NeoCloud Stocks Are Crashing: Is This Your Once-in-a-Generation Buying Opportunity?

Hello and welcome to being exponential. So neoclouds are racing to build the infrastructure powering the I revolution. But with massive debt loads, rising borrowing costs, and a brutal sell-off across the sector, investors are beginning to question how sustainable that growth really is. Even Elon Musk recently warned that some will make it through, but not many, predicting widespread consolidation. So Luke, today we're going to break down the state of the Neocloud market. I personally like to get the bad news out of the way first. And in this case, uh, uh, let's get started with Coreweave. That company is kind of the front runner in terms of the bad news because their debt situation, how much they're lowered up has been essentially percolating to the other Neocloud. So, what's your current take on Corewave? >> Okay, Brook. So, Neocloud stocks, they've been absolutely crushed. They have been the epicenter of the selling pressure on Wall Street over the last few weeks because the driver of that selling pressure has been AI financing fears. And AI financing fears hit Neocloud stocks the hardest. There's a lot going on, but if I had to explain it in simple terms, you said, "Let's get the bad news out of the way first." Well, here's the bad news. Hyperscalers are spending all of this money. Amazon, Microsoft, Meta, Alphabet to build new AI infrastructure. They have spent so much money that they are now depleting and in fact have depleted their cash flows. Meta just reported their free cash flow negative. We're going to get Microsoft, we're going to get Alphabet, we're going to get Amazon. I think all of them will go free cash flow negative except for Microsoft. and that'll be just marginally positive on free cash flow. Point being the hyperscalers are spending so much money that they have drained their cash flows and they are going to keep spending a ton of money because they are seeing massive and positive returns on that spending. We just got the meta numbers. 14% increase in ad price in the quarter. Ad prices in the quarter because of improvements from AI in the targeting and efficiency of their ad platform. A 9% increase on time spent on the platform. You and I endlessly scrolling on the meta and Instagram feeds because the AI algorithms are getting really good at feeding us content we want to watch. So they're see and then Muse got the 10 million users in 6 weeks and I think 20% of those are are dailies and a lot of them are using it for shopping and the average ticket is like over $200. So we're not talking about you know going out and buying burritos with Muse. We're talking about big ticket items or trusting it for big ticket items. So Meta is seeing massive ROI and so they're going to keep spending. They're going to do equity financing. They're doing financing right now. They're considering debt financing. SpaceX just said debt financing. Their numbers are fantastic too. So these companies have drained all their cash flows and now they're going to spend more because they want to spend more because they're seeing good ROI on that spending. What that means is they now have to go to external capital because the internal capital is gone. External capital comes in two forms. Equity financing or debt financing. These companies will look at the cost of equity and cost of debt and decide which is better for them. The cost of equity right now is pretty low. The cost of debt is also fairly low. So, it's kind of it can go either way. Meta chose equity. SpaceX chose debt. Amazon's chosen debt before. Alpha chosen debt before. But the big picture here is that a lot of these companies are now going to the debt markets. There's only so much capital in the debt markets. And so if all of a sudden Amazon goes over there, if all of a sudden Alphabet goes over there, if all of a sudden Meta goes over there and SpaceX goes over there and all these big investment grade companies go over there and they need big loans, right? SpaceX just did 40 billion. Meta's talking about 95 billion. We're not talking like I'm going to go raise two, three billion. We're talking tens of billions up to hundreds of billions of dollars that they're trying to raise in the debt markets. that is going to pull a lot of the money upstream. So, a lot of the money in the debt markets is going to flow upstream to the big dogs and then what's left over is a more limited pool of capital for the smaller dogs who are the Neoclouds. The Neoclouds need debt to build the extra compute that they want to build. That's the whole business model. go out, get money in debt markets, use that money to build compute, sell that compute at above what they're lending or what they're uh, you know, paying for the debt. That's the whole business model. And so now there's a more limited pool of capital to flow downstream to the NEO clouds, which means that they're going to be competing more fiercely for that capital, and that capital can charge higher terms. You're seeing Cororeweave's um uh credit default