Trading Together. Before SpaceX went public, the prevailing theory seemed straightforward: investors would sell Tesla to buy SpaceX. It sounded perfectly reasonable. But since last Thursday, the two stocks have moved almost in lockstep. Up together. Down together. Back up together. Rather than competing for investor dollars, the market has been treating SpaceX and Tesla as if they’re on the same team. Here is the story. ⇩ SPONSOR BREAK presented by BrownstoneResearch* Forget SpaceX, Elon’s M.A.G.I. Could Be Bigger While everyone was distracted with the recent SpaceX IPO… Elon...

Trading Together. Before SpaceX went public, the prevailing theory seemed straightforward: investors would sell Tesla to buy SpaceX. It sounded perfectly reasonable. But since last Thursday, the two stocks have moved almost in lockstep. Up together. Down together. Back up together. Rather than competing for investor dollars, the market has been treating SpaceX and Tesla as if they’re on the same team. Here is the story. ⇩ SPONSOR BREAK presented by BrownstoneResearch* Forget SpaceX, Elon’s M.A.G.I. Could Be Bigger While everyone was distracted with the recent SpaceX IPO… Elon...

Swimming In Cash… If you looked only at corporate profits, you’d think the economy has rarely been healthier. Corporate America earned $4.42 trillion in annualized profits during the first quarter—the second-highest figure ever recorded. → Profit margins are near record highs. → Companies are keeping more of every dollar they sell than they have in decades. By almost every historical measure, business has never been this good. Yet one of Wall Street’s most influential bankers isn’t celebrating. Jamie Dimon says he’s worried. Not about today’s economy. About...

The Ratio… There is a number that Warren Buffett himself called “probably the best single measure of where valuations stand at any given moment.” It carries his name because of one magazine article he co-wrote 25 years ago. Right now, that the “Buffett Indicator” is sitting at the highest level it has ever recorded. Here is exactly what it is, how it works, and why it is called what it is called. ⇩ SPONSOR BREAK presented by MarketWise* “Biggest Breakthrough in the History of Stock Trading” A Maryland computer whiz recently created a new form of...

Less dependence on Nvidia… Building the world’s smartest AI used to be the finish line. Today, it’s just the admission ticket. Once you’ve built the model, you still need chips to run it, data centers to power it, cloud providers to host it, and—more recently—regulators willing to let you release it. This week, OpenAI was reminded of all four. Here is the story. ⇩ SPONSOR BREAK presented by MarketWise* “Biggest Breakthrough in the History of Stock Trading” A Maryland computer whiz recently created a new form of “Predictive AI” that can foresee...

What Are They Seeing? Everyone wants to find the next great AI stock. Wall Street has spent the past year chasing chipmakers, AI software companies, and anything remotely connected to artificial intelligence. Some stocks have doubled. Others have tripled. A few have gone completely vertical. Amazon? Not so much. However, some of the world’s most successful investors have been buying it. The core story today — the billionaire convergence on Amazon and… What are they seeing? Here is the story. ⇩ SPONSOR BREAK presented by MarketWise* “Biggest Breakthrough in the History of...

Reddit Ordered A Combo Meal 🍔 A burger chain with falling sales became one of the hottest trades in America on Wednesday. Wendy’s shares jumped 30.86%. By 9am, more dollars had traded in Wendy’s than in Microsoft, Apple, Amazon, Meta, or Palantir. For a company worth only a tiny fraction of those tech giants, that’s an extraordinary amount of investor interest. At first glance, it looks like another meme-stock frenzy. But this one is a little different. Behind the Reddit excitement is a legitimate turnaround story involving new leadership, an activist investor, and a business...

What actually happened…  Today looked like panic but it was actually a lesson. → South Korea’s stock market suffered one of its worst days in years. → AI-linked chip stocks plunged. → Micron fell more than 13% just one day before earnings. → SpaceX briefly traded below its IPO debut price. At first glance, these seem like separate stories. They aren’t. And the common thread was leverage. It was too many investors piled into the same trade, with too few buyers available when everyone headed for the exit. Here is the story. ⇩ SPONSOR BREAK presented by MarketWise* The Billionaire...

Three straight down days. That is what everyone saw. → Wednesday: -5%.→ Thursday: -3.6%.→ Markets closed Friday for Juneteenth.→ Monday: -16.4%. SpaceX closed at $154.60 — its biggest one-day decline since going public and a sharp reversal from last week’s peak near $225. The company confirmed its first-ever bond sale Monday morning. Many investors immediately pointed to the debt offering as the reason for the selloff. But the bond is only part of the story. The bigger story is what happens next. More specifically: who gets to sell, when they get to sell, and how many shares could...

Before we start — Happy Father’s Day! SpaceX went public exactly seven days ago. Wall Street still cannot agree on what it’s worth and the spread just got wider. Plus: the $60 billion deal Microsoft passed on. Here is the story. ⇩ SPONSOR BREAK presented by MarketWise* Why SpaceX Just Triggered the End of the Bull Market SpaceX insiders are getting ready to dump as much as $1.6 trillion in paper wealth – the biggest cashout in market history. The same thing happened in 1999 right before the dot-com crash… and now, it’s happening again. To see where to move your...

Day Two Two red days. That is what everybody saw. SpaceX fell another 3.56% Thursday, extending its first pullback since going public. The stock closed at $185 after falling as much as 10% intraday. What fewer people noticed was everything happening underneath the stock. SpaceX is preparing a $20 billion investment-grade bond deal. Analysts published targets ranging from $63 to $401. Nasdaq 100 inclusion moved one step closer. And investors were once again debating whether Elon Musk is building the next great industrial company — or the most expensive stock on Earth. The stock fell. The...