MikeFBaylis

GTM B2G & B2B

[sysls @systematicls]

https://t.co/FQe5bCBqW1

[AI Edge @aiedge_]

https://t.co/HXDLgTCrhe

[AI Edge @aiedge_]

https://t.co/Bm5I1A3Mjt

[MikeFBaylis @MikeFB85]

https://t.co/pdrtBGaFDv

[Rihard Jarc @RihardJarc]

The zero-interest rate era has, in many cases, changed the mindset of stock investors for the worse. For years, Big Tech companies didn't know what to do with their accumulated earnings and have stockpiled their balance sheets with cash or/and initiated big buyback programs and dividends.

The reason a company pays a dividend or does a buyback is that it signals that internally, they don't see any projects worth the ROI to invest in, and instead choose to return capital to shareholders.

While these periods in the short-term might be enticing for many investor they signal lower growth potential over a longer period of time.

But now we are finally in a period where Big Tech companies are investing large amounts in CapEx, which, in turn, reduces or even lowers their FCF to zero, as they are signaling with their actions and words that they see big investment opportunities (future growth).

A rational investor would be excited about such times, as it signals accelerating long-term growth for these companies, but on the market, the opposite is happening.

IMO, there are two reasons for this. One is the irrational reaction that has become ingrained in many investors' minds over the past years, as they have become accustomed to Big Tech doing massive buybacks and dividends, giving them a sense of less change and more predictable short-term results, even if it is at the expense of higher long-term growth.

The second reason, which is a rational one in essence, is that a long-term investor would not like such an act if they believe these investments won't yield good returns.

I believe both reasons have taken over the sentiment in the market, and while I can't rationally relate to the first reason, when it comes to the second reason of fearing what the ROI will be on these CapEx, I believe investors are overly concerned.

These companies are already showing us that their "2023 AI CapEx" investments are turning into really good ROIs. You can look at the accelerating revenue of $META or $GOOGL's GCP margin, which jumped to 30% from 17% despite AI workloads being the biggest driver of growth.

On top of that, almost anyone who has seriously used this new technology in any field has at some point been amazed by its effects. In one sense, the market expects SaaS to die as everyone vibecodes and uses live-generated SaaS tools. At the same time, the market also believes the investments needed to generate these tokens for this usage are unnecessary and will result in poor ROI.

For a long-term investor, this sentiment, on top of the period of accelerating growth and efficiency that will come from this new technology, is a gift, not a curse.

The investors able to adapt to this new shift in mindset away from the ZIRP thinking will be the ones who will benefit the most.

[Gavin Baker @GavinSBaker]

https://t.co/9hEkzNXlFM

[Brian LaManna @BrianLaManna_]

Software stocks just got crushed. $400B wiped out in a week.

All my thoughts on AI replacing SaaS, which companies are most at risk, and how we will know the winners/losers in 1-2 quarters.

[DAN KOE @thedankoe]

https://t.co/7l7Jef99QZ

[MikeFBaylis @MikeFB85]

Your mind is the operating system for reality.
That system is composed of goals.
For most people, those goals are assigned to them. Programmed like lines of code in your psyche.
Go to school. Get the job. Get offended. Play victim. Retire at 65.
A known path that doesn’t work.
To become more intelligent, you must:
Reject the known path
Dive into the unknown
Set new, higher goals to expand your mind
Embrace the chaos and allow for growth
Study the generalized principles of nature
Become a deep generalist

[MikeFBaylis @MikeFB85]

Trust only movement. Life happens at the level of events, not of words. Trust movement. – Alfred Adler

[MikeFBaylis @MikeFB85]

Self-sufficiency is the refusal to outsource your judgment, learning, and agency. If self-education is the engine and self-interest is the compass, self-sufficiency is the foundation that prevents your life direction from being hijacked by another force. They collaborate, but are not fully dependent.

[DAN KOE @thedankoe]

Your life is determined by the amount of uncertainty you're willing to embrace.

[MikeFBaylis @MikeFB85]

@RihardJarc is your site down? Trying to read it now.

[Andrej Karpathy @karpathy]

https://t.co/Lb6T42n5jl

[Mike Investing @MrMikeInvesting]

I AM FINISHING THE DECEMBER $100 TO $100,000 ACCOUNT CHALLENGE THIS WEEK!! ☢️

I TURNED $100 INTO $112,000+ IN 26 DAYS LAST MONTH; MILLIONAIRES WERE MADE SIMPLY BY FOLLOWING ME.

LIKE THIS POST AND ILL ADD YOU TO MY FREE GROUP WHERE I POST ALL OF MY TRADES THAT I TAKE!! ❤️
$SPY

[MikeFBaylis @MikeFB85]

@_masterinvestor Tesla, Nvidia, Google, Amazon, Microsoft, Apple, QQQM, S&P 500, and chill. watchlist - LLY, PLTR, Meta, NFLX, and V.

[Mindset Machine  @mindsetmachine]

You need to understand this…

[Gene Munster @munster_gene]

When a company accelerates revenue growth despite the law of large numbers, it signals something bigger is going on.

$NVDA now guides year-over-year revenue growth of 65.3% for January, up from 62.5% in October.

Whats going on? We're even earlier than most realize in the AI buildout.

[MikeFBaylis @MikeFB85]

@edels0n Google is just getting started.

[MikeFBaylis @MikeFB85]

@JoshuaKushner Positive spin: These people bring independent thinking, challenge groupthink, and might spot opportunities others miss
Negative spin: They might be difficult to manage, ignore consensus for bad reasons, or make unnecessarily risky choices