swaps up to 15%, right? like we're seeing massive rates being charged >> uh for this financing downstream. So that's what's happening and that's why this is now a fear all of the sudden because now here in Q3 we have drained the cash flows. Now here in Q3 we are seeing big tech go more aggressively in the debt markets. Now here in Q3 big tech is crowding out Neoclouds in the debt markets and so Neoclouds are now fighting for a smaller pool of capital in the debt markets and that smaller pool of capital is being more selective with its financing. And that means that if some of these companies, you know, downstream neoclouds do not get the financing they want or they need, then those companies go belly up. So that is what's happening in the NeoCloud space. That is why this selloff has been broad. It has been shoot first, ask questions later. And while we're seeing a lot of these stocks down 40, 50, 60% in a matter of a few weeks, that is the crux of the sell-off. Now, actually, before I move on to like my hybridized bull thesis here, because I do think that there's a silver lining to all of this, gonna send it back to you. Do you have any questions about the the sell-off? Like, not, you know, could it rebound, not what comes next, but just what has happened so far? No, because it all seems like sentiment and the the expectation that the bad thing is going to happen without accounting for, you know, a company like uh Cororeweave actually increasing in revenue. So I I I'd love to hear your uh you know hybrid theory, >> right? Yeah. I mean it is definitely sentiment driven. It's not fundamental driven. We're seeing all these companies say you know demand is sold out for 2026 2027 contracts 28 visibility etc etc. Like it's not a fundamental deterioration. It's a sentiment deterioration, but that matters because, you know, even if Cor Reeves is sold out in the 203, if they can't get the money to build the compute, then it doesn't matter, right? It doesn't matter if your order book is, you know, out the wazoo. If you don't have the money to fulfill the order book, then you're not going to recognize revenues and profits while you have these massive interest payments going on. You're going to go belly up. So, that's why, yes, it is a sentiment driven selloff, but do not discount the sentiment because it matters. It matters tremendously. >> So my hybridized bull thesis is that everything I just said is correct. But the positive spin, the silver lining, the caveat is not all of them will go under. There is still a pool of capital to flow downstream in the debt markets to the neoclouds. That capital will concentrate in the best neoclouds. We're talking Neoclouds that aren't as levered, Neoclouds that have lower funding cost, Neoclouds that have counterparties, Neoclouds that own the land and own the power, have PPAs, Neoclouds that have uh strategic backing, partnerships with Nvidia, investments from Nvidia, those companies will get all of the capital that flows downstream. And so let's say there are 200 to 300 NeoClouds out there which I think there are most of them the vast majority are private >> then maybe let's call it 200 maybe 194 195 go belly up and then you have five remaining and those five remaining don't have to fight with the other 195 anymore. They get all the capital. they are flush with capital and whereas the pi for excess compute for neocloud compute before was split amongst 200 different parties now it's split amongst five and so my hybridized bull thesis here is that yes we are going to see a massive consolidation in the neoplow industry because of what's going on in in the debt markets but the survivors of that consolidation are going to have more market share to eat per company, which means more revenue per company, higher margins per company, and more profit per company. And this is not unusual for a new technological paradigm shift that normally when we had when cloud first became a thing, there were a whole bunch of different cloud companies. And then it centered around, you know, basically three, Google Cloud, Azure, and Amazon Web Services. And now Meta is trying to get into the game a little bit late, but basically the entire market went from hundreds of players down to three. We saw that with telecom. We saw that with internet services. We saw that with everything. This is how we saw it with automakers. You know, there were hundreds of automakers back in the 1920s. And now there's only a handful here in the United States. Actually, a handful globally, right? So, >> this is how new technologies evolve. You get this massive interest in this new space, hundreds of new entrance, and then there's some rationalization that happens. You get a massive consolidation. a lot of those go to the graveyard and then the remaining stalwarts become titans of industry and big long-term winners. So that is what how I expect this to play out and that is my hybridized bull thesis on the neoclouds right now which means from an investment perspective the thing to do right now is to selectively very selectively buy the dip in