The AI Stock That Could Go to $0

One of the biggest AI stocks in the market is already dead. Its stock is going to zero. Coreweave borrows billions at 15% interest. That's not some clever math or some short sellers estimate. It is printed in black and white in their own SEC filings. 12% on a second facility, 11 on a third. Folks, these are payday loan rates. So ask yourself this, what kind of business borrows money at 15%. Not a good one. Good companies borrow at five. The United States government borrows at four. 15% is what you pay when the people lending you the money have looked at your balance sheet and concluded that there is a real chance they don't get it back. And the return that Cororeweave earns and all that borrowed money of 1%. They borrow at 15, they earn less than nothing. And they do it again at a bigger scale the next quarter. Now, I have spent the last several days dissecting these filings, and I be careful with what I'm claiming because I'm not about to tell you that artificial intelligence is a hoax. It is not. The technology is real, and the demand is real. What I'm going to tell you is worse than that. I'm going to show you five AI companies that are almost guaranteed to fail. I'll show you the model they're copying, the one used by their big tech predecessors in 1999 before the dot bubble wiped them out. same business model, same financing, and in one case, almost the same interest rate. And in the very end, I'm going to give you a single number from a company that won that I think will permanently change how you look at every AI stock you make sure to subscribe to the channel because this is what I started to do, show you how the market actually works and both make you money as well as protect yours. So, let's go ahead and get into it. And I want to go back to March 2000 as the peak of the dot boom. And there was a company called Exodus Communications. Exodus went public in 1998. Their business building data centers and renting them to the hottest technology companies in America. That's it. The whole company. Racks, power, cooling, bandwidth. They owned the buildings the internet ran on and it worked. Exodus grew 40% a quarter for 13 consecutive quarters. Revenue went from $242 million in 1999 to 818 million in 2000. and they were signing the biggest names on the internet to three and five-year contracts. At the peak, the market said Exodus Communications was worth $32 billion. He'd for it all with high yield debt. Fixed payments locked in for years. Because when your revenue is compounding at 40% a quarter, borrowing feels free no matter the interest rate. In September of 2000, Exodus agreed to buy a competitor called Global Center for $6.5 billion in Exodus stock. And by the time that deal closed in January, 4 months later, the stock they were paying with was worth a fraction of that. 70% of the purchase price evaporated in the middle of the transaction. And 18 months after the peak, Exodus Communications filed for bankruptcy. It was bought by Cable and Wireless out of bankruptcy. 30 data centers, 4 million square feet, 3500 customers, and they bought it for $575 million. Less than 2% of the company's value the year before, 98% of the value gone. And folks, those buildings were still standing. The fiber still worked. The racks were still full of server. Cable and wireless kept all 30 facilities running. Nothing was wrong with the asset, but everything was wrong with the way it was paid for. And Exodus was not run by idiots. Neither was Global Crossing or PSET or Williams or Exo or 360 Networks. These were serious companies with serious engineers building infrastructure that we still use today. So why did every single one of them fail inside of the same 24 months? Because they were all drinking from the same well. Somebody turned it over. This was the Achilles heel. It is the same thing happening today. The companies selling the equipment were also lending the money to buy it. Lucent Technology, they lent roughly $8 billion to its own customers so that those customers could turn around and purchase Lucen switches. Then Lucent booked those loans as revenue on its own income statement. Nortell did the same thing and got more aggressive, lent up to 135% of the equipment's cost, often unsecured. more money than the gear was even worth. And by the year 2000, at the end of that year, McKenzie counted about 25 billion dollars of this across nine equipment maker. So a large portion of demand, it's going to be the same way today. A large portion of the demand for this telecom equipment in 1999 was being created by the people selling the equipment. And then came March of 2000. One of Lucen's customers was a company called Winstar Communications. And Lucen had already lent WinStar more than $700 million. Winstar came back for another 90 million and Lucen said no 18 days. A $6.3 billion company with a real network with real customers went from operating to chapter 11 in less than 3 weeks because one supplier declined a check. And this is the single most important fact in this entire video. So I want to say it as plainly and as clearly as I can. The demand did not weaken. The demand was never there. It had been manufactured, funded, and booked as revenue by the seller the entire time. And the moment the lending stopped, demand didn't decline, it ceased. Now, let me show you the companies doing the exact same thing this time around. And by the way, if you like this kind of content and you want the trades I'm actually taking, not just those I'm avoiding, be sure to sign up for my Black Ops trading membership for just $5. You get an entire year of access live oneh hour mentoring sessions with me every Monday. We'll look at your stocks, mine, the market, go through everything. My weekly newsletter, indicators, bonus reports, access to my support team, tons of stuff. Easy to sign up, just five bucks, no strings. Click the link in description, scan the QR code in the corner, or just go to tradewithrosts.com to get signed up. Now, I'm going to show you five stocks, and these perfectly align with the ones that went bust back in 2000. So, Nvidia is today's version of Lucent. Nvidia holds $30 billion of equity at OpenAI, 10 billion committed to Anthropic, 2 billion in Coreavee, and an agreement, it's right there in the 8K, obligating Nvidia to purchase Coreweave's unsold capacity through April of 2032. So, in other words, if Coree can't rent the chips out, Nvidia has agreed to rent them itself. And that is not a customer relationship. That is a seller underwriting its own demand. the precise thing that Lucent did 25 years earlier. The same thing that destroyed $250 billion of shareholder value, an amount equivalent to 2% of America's GDP at the time. Lucen went from $41 a share to under a dollar in 30 months. Same business right down to the square footage. Data centers rented to the hottest technology companies in America. Built with expensive debt against multi-year contracts. $2 billion of debt principle. 