you've had is accelerating revenue growth rates. And all of a sudden, you're going to have this situation where, you know, revenue growth will go from like, you know, 80% down to like 65%, 60%, 55%, something like that. And that's going to be interesting because I'm just I'm really intrigued on how the investor base is going to take that. And so I think I think this next 9 months is going to be really big for Palunteer stock. And if people sell it off hard, I might buy back more shares of Palanteer again. Do keep that in mind. Uh Service Now, we spoke about that one. ELF on a shelf. You know, you why is ELF not a much bigger position for me in the public account? The main reason comes down to like I have so many ELF shares in my other portfolios that it's just like so overkill to a certain extent in regards to like how many ELF shares I really have. So that's why I keep that a little bit smaller position sizing in in regards to public account. But the public account is where I started buying ELF and that was $7 a share back then. Uh Revolve smaller position for me. great company overall. Um wouldn't be surprised if that stock exits this year 40 plus SoFi that one should end exit the year somewhere 20 $25 a share is my guess and longterm SoFi has unbelievable opportunity. Google McDougall has shown some weakness here recently, but that's a very strong stock. And then Fubo Fubo's interesting now they got the Disney person in there. I wouldn't be surprised if that one uh moves from here. But look at Netflix. We're looking at the charts feature thousandx.com. Look at this. You know, is this not the sort of company you want? Yes. Yes. Yes. Look at the historical P's come down massively. Meanwhile, everything's exploded higher. So, look at shares outstanding coming down. They're doing the big share buyback. So, you actually want Netflix stock cheaper in the short term. Not just so you can buy it if you're bullish on the stock long term, but so the company can buy as many shares as possible. So, ah, I love Netflix. Okay, next up here, not the service actually. I like basically never watch Netflix. Although they came out with the new quarterback show. I might watch that one. But uh yeah, I hardly ever watch Netflix actually personally, but everybody I know watch a lot of Netflix. Tom Lee, you there? Tom. Tommy. Tommy. Tommy, it's prime time, baby. Tommy. Uhoh. Hold your horses, folks. We got technical difficulties around these parts. >> How exactly do investors and traders reconcile the volatility versus what we could see as terms of long-term price appreciation for these particular types of stocks? >> Um, yeah, Tom, I know it's been a a very volatile week. If if people have been long those names the last couple of weeks, it's been a rough ride. But uh these companies are at the center of one of the most important strategic initiatives for the US, you know, which is AI and AI infrastructure and that runway has years ahead. Um and they're going to report next week. So I think that this pullback's healthy because it kind of gets rid of trapped longs, right? And it reduces speculation. And we saw in Korea that it was a huge margin call week. Um but I I would still stick with those. But I think those names are going to bounce later this year. So I don't think that the trade is over, but it it is just taking a beating. How much of the market structure as it as we know it today is causing some of these types of volatile swings that maybe in turn create opportunities, but at the same time create a good amount of angst and a good amount of discomfort with regard to just how people feel about whether or not this is a sustainable amount of momentum for the market. Uh yeah, I mean you know it's the the reality is there's push button liquidity for everybody now institutions and individuals and I think there is that with zero day trading options and leveraged funds definitely create more volatility. It is always uh creating an opportunity for the long-term investor because if someone missed uh the DRAM trade or the semi-trade and and now they can buy it or even Korea and they can buy it 20% cheaper, you know, that's the entry point. But yeah, it's very difficult. I mean, my institutional clients, many of them are having very difficult years because shifts in the themes or the winds or even visibility cause instant reaction and and and it's it's something people aren't accustomed to. Is leverage a factor in your mind? Forget about the world of leveraged ETFs, which is a a a different conversation that we can have in addition to what was going on right now. But from a margin debt standpoint, from a from a people understanding whether or not they should be long short-term something or short short-term something with pushb button liquidity as you point out, is that something that we should be fearful of? Has it reached a point where we could see further market structure deterioration the likes of which we have not seen up to this point? >> Uh 100%. Margin debt today is now up 54% year-over-year. Um, which is the sixth highest rise in like 60 years when you look at monthly data. And the other five times, similarly, the market consolidated over the next six months, five of the six times because when you have when when that cohort of traders is tapped out, they borrowed money, the market is vulnerable to a draw down, which is what happened in Curry, right? In Curry, I believe this the debt is 1.2 