Neocloud stocks based on the quality of that Neocloud business. Again you want to look at low funding costs. You want to have counterparties. You want to have big contracts, long-term contracts. You want to have PPAs, power purchase agreements, owned power, owned land. You want to have a good balance sheet. You want to have strategic backing. If you have all those in ample quantity, then you are going to be fine. And based on my analysis, a few publicly traded ones do. But you know which one doesn't? The one you asked about, Cororeweave. Orweave has the worst balance sheet of them all. I mean, look at this. I'm sharing the screen with you right now. >> We got five billion in cash against 52 billion in debt. 52 billion in debt against 5 billion in cash on a 32 billion market cap with revenues this year of 12.8 billion and free cash flow of negative 27.5 billion. in terms of just like the raw financial profile of this business, it is not that attractive. They do have some Nvidia backing. They do have some things that are, you know, kind of cool about the business, but just the financial profile is so ugly here that I really do not think this is one of the survivors, one of the the winners. They have the biggest backlog, but they have the weakest balance sheet. And so they are most exposed right now to the to the financing fears. And so I think that coreweave is one that maybe you don't want to buy the dip on. I mean maybe it has a bit of a little comeback here, but we broke some pretty big technical levels, right? 65 was kind of a level we needed to hold. 60 was a level we needed to hold. We lost both of them. And so now we're just kind of free falling. And maybe it gets a rebound here. I I bet it does. But long term, I'm not a huge believer in the name. I'm not sure it's going to be one of the last men standing in this consolidation. >> Gotcha. So it it looks like the the Pontiac or the Saturn in this uh Neocloud race uh that we're having. So now it it was not alone in its 30% dip. So our favorite name Nebius also had a a roughly 30% draw down from its high. So you mentioned what you're looking for. So could you highlight what are the positives in Nebas or you know potentially the negatives uh in contrast to >> well first off let's just look at the balance sheet on Nebius the balance sheet on Nebus is is far more attractive and then we'll talk about the terms of their debt which is also very attractive so we'll pull up Nebius they have 8 billion in cash against 10 billion in debt right Corey was five against 50 you know it was it was a 10 to1 ratio this is pretty much one to one okay and then you have that 10 billion in debt against what's going to be 3.5 billion in revenues this year. They have a $ 48 billion market cap. And then look at the growth of this company. So we're first off, let's look at the cash flow. Remember, Corey was at -27 billion in cash flow. We're at 15 billion here. So it's still negative. It's not super attractive, but it's not as negative. And look at the growth. 553 267 53 37. Eat going from 1.4 to 35. So this is a company that if you look at the financial profile of the business, they have a pretty balanced balance sheet. The market cap is still pretty high relative to the debt load. So they they can issue equity, right, if they really need to. The growth is just extreme and the profitability profile is dramatically improving. So across the board, this company just healthier in terms of like the raw financial profile of the business Nebius relative to to Core Week. Now in addition to that, Nebius has um their funding costs are are very very low. So their existing debt, this 10 billion right here, it's very cheap. They have August convertibles that carry coupons of 0.5% and 4.5%. The newest money here is shortdated, a $3.5 billion senior secured uh facility with a 364day maturity and interest starting at um about 2.75% plus term sofur. They have a one-year bank loan funding, a uh a long live build, which is is good for them. Um so they have really cheap debt. They're they don't have a lot of debt. They have cheap debt. They have great counterparties. Meta and Microsoft are big customers and those are excellent customers. Those are the companies going out and getting more money, crowding out debt markets, and they're going to take that money. They're going to give it to Nebius to power this massive topline growth. Um, they do have big concentration. So, you don't really want to, you know, that is one risk here. So, it's not like, you know, everything is good here and and it's all clear signal. There is some concentration you have to worry about. Uh, their 2026 capacities is sold out. Uh they have a backlog about $46 billion. That was from back in April. We'll get a new backlog number pretty [snorts] soon when they report earning is earnings. Uh they own their power. They own campuses in Finland and the US. They got the Missouri site up to 1.2 gawatts. Uh they're targeting more than 4 gawatts of contracted power. So they have lots of own power and own land. Uh and they have Nvidia as an investor. And