11.7 billion of it comes due by the end of the year against $2.2 billion of they burned $4.7 billion of free cash flow in a single quarter. And their own filing states that their financial controls are, and I quote, not effective more than a year after going public. Exodus had better growth. They didn't save them. Apply Digital and Galaxy Digital, those are today's equivalent of WinStar. WinStar existed because Lucid financed it. These two exist because Cororeweave rented from them. 11 billion of Applied Digital's $16 billion backlog is all Coreweave. 100%. Every square foot of Galaxy's new campus is Coreweave. Galaxy borrowed $3.5 billion at 9.9% interest to build it. So, $346 million of cash in interest a year from one tenant. They don't own data center. They own a claim on Corweave's ability pay rent. And WinStar showed us exactly how fast that kind of claim can be worth. Then there's Terra Wolf, which is the modern equivalent of Williams communication. Williams built $33,000 miles of fiber against $7 billion of debt and $500 million a year of interest the business never once generated. It went from over $40 a share to trading in pennies in 22 months. Terwolf last quarter $44.8 million of revenue with $56 million of interest expense. They paid their lenders more than the entire company took in. And the $19 billion anthropic contract that everybody points to doesn't even start paying until late 2027. And then there's Fermy, a near direct copy of Global Crossing, which went bankrupt 3 years after its IPO. See, Global Crossing reached a $47 billion valuation without ever earning a profit. Not one in its entire existence. Fermy went public last October. The market says it's worth $4 billion. revenue zero, not small, zero. Binding customer agreements, also zero. They have $27 million in a bank and somehow spent $441 million on construction in a single quarter. Yet, eight Wall Street analysts cover Fermy and all eight rate it as a buy. Here's the thing people get wrong every single cycle. None of these companies died because demand disappeared. Exodus's data centers were full when it filed. Williams Fiber is carrying traffic. PSIET's network worked perfectly on the day it went bankrupt. They died because the refinancing window closed. That's it. Debt comes due, you got to roll it. And the same market that happily handed you $2 billion last year says no. There's no warning shot. There's no bad quarter first. You're just standing there with a payment you can't make on an asset you can't sell fast enough. And about that asset, I want to kill the most comforting lie in its entire sector because people love to say, "Well, at least there's real hardware behind it." PSE borrowed $3.7 billion to build this network back in the '90s. It was a massive amount of money back then. Then Cooji Communications bought an entire United States business out of bankruptcy. The customers, the backbone, the equipment, the IP, all of it for $10 million. 3.7 billion in, 10 million out. Bond holders recovered about a quarter of a penny on the dollar. Across the whole telecom bust, bond holders got back roughly 20 cents on the dollar and more than 95% of the fiber that got laid was never even lit up. By 2002, the industry was using just 2.7% of the capacity it had built. And when everybody in a sector is liquidating at the same moment, the only buyer left is a vulture. And a vulture sets the price. So there is no such thing as at least there's hard assets behind it. And look, you might be telling yourself 1999 was a one-off. It was a fever. Uh it was a madness that broke. It wasn't. This boom and bust cycle has taken place over and over again since the dawn of public markets. Nothing ever changes on Wall Street. Only the ticker symbols. And some of you are going to push back on me. I welcome it. Listen, it's a smart objection. And you're not all wrong. There will be a winner in this. In the.com bust, Level Three Communications was the last man standing in the telecom wars. They survived every bankruptcy in his video and they eventually bought Global Crossing outright. Their fiber is still carrying traffic today under the name Lumen. And if you had been sitting in 1999 trying to pick the one company that would still be alive 25 years later, that was it. Level three. That was the correct answer. Level three stock closed 1999 at $81 a share. A year later it was trading for 32. Two years later it was at five. By 2008 the stock was at 70. So the winner went down 99%. 11 years later it still hadn't recovered and it needed a 1 for15 reverse split just to stay listed on the exchange. So here's the only conclusion I can draw from any of this. Being right about the technology has never, not one time in a hundred years protected anybody from the capital structure. We are being sold on artificial intelligence. But what you're actually holding is a bet on whether a handful of companies can refinance tens of billions of dollars of expensive debt in a market that is already charging Coreweave 15%. And those are two completely different bets. Now look, I'm not trying to scare everybody. I'm not saying the market is going to crash tomorrow. The music is still playing. These stocks could stay up or even go higher for several more years. But the people who lend money have started walking toward the exit. And in every single one of these stories, they were the ones who moved first. That's the signal. It's not the stock. It's not the technology. It is the debt. It is the capital structure. And look, you don't need a finance degree for this one. You need fourth grade math. You borrow at 15%. The thing you buy with it earns you less than nothing. So, you borrow again to cover the gap and again to cover that one. And you don't get a vote in how this ends. The people who decide are sitting in a credit committee somewhere looking at a spreadsheet and they're not asking whether AI changes the world. They already know it does. They're asking one question. Do I get my money back? And the day the answer is probably not. They don't sell. They don't borrow. They don't warn anybody. They just stop lending. There's no announcement. There's no series of bad quarters. The window closes and the company on the other side of it finds out the same way you do. Lucent said no to WinStar. 18 days later it was over. That's how Exodus went. That's how Global Crossing went. That's how every single one of them went. The technology was never the question. The refinancing was. They moved first in 1929. They moved first in 2000. They moved first in 2007. And folks, they are starting to move right. Don't forget to subscribe to the channel and again, don't forget to join my Black Ops trading service. Five bucks whole year. We'll break this down and talk in dis in uh more detail. I'll show you how to find winning stocks. the entry patterns, what to look for with exits. We'll review your names. Nothing's off limits. I promise in an hour a week for an entire year, I can take you miles ahead of where you are now. And it is just five bucks, no strings. Click the link in description, scan the QR code, or just go to tradewithro.com to get signed up. and I'll see you in the next