two million brokerage accounts had a margin call and and that may be as much as 10% of actual adult brokerage accounts. I mean some massive massive correction followed. So could that happen in the US? Yeah. So that's why a rolling correction that what we're seeing now is super healthy because uh it's not the whole market coming down you know it's just pockets of it and and people have ballots like owning the Mag 7 or the software stocks. not just from a research analyst position like you're in or a strategist position, you're also now an asset manager that's deploying capital on behalf of shareholders and clients. If you look at the way that your models have set up and kind of developed over the course of the recent market volatility, are there now any flashing lights whether they be red or green with regard to some of the stocks in your model or some of the stocks that are kind of on the cusp of making it in but are not there yet? Yeah. >> What's changing? >> Yeah. And and um you're referring to our Granny Shots family ETFs. You know, our GRNY is a large cap fund and outperforming year to date by more than 100 basis points. Uh it the stock selection process is a little trickier now because the whole market is more expensive. you know, now it doesn't mean that stocks uh are sells here, but it does the more PE rises, the more it's going to be subject to the impact from a 10-year yield as a competing valuation metric. So, I think the 10ear yield is getting to levels like at 47. If it gets to 5%, then suddenly we have to be very PE sensitive. But I think right now at 47, you know, we can still buy good stories, but just cognizant that the multiples aren't low. >> All right. So, a lot of traders watching what's going to happen with risk-free rates visav the price to earnings multiple expansion. All right, Tom, stick around for us right now. I want to get to the Apple story back in the spotlight after briefly overtaking. >> So, my opinion on that is, you know, should you be fearful of the 10-year, you know, approaching more to the 5% range? Is that mean trouble for stocks, P ratios, those sorts of things? My opinion is no. Uh my opinion is, you know, whether you're at 46, 49, five, I don't think it matters that much. I don't think somebody's like, "Oh gosh, I'm going to pull my money out of stocks or not invest in stocks because I'm going to go in a 10-year." If you talk 7%, 8%, now that's where you run into issues cuz whenever you learn about the stock market, you learn like, "Hey, if you put your money in an index fund, you can probably get like 8% a year." That's the number that's thrown at you. uh you probably get like 8% a year in an index fund right so that's a number people naturally think and so if you start approaching an 8% number but risk-free as it's seen right that's when you run into trouble that's when you all a suen people are like I actually don't know if I want to buy stocks right if you're at 46 or 48 or 49 or five eh you know stocks is still way people want to go you say 75 oh now some people are like wait risk-free and I could get the number that roughly My brain is programmed to think an 8% number. Now, somebody like myself, a stock picker, you could put a 10ear and 9%. And I'm still not interested, right? Cuz I'm thinking about myself as a double digit plus returner a year. So even a 9% I don't care. 10% I don't care. Told me 15 that like what is a number that in my brain personally I'm like oh shoot 15%. you go 15% plus even I would start saying dang I don't know if I want to put my money in the market but I probably would because we probably already have a huge stock market crash and so stocks would be at generational discounts so regardless of the situation me personally I'm probably always buying individual stocks cuz you had if you had a 15% tenure we'd be in an epic stock market crash like generation multigenerational buying opportunity in that situation right be just ridicous ridiculous. So yeah, I guess no matter what I'm always stuck buying stocks. That's fine with me. D I >> new position. What kind of speak seat are you speaking from? >> Yeah. So again, partner and and really be uh you know on a research perspective that's going to be my main role at Yorkville Lives, but it's a modern merchant bank. I mean this is something for me 25 plus years on Wall Street. It's the evolution. It's the next step. It's something to really build something that I think is going to be special in this market. but really focused in terms of sectors, AI, tech, infrastructure, energy because where I view the fourth industrial revolution. So excited to do this and found just the the best partners to do it with >> these companies are borrowing a lot of money. They're spending a lot of money. The questions we're asking this morning based on developments out of China is whether they're borrowing too much and spending too much. What's your reaction to what we've heard from China? I think this is just a called a white knuckle moment, no different than a mini deepseek moment to some extent. The reality is like look models, you're going to have 10x more models over the next five, seven years vertical, geographic. The reality is is that it's anthropic and open AI's world and everyone else paying rent relative to the models. Gemini clearly narrowing the gap. China, you're going to continue to see, you know, very good models come out of there. But it's my view when you talk