Meta Platforms Stock (META)

It looks like Broadcom ($AVGO) is already back for another fix. It really makes me wonder how there is enough savings in the world to do this, although the Treasury market is telling you there isn’t: Broadcom CDS Explodes As It Seeks Up To $100 Billion In Massive Off-Balance Sheet Debt Deal At any rate, …

The following is quite an exposition of some of the trickiest financing, ratings sleight of hand, and hidden leverage and exposure I have ever seen. You must read it. It is, in my mind, undecipherable…unforecastable although I do think that technological obsolescence is a clearly present and un-sizable risk – to both the debt holders and META …

* I continue to call B.S. to the anticipated projections for productivity enhancement, the largely positive expectations for marginal aggregate economic growth/activity from AI and to the unrealistic forecasts for return on invested capital of the AI capital spending spree… * If the dreams of AI (job) cost saves are realized, how is the U.S. economy …

Microsoft ($MSFT) was a pleasant surprise with growth at Azure accelerating. Mets ($META) not so much. We remain long $MSFT, Amazon ($AMZN) and Alphabet ($GOOGL) in the Mag 7. More later… Position: Long MSFT (S), AMZN (S), GOOGL (S)

Am I the only one that finds it ironic that Anthropic and OpenAI are whining about the Chinese stealing their IP and then massively undercutting them on price, when they themselves have stolen everything to train their models? And this (as mentioned previously) …. Alphabet’s ($GOOGL) free cash flow is negative for first time ever, …