then you have Jensen Wong who's out in Europe recently just kind of really talking up the company. Nebas is doing great. Nebius is a superstar. Nebus, Nebius, Nebus, Nebius, like he loves Nebius. So, um, in terms of like the things we're looking for, balance sheet is is pretty strong. Uh, the cost of their debt is pretty low. Their growth profile is pretty attractive. They have great customers with Meta and Microsoft. They own a lot of their power. They own a lot of their land. And they have Nvidia as a backer. So, this looks like one of the companies that definitely can be one of the last men standing in the NeoCloud consolidation, which means the stock could do really, really, really well. Again, if you're one of the last five standing, five or six standing, you get a large piece of the pie. Now, this stock is turning around very attractively here. If you kind of look at the technicals, 150 was a level we needed to hold. We held 150. We're bouncing off and we did lose a 200, but it looks like we're going to retake it. We're getting we're going to get close to a bullish MACD crossover below the zero line here. We're getting a momentum crossover bullish crossover on momentum. So price momentum selling pressure is easing and starting to uh the momentum is shifting the direction getting an oversold RSI bounce. This has all the hallmarks of a stock that is is putting in a big bottom at 150 and ready to come back. So across the board, whether it's, you know, fundamentals or outlook or technicals, Nebius to me is way more attractively positioned here than Coreweave. And this is a name that I would back the truck up on here and now. I said a few weeks ago, very bad timing, that Nebus, Arm, and Marll were my favorite three stocks for for 2027 in terms of AI. That was when Nebus was around 230, 240, and now we're down to 150. but or 170. But I'm saying, hey, it is still despite all the NeoCloud concerns out there, the financing fears out there. It is still one of my favorite stocks of 2027 because I believe it will be one of the last men standing in the Neocloud consolidation, not the Neocloud apocalypse. Big difference. And this company is going to absolutely rip higher. I would not be surprised if this is a $500, $600 stock within six months. I do think it goes crazy from here. >> Yeah. I mean to be fair, you also said to scale in the positions in a in a followup episode there, but you kind of answered my follow-up question. Is which would have been is this the moment to buy or do we kind of wait for, you know, the market to be a little less turbulent, you know, waiting till after midterms, but it seems like this is a sale opportunity if we are, you know, have convict. >> It depends on your risk tolerance. And I mean we can talk about the the broader markets um in a future episode, but let's just talk about Neoclouds right now. >> If I'm looking at the Neoclouds, so like let's just let's just take Nebius. >> I see again a lot of technical indicators here suggesting to me that we have put in a durable bottom at 150 and we're ready to bounce back. Oversold RSI bounce. Pretty much a double bottom in the RSI too. potential bullish MACDI crossover below the zero line and a bullish crossover on momentum flipping higher and we're about to retake the 200 and 150 was a big support line. So all those things suggest to me that hey a bottom is in but at the same time we haven't retaken the 200 day moving average. The 50 did flip below the 100. We have not fully triggered a bullish MACD crossover. RSI has not recovered above the midpoint around 50. >> Um, we're still fundamentally we're still waiting on the hypers scalar earnings. That's going to be big for these ne clouds. We're still waiting for the Fed. That's going to be important in terms of interest rates and debt financing. That's going to impact these guys a lot. We're still waiting on the midterms and we're still waiting around on some, you know, additional clarity on the Iran war, which for whatever reason, rhetoric on both sides seems to have benchmarked around the midterms. So, we're still waiting on a few things and that's why to me it really depends on your risk tolerance. If you are feeling confident about those four things fundamentally, hyperscaler earnings, the Fed midterms, and the Iran war, then yes, the technicals are telling me this is the time to buy. If you're feeling a little bit hesitant about that, then you probably want to wait for some resolution or some clarity. Maybe a good strategy here is nibble a little here before any of those four events. If we clear the Fed and we clear hyperscaler earnings nicely, buy more on a rebound as it continues to rebound as it retakes the 200 day moving average. If we get past the midterms and there are no big shocks there and we continue this rebound rally, buy more. And then if we get some clarity on the Iran war thereafter, [clears throat] excuse me, buy more. So maybe, you know, scale into the dip and also scale into the rebound as confidence rose in the certainty of this rebound. But I am seeing enough here to say this is