about broader spending, the trillions of dollars spend that you're going to see in AI, it's less about the models. It's about the data. It's about ultimately the buildout. And I think that is something that will get validated to Q earnings. >> But doesn't this show that >> so this is what you ran into with the search engine um revolution, right? you have this phenomenon that happens where like a lot of search uh search engines came out, right? There was Google obviously that became the huge winner winner chicken dinner long term, right? But there was Yahoo search that was massive at one point. There was ask Jeeves which I used as a kid. Uh there was I mean there was just so many it's funny as Jeie think about now that was probably like the way you would frame things for that was a little different. It almost was a little bit more like an LLM um in those days. And then you had Microsoft which what was their product called? I think it was called Bing, right? And uh you had many other companies that had search engines, but at the end of the day, we know who won that, right? Now, I think you're going to have the same thing happen with LLMs where you have a lot of different people that throw their hat in the ring and try to do this, right? And like, hey, here's our LM, but there's probably going to be one or two that end up being the big winners long term. And so, the other companies will end up likely falling to the wayside. And so like a meta meta is a huge position for me. I would love it if they could have [snorts] the most successful LLM or one of the most successful when it comes to like people using it. Do I believe they will? No, I don't believe they will. Even if they have the, you know, among the best ranking benchmarks for this and that, I still don't think they probably are able to pull it off. No different than was a lot of different social medias and engines and at the end of the day like everybody ended up using Facebook and Instagram, right? And so, um, yeah, plenty of different messaging services came out over time and everybody ended up using WhatsApp. This is how it is. It's just like human nature. Like everybody kind of gravitates toward one or two things and then like those things end up becoming the big things and then everybody else that created kind of competing products just kind of falls to the wayside. Like do you think Coke and Pepsi are the only companies to ever create soda? Of course not. been a million companies over the past 100 plus years that try to create a soda to compete and yet everybody ended up just drinking Coke and Pepsi, right? Or the brands that are owned by Coke and Pepsi. So that's just how it is. And so um you know yeah >> China is not that behind the United States. They're neck and neck when it comes to AI development. >> I think for the first time in 30 years, it's not even a question that US is ahead of China when it comes to tech. Now when it comes to models in terms of the more of a commodization open source and the way that they're going after it are they ahead when it comes to robotics when it comes to energy yeah but there's one chip in the world fuel in the AI revolution godfather of AI gentia and I think what you see from hyperscalers what you see from open AI and anthropic this is going to be an arms race but I don't even think there's a question where the US is relative to China when these moments happen you'll see jitters white knuckles stocks will sell up. >> Why are you trying to able to do it cheaper? >> Because at the end of the day, the open-source model, if you look, whether it's Deep Seek or any others, when you compare it to what Anthropics doing to what Open AI is doing, that's tip of the sphere. In other words, Open AI and Anthropic, they're going after the enterprise market. The models are just really the start of what the broader sort of end-to-end framework is going to be. When you think about where the vast majority of spending is going to be in AI, it's not necessarily in the models. It's in the data, the data center buildouts, the capbacks, the where ultimately it's going to be physical AI. I just continue to view commoditization will continue to happen on the models. I don't get as sort of, you know, nervous when moments like this, the spending phase. Can we talk about the end phase? And I know this is really difficult to do. Where do you think the money is ultimately going to be made? The application lay the infrastructure layer. Where do you think the money will be made? >> I think it's it's the application infrastructure layer that's going to really be the hearts and lungs because if you think about today all the data centers getting built, those data centers are going to it'll be like a a factory for cars. You build out the factory but now you actually need the lines, what's the operation? The when you look at as more and more companies on the use cases, that's enterprise, that's software, that's use cases. Are you confident the app layer won't become commoditized? >> I would tell you the more and more companies that I talk to that are deploying AI and going down the AI path. I feel that that's become less and less of a risk. They'll be winners and losers. They'll be ones where ultimately they're on the wrong side of it. And maybe some of those stocks are reflecting some of the nervousness. But the view today is that look, we're still in the third inning of the AI revolution. Now we start