Latent Capital

Open equity research and market hot takes

Not financial or investment advice

[Latent Capital @Latent__Capital]

@nikitabier

[Latent Capital @Latent__Capital]

@amitisinvesting Yes

[Latent Capital @Latent__Capital]

@citrini

[Latent Capital @Latent__Capital]

I'm a good long term investor, i don't panic over short term market volatility.
I'm a good long term investor, i don't panic over short term market volatility.
I'm a good long term investor, i don't panic over short term market volatility.

Is it over yet?

[Latent Capital @Latent__Capital]

@KobeissiLetter Me showing I'm a confident long term investor, not panicking over short term noise

[Latent Capital @Latent__Capital]

@TheEquityHub Nice chart!

[Latent Capital @Latent__Capital]

@TheEquityHub Well the backlogs suggest they can. But i don't know how firm and diversified are these backlog commitments

[Latent Capital @Latent__Capital]

100% on api integration, and they can charge a fee for external agents.
But i don't understand how you serve ads through ai agents. Creates an agent misalignment problem which is a problem if you are both the commerce platform and supplying the agent.

Perhaps they collect a fee from merxhants to be featured on the agentic api? But that deteriorates the user experience if not all options are available..

Not sure how they're going to solve this one

[Latent Capital @Latent__Capital]

@MapleLeafWealth Going to buy the dip

[Latent Capital @Latent__Capital]

@FindleysFinance I don't buy it.
Alexa shopping agent as a primary channel?
Analysts Should.have pushed more on this.

Anyway it is a diversified business and AWS is awesome

[Latent Capital @Latent__Capital]

@Geiger_Capital Looking at my brokerage account this morning

[Latent Capital @Latent__Capital]

@Geiger_Capital Amazing that the value hasn't crashed more from here
How do people keep seeing this hackable stealable puece of speculative code, as a store of value??
$BTC

[Latent Capital @Latent__Capital]

@oguzerkan True and many people may have noticed google is now automatically routing less queries to ai search

[Latent Capital @Latent__Capital]

@LanceRoberts The story isnt operating margin in isolation.
But how capex is eating it all with appetite for more.

[Latent Capital @Latent__Capital]

This is why Tech is down

We got to the capex point of no return. Big tech are growing capex share of revenue and it is now eating up more than their operating cashflows.

$AMZN - capex 179% of operating cashflow
$GOOG - capex 121% of operating cashflow
$META - capex 104% of operating cashflow
$MSFT - trailing the group with a modest 68% of operating cashflow

These companies signal they believe the capex spend is justified and will continue this trend, eliminating their fcf and increasing debt and dilution

However future returns on this capex are not certain, and the steady state market dynamics of the AI/SI era are still unknown.

We are in a capex race to the bottom.

how are you positioning your portfolio?

[Latent Capital @Latent__Capital]

@StockSavvyShay @Fiscal_ai Meanwhile the stock:

[Latent Capital @Latent__Capital]

@3mJamal I one tried to set my money on fire, but investing in $OPEN seems more efficient

[Latent Capital @Latent__Capital]

True but their ad business seems to be much more fragile for ai disruption.
Not sure how long they can keep the doors locked for personal agents who will love to go through all the listings and just help the user find the best deal.

I don't know how they will serve ads in a ai comerce world

[Latent Capital @Latent__Capital]

@Fiscal_ai Easy question
$IBKR has better margins, richer client base, and is cheaper
$HOOD is overvalued because most of their broke clients didn't figure out $IBKR exists yet.

[Latent Capital @Latent__Capital]

This Pre-tax income beast is reporting earnings today at market close.
It's still growing strong at almost 50 years of age.
The valuation isn't cheap, but it is much cheaper than the hyped up competitor everyone is talking about.
This is $IBKR
🧵