probably a good time. For someone of my risk tolerance, I'm a bit more tolerant of risk. I'm young. I have a long-term outlook. I believe in this stuff. Uh for someone like me, this is probably a good time to be buying the dip in Nebius. I think it's 150 is a support and we're bouncing nicely and we're getting some good u uh rebound indicators, technical indicators flashing to tell me, hey, I think it's go time. So yeah, that's how I'm looking at Nebus. And I would say that's probably true for a lot of the neoclouds out there, but again, we're not we're not buying the dip in Corewave. We're buying the dip in Nebus. We're buying the dip maybe in a few others, but not Cororeweave. >> Gotcha. Understood. Appreciate the insight there. So, you mentioned power in regard to Nebus there. Uh, in terms of the next stock, we want to talk about iron. It is notably uh one of the the names in the the sector that switched from Bitcoin mining to Neoclouds and given that it has experience in large scale computing facilities and power. So what what's your take on? >> So IN is one that scores really well for us on power. You're right. They have more than 4.5 gawatts of secured grid power on its own land in Texas, the British Columbia, and Oklahoma. So because of those former Bitcoin mining operations, they are doing really well on the owned power owned land scorecard of our kind of neocloud uh criteria. So that's really attractive about Iron in in my opinion. Another place that they're thriving is going to be contracts. Iran I I ran I need less outside money uh per deal than arguably anyone in the group. Microsoft's prepayment plus the cheap loan. It covers about 95% of their GPU related capex. Uh they have newer deals that include customer prepayments representing approximately 45% of the associated GPU capital expenditure. So they have massive prepayments coming in. They have really good contracts. They're getting paid before the delivery of compute. and that is really attractive in terms of, you know, being safe against some of these financing uh fears or financing risks, if you will. Um, their funding costs are pretty low. Like I said, their Microsoft deal is financed with $3.6 billion of GPU financing at an interest rate below 6%. That's that's pretty attractive. The only place where I think these guys are not really knocking out of the ballpark and I'll show you is going to be on just that pure financial profile. Like Nebius knocked out of the ballpark on all the things I just talked about and had a really good financial profile. These guys I don't think have as an attractive. It's still pretty attractive though. You got 6 billion in cash against 8 billion in debt and 11 billion market cap. So the cash debt balance is is pretty nice. But again, debt's really creeping up on that market cap. really really creeping up on that market cap. So that's not all that attractive. Their free cash flow picture is pretty negative. Remember uh Nebius was minus5. These guys are minus 25 - 20. Does improve over time but still some pretty big cash burn uh in the next few years at the very least. Growth profile is very attractive like Nebias. Margin profile is very attractive like Nebus. So, it's really balance sheet weakness here that makes this one a little bit lower quality in my opinion than a than a Nebius. But still, I think it is a high quality pick in the space. I do think that their owned power is a very big advantage for them over like a core. Now, the stock is starting to come back in a bullish way as well. Again talking about do we buy the dip here, do we not buy the dip here like so negatives like coreweave there were some big support levels that we lost. The big support levels here were going to be as I'm kind of drawing them right now 33 30 or 3233 you know we had that 33 bottom in December 25. We had a 32 bottom in March of 26 and then we had a 32 bottom in uh July of 26. We lost that. We have this peak from uh September 25 around $9 and then a $29 and then a big bottom in July the LEO pulled low if you will. July 26 around $29 we lost that. So we've kind of been losing all the technical levels. We got really oversold but now we're recovering. Now the positive things here are going to be we're about to trigger a bullish maxi crossover below the zero line. We got a bullish momentum crossover and this oversold RSI bounce is pretty attractive too. So there are reasons to be constructive on the chart here, but in terms of charts, this one looks more like a core than a Nebius. Nebius is holding up a lot better than IRA. And this one, again, fundamentally, I like it, but I like it when fundamentals and technicals line up together. For me, the fundamentals and technicals are lining up best on Nebus, worst on Coreweave, and Iron is is somewhere in the middle. So, I lean bullish on Iron because of that fundamental work we've done on on the stock, but the technicals are just so weak that I probably want to see this one at least retake 30 before scaling into to buying this dip. >> Gotcha. So, another one that kind of sits in a interesting space