cliffordthebigreddog

[The Kobeissi Letter @KobeissiLetter]

The AI trade is diverging sharply:

The 30-day correlation between the largest US CapEx spenders and the semiconductor index, $SOX, is down to almost zero, near the lowest in at least 4.5 years.

This marks a sharp decline from the +0.78 positive correlation seen in April.

By comparison, the average correlation coefficient has been +0.60 since the start of 2022.

The divergence comes as semiconductor stocks have rallied while the largest AI infrastructure spenders have declined, and vice versa, since the beginning of June.

This tells us that investors are no longer treating AI infrastructure builders and chipmakers as one trade, as chipmakers benefit from AI demand while hyperscalers face questions over whether massive spending will generate sufficient returns.

The next phase of the AI trade will be defined by profitability, not investment.

[cliffordthebigreddog @Swimmer8623]

@jbulltard1 Rivian makes better cars. If they can actually scale production by Q1 2027 for their mid-line vehicle, then Tesla will be in real trouble in the American market, imo.

[cliffordthebigreddog @Swimmer8623]

@RepThomasMassie The boomer generation is the Achilles Heel of this country

[cliffordthebigreddog @Swimmer8623]

@Osint613 @crypto_condom False flag is obvi

[cliffordthebigreddog @Swimmer8623]

@olliecarroll jfc. What you doing Zelensky.

[cliffordthebigreddog @Swimmer8623]

@bartmeier23 @KobeissiLetter Isn’t Trump in the Epstein files you retard?

[cliffordthebigreddog @Swimmer8623]

@DeepValueBagger Damn. My main account is only a few multiples greater than this. Don't spend your 20s and early 30s just drinking kids. Even if you make high six figures, it takes all your money. Thankfully sober for over a year now

[cliffordthebigreddog @Swimmer8623]

@SharkChart The dumbest person in the federal government just got elevated to one of the most important roles.

[cliffordthebigreddog @Swimmer8623]

@DeepValueBagger Always one step forward two steps back with Zuck. Goddamn.

[Paradis Labs @ParadisLabs]

SaaS is alive.

$NOW +23% since my post last week.

AI is not replacing these names:
- $PLTR
- $MSFT
- $NOW
- $SHOP
- $DDOG
- $CRM
- $SNOW
- $APP
- $MDB
- $ZETA - @amitisinvesting Basis Points pod w/ CEO convinced me of this. (No position)

Many of these companies are so entrenched in massive enterprises that the switching costs/risks are way too high.

No credible CTO will risk offboarding a $NOW for a stitched together "AI" replacement.

I believe that the more that SaaS companies utilise AI themselves, the greater their margin expansion will be:

- Cost savings by reducing employee headcount bloat.
- Revenue increases by integrating AI into their solutions e.g. Zeta/ServiceNow.

Disclosure: I took positions in ServiceNow 22 mins after my original tweet lol. Plan is to build out on dips for a long term compounding position (hopefully).

[cliffordthebigreddog @Swimmer8623]

@MikePLTR It feels inevitable. Tempted to take some minor profits and wait to reenter but my brain says it won't. The worst!