off, we're in the second inning. This is not seventh, eighth inning because of where this is all going in terms of physical AI. Look what Apple's doing. That's just starting the consumer AI revolution where they're essentially a toll booth in the AI highway. >> What's going on with Alphabet and Gemini? Why are they behind? >> Yeah, there's always a ton of ways. Whenever you're going through one of these tech revolutions, there's a ton of ways to make money from it, man. There's a ton of ways. So for instance, the mobile revolution that is a tech revolution that has happened since I've been an investor in the market, right? And that started to kind of take off shortly after cuz I got in the market the end of 2008, right? And over that next three or four years, everybody started talking about the mobile revolution, the mobile revolution, right? And what that was going to mean for the economy, what that was going to mean to companies, right? And a lot of companies made a lot of money off that. Obviously, who made the most? Apple. Apple. They made fortunes of money off that. But then there was all the semiconductor companies, the Cirrus Logic, Skywork Solutions, Quervo, uh Qualcomm, uh Texas Instruments, like oh my gosh, all the different chip companies made fortunes of money off this as well because all these iPhones and iPads started getting sold and Apple watches and they had to use all these different semiconductors. So those companies built great businesses on the back of Apple's success, right? And some of those companies got commoditized over time, but they still made a lot of money over the years, right? And then off of that, a ton of apps were created that made businesses successful. Some small, some midsize, and some became giant corporations. Like I don't think Facebook would have ever became as big as it did without the app store revolution, the mobile revolution, right? And high-speed internet taking off, right? And what that ended up producing was everybody could use Facebook and Instagram and WhatsApp right on their phone all the time and instantly, right? And then how much money they made off of that from advertising and Google's success there. And you know, obviously they made money through the Google app, but then also everybody being able to now use high-speed internet from a mobile device helped YouTube become this big thing, right? Which made them fortunes of money. And then obviously on the Android side, they made fortunes of money as well from the services fee. And so you just keep going down the list, keep going down the list. And um you're going to find more and more companies built massive businesses back on the back of the app store, right? You can even talk about companies like Uber, companies like Door Dash, like those companies were were nothing before the mobile revolution. And then because of that, all a sudden people could book a ride right on their phone. They could order food right on their phone. Like you know, oh my gosh. And so you just keep going, keep going. And so with this tech revolution, you got to understand there's going to be a lot of companies that make a lot of money off this, but there's going to be certain companies that disproportionately make disgusting amounts of money from this. Okay? And so that's just how it is. And that's how it is in every tech revolution. There's a lot of money to be made from a lot of companies. Some companies are going to be losers. There going to be a lot of winners. And then there's going to be some companies that are bigger winners than anybody ever imagined and they're like, "Oh my gosh." Like that fundamentally changed that company's trajectory in their long-term future. I I I view that in terms of everything that they're doing. They'll be behind at point. But the reality is that their endto-end framework from cloud to Gemini to what's happened on search, they could catch up pretty quickly. And I just think they've narrowed the gap much more than anyone would have thought. And it goes back to a year ago. New York City cab drivers bearish in Alphabet. Look where they are today. >> Where are they? Where are they today? >> I say New York City cab driver is still bearish. Maybe they're bearish on Microsoft versus where, you know, >> I think you've got to come up with a new phrase because in my experience with my New York City cab drivers, they they're better on this market than most people I speak to on a daily basis. >> And that's very healthy because of ultimately more and more retail. long and strong. They they they have a big seat at the table. And I know New York City cab drivers now they're driving Bentleys because of this market. >> They'll be sent I remember years ago they'd be like, "I really like Tesla." And be like, "What? This multiple? That's crazy." And then Tesla just >> as somebody that was just in New York City. I can tell you that's not the case. Okay. All right, guys. Appreciate you joining me as always. Thanks so much for being here once again. Uh if you're looking to join my private group, get access thousandx.com, all those sorts of things. We're reopening the group next week to new members. So, if you want to join the wait list to get in front of the line before everybody starts applying, uh there'll be a pinned comment down there. You join the wait list and you'll be the front of the line uh for getting in there. Okay. All righty, guys. Much love as always and have a great