is Applied Digital. So, I think we can consider them more of an infrastructure play than a truly a GPU play. So, do they sit in the same kind of area as iron? So yes, I would say where they succeed is going to be on owned power. They own it's the North Dakota and Louisiana campuses. They own the land, they own the power, they own everything around it. So really good on owned power. Uh they're also really good on contracts. They have um all their contracts are 15-year taker pay leases. Core's 11 billion on that. Polaris Forge 2 is 5 billion. Delta Forge 1 7 and a half. Uh, Polaris Forge 3 is 7 and a half, Delta Forge 2 is 5.2. So, they got about $36 billion across roughly 1.4 gawatt. That's more contracted value per dollar market cap than anyone else that we analyzed in the Neocloud space. So, they're crushing it on owned power. They're crushing it on contracts, but where they're kind of lacking is going to be on funding cost. So, their cost of debt's pretty high. They got 9.25% 25% senior secured notes due 2030 issued at 97% of par in November 2025. 9.25 is pretty high. Uh they got a 2.15 billion of 6.75% senior secured notes due 2031. And they got 1.6 billion of 7% senior secured notes due 2031. So Nebius is on the cheaper side of the uh the the cost of their debt. Apply Digital is on on the higher side. So that's a knock against them. And then they don't have a strategic backer, right? Nvidia's invested in Nebius. Nvidia uh is a huge supporter of Coreeave. There's no big backer here for for APLD, right? There's no chipmaker, no hyperscaler. No one owns equity in it. Um Mackery is a financing partner, but not a strategic backer. So, they're kind of on their own. And that you don't this is not a time you want to be on your own. Want to have the backing of one of the big dogs. So APLD scores well on some things fundamentally. It scores poorly on some other things fundamentally. If you look at the balance sheet for APLD, pulling it up right now. Um we're about three billion in cash. Again, $6.5 billion in debt with a market cap of 5.9 billion. So that's not all that attractive, right? When the debt load exceeds the market cap, that that's not all that attractive. The growth profile is attractive. So is the margin expansion profile. All that looks good, but they're throwing off 6.4 billion in negative free cash flow. Minus5 - 6, you know, pretty much minus 5 to minus 7 over the next three years against a cash balance of $3 billion and a market cap of $6 billion. So again, the financial profile here is not all that attractive. And that's why this is not in the Nebius category. It's not in the core category. I would say if we're kind of ranking these Nebius iron APLD coreweave that would be kind of my power rankings for them fundamentally speaking. And then if you look at the chart on APLD, you know, is it ready to turn? Is it ready for a bounce, this is one that kind of slots in that coreweave I camp, which makes Nebius, if you kind of go through all the Neocloud stocks that have been around for a while, um, a lot of them look like Corewave and Iron and ALD, where there were these major support levels here. Obviously, the major support level was going to be $20 and we lost that, right? That was the big low from March of 2026. And then before that, we kind of had some big lows right around 23, 22, uh, 25. So that kind of low 20s levels. Lot of support between 20 and 25. And we just knife through all of it. Just cut through all of it. So that's how a lot of the charts look. If you looked at core wave, looked like that. We looked at IR looked like that. APLD looks like that. Nebas doesn't. And again, this is another vote of confidence in in Nebas that it's the one chart in the Neocloud space that's holding major support levels and looks like it's ready to bounce and is ready to retake the 200 day moving average. Look at this one. The 200 day is up at $32. We're at 20. We're a whole $10 below the 200 day. Where was Nebas? Like 50 cents below its 200 day, right? So again, Nebius has been holding up a lot better than a lot of the Neo Cloud names. And that's why I really like it or one of the reasons I really like it. But APLD, if this stock can retake 20 and turn 20 back into support, then it's probably a bounce you want to scale into. But until it does that, I think you just got to really load up on Nebius and then maybe spread out to these other NEO clouds if and when their charts improve in a manner consistent with strengthening fundamentals. So that's where I am on APLD. So, my power rankings again, it's going to go Nebius by far and away number one and then I ren and APLD right behind that and then Coreweave way down below. That's kind of how I'm looking at it right now. And that and then I think if you look at the other ones like Sefur and Wolf, they kind of slot somewhere between Core and a and APLB. I think they're kind of on the lower side of quality. Um, and that's how we're looking at the space right I think there are massive opportunities here, but you have to be highly selective. And right now, the only stock that's getting me excited both fundamentally and technically today, October 27th, 2026, is going to be Nebius, but that one's getting me really, really excited. I think that is a big time long-term winner trading at a massive short-term discount. >> Gotcha. So, if we expect uh consolidation going forward in the Neocloud space, could that potentially make us bullish on a company like Iron or APLD where they have the infrastructure and if they were to be, you know, packaged into like an M&A deal, would that would we be bullish on them in that regard or is it better? >> Absolutely. Yes. I think there there are reasons to be bullish on a lot of these stocks long term, but there is so much uncertainty out there right now in terms of what happens next with the Neocloud space and sentiment is a massive driver of price action. To your point, the fundamentals on these stocks have not really deteriorated in the last few months and yet I was a $50 stock or not Iron APL that we got pulled up was a $50 stock that's now 20. So like sentiment can drive 60% corrections in stocks, right? So you got to respect the sentiment. And right now what I'm saying is there is there is so much negative sentiment built up against Neoclouds and so much uncertainty in terms of AI financing and also you know we have these big hurdles like I said with hyperscaler earnings and the Fed and midterms and the Iran war that when you add all that up I don't have enough clarity on the picture going forward for a lot of these names to say all right yeah this is a great time to buy APLD that clarity could improve in the next few weeks and all of a sudden you do start to see the opportunity there. But right now, the only stock in the Neocloud space that I have sufficient clarity to pound the table on as a dip buying opportunity is going to be Nebius. For the rest of them, I think there are some dip buying opportunities in there, but I don't have enough clarity to say which ones quite yet. We need more information. We need the market to sit with this stuff a little bit more and then we can decipher which ones are going to be long-term winners and which ones are going to end up in the graveyard. >> 100%. Okay. Uh I mean I think that's a great place to end this episode. Uh do you have any additional closing remarks there? that that kind of encapsulated. >> No, I mean, I just can't wait for uh our episode later this week because there's so much that is going to happen between now and next Tuesday, Wednesday, right? The hyperscaler earnings, Microsoft, Amazon, and Alphabet, that's big. I mean, Meta reported last week and SpaceX reported last week, but those are the two smallest spenders in the stack. Microsoft, Alphabet and Amazon are the biggest spenders. What are they going to say about 2027 and 2028 capex trends? What are they going to say about financing? Are they going to the debt markets? Are they going to the equity markets? Do they feel sufficiently capitalized? Uh what are they going to say about demand? What are they going to say about the cloud growth rates? About the cloud backlogs, about enterprise adoption of some of their tools. Microsoft will talk about that. Um these are very important things. I that's going to determine a lot of what happens in the next few months in the market. uh the Fed on Wednesday, they're probably going to hold rates steady, but we still have to see what Wars says. Midterms, everyone's jittery about that. We got to get through that. And then, like I said, for some reason, the rhetoric on both sides is centered on um some rand additional clarity around the midterms. I don't know why, but that's just kind of what has happened. So, the next week is going to be arguably the most important week for the market of 2026 so far and probably well by December 31st be the most important week of the year. And it's make or break time. If we clear these hurdles, we're going to have a fantastic freaking rally in November and December going into 2027. And if we don't clear these hurdles, it could be a really painful November and December. So, really important time. We're sitting at some very critical technical support levels across all the charts and now it's time to see are we going to make or are we going to break. My money is on make and I think we are definitely going to make it in a big way. But I can't wait to talk about all of it after we get through those hurdles and then we can assess okay what is November going to look like and what is what's December going to look like. So really excited for the next week. I think it's going to be a really really really important seven-day stretch here. >> Yep. Got it. Likewise, Luke. And to that effect, uh, so typically we come out with episodes Tuesdays and Fridays, but given, you know, the turbulence of the market, they might change. So, please, you know, comment, subscribe, like, just stay engaged with the channel. We are going to [music] come out with information, you know, as soon as we have it. Um, but with that, we thank you for tuning in. We've certainly enjoyed recording. Take care. >> [music] [music]