My NEW Top 3 Stocks to Buy Now‼️

0:00 Oh, do we love flipping those flapjacks. We flip them just perfect, don't we, ladies and gentlemen. Okay, let's talk. Got a few subjects to get into in this video here today. Appreciate everybody joining me as always. Okay, so uh right off the bat, I want to talk about public count. I want to talk about what I'm up to here. Some moves I'm looking to make. Um some positions, position sizing. Want to talk about that. Uh by the way, great day out there. Up six figures. Six figures today in the public account.

0:26 Absolute banger. Hope you guys are making a whole lot of money out there. I hope your portfolio is at all-time highs or at least very close to all-time highs. I hope that is most of you guys out there. Okay, after we get done going through that, I want to react to this video. The reason I want to react to this video is a lot of people have been wanting me to talk about SpaceX. And I thought this would be a great opportunity for me to talk about SpaceX.

0:46 Am I interested in this stock? If I'm not interested in the stock right now, when would I be interested in the stock? Is it never? Is it 6 months from now, a year from now? And I thought this was a great opportunity. This video went pretty much viral, I would say, on YouTube. This video got over 400,000 views in the stock market space. That's a lot. Jim Chenos, uh, famous short seller, I don't think he ever made money shorting Tesla, although I'm not 100% sure, but I mean, I think he probably got brutalized on that one over time.

1:16 He's speaking very negatively here about SpaceX in the IPO market, kind of what it means for the cycle of the market, things like that. So, I thought this would be a great video for me to react to, share my opinion, perspectives. Okay, after we get done going through that, I want to go through my top three best stocks to buy in the entire stock market right now. We're going to discuss that in this video here today. And then after we get done going through that, the fourth thing we're going to go into is Mike Wilson went on Bloomberg in the past 24 hours and spoke about his views on where the market's headed from here and all those sorts of things. One thing, one thing, all I need from you guys, if you haven't already done so, just smash that like button for me.

1:51 Little thumbs up icon, make it glow. Even if you're watching this on your TV, please make that little thumbs up button glow. I think you can do it on your TV, right? I appreciate y'all for joining me. As always, also let you know the pinned comment down there today. There's 8 days left if you're looking to apply to join my private stock group that is going to be closing to new members very shortly here. That's access to all my course curriculums, access the private Discord chat, thousandx.com, see the moves I'm making, excl multiple exclusive weekly videos. I got recorded a video on Monday. I'm going to be recording a video tomorrow for the private stock group as well. And so, uh, if you're looking to take your investing knowledge up to a much higher level than where you're at, that will be the pinned comment down there. All righty, ladies and gentlemen, are you subscribed to the channel by the way? You should be.

2:32 Listen, if we look at the public count, right, it's clear as day, we have a situation going on, and that is AMD keeps becoming a bigger and bigger position in the portfolio, right? I mean, this baby is all the way up to 31.25% 25% of the entire portfolio is now made up of AMD. It has gone up so much. I mean, we're up over a million. We're up almost $1.1 million on AMD stock now at this point in time, right? Which is just a very large figure, right? And so now you may say like, man, isn't that tough to be up $1.1 million and not take the profits? I mean, the reason I'm not taking the profits is, you know, when you go into my projections, I won't pull them up right now, but when you go to my projections around AMD, I have the stock going to my base case minimum is $1,200, right? So, we're not even halfway there yet, right? And then if you look at my more bullish base case, we're talking about $1,600 in the next few years. And if you look at my bull case, we're talking 2,000 plus, right? So the moral of the story is here like we're headed in the right direction but you know as it goes up more and more I'll be more tempted to start cashing some shares here and there but you know we we got more we got a lot more juice to squeeze. Right there there's certain time periods in a stock where I'm like may not be much juice left to squeeze here. AMD there's a lot more juice in my personal opinion. I could be wrong but I think I'll be right. And um you know with AMD like we haven't even got to the shock and awe quarters yet. I think that happens over the next two quarters. I think we're going to get backtoback guidances that will be shock and awe.

4:15 People be like what what did they just put up for a guidance number? And then you'll get some shock and awe margins coming in over the next few quarters. And so you know that's usually when you get that that blowoff top on a stock right and it just goes insane. And also so many analysts are behind like oh like there's still a fun cycle ahead of AMD. Now of course there's always a risk of what if the whole market goes down well if the whole entire market goes down everything gets pushed down with that.

4:43 But you look at AMD even on strong day excuse me weak days in the market stock incredibly strong. Look at yesterday perfect example yesterday market tanked right off a cliff at the end of that trading day right off a cliff. And AMD still finished green did not right. We're looking at Meta, very big position here. Uh Amazing's on Amazon has a long runway of growth. You know, just Meta and Amazon, those are the two stocks to just keep in mind. They're held back right now. They'll be continue to be held back in the short term really just because of all their spend and people very unclear about what return on investment, what ROI they're actually going to get on all their spend, right?

5:20 And they're going to have massive depreciation numbers over the next few years that will hurt their earnings per share. So, do keep that in mind. So earnings per share growth for Meta and for Amazon might not be nearly as strong as in I wouldn't say I'll say it's almost a guarantee that earnings per share growth is going to be extremely weak compared to previous years because of how much they're spend like it's just math you just run the numbers on it. So that's where people are getting a little I would say people are making a little bit of a mistake here in regards to Meta, Amazon, Microsoft. Okay listen I got to explain this. I've explained it several times over the past few months, but I don't think people understand.

6:00 Okay, let me explain this. People look at these stocks and they're like, "The Ford P is so low, right? Look at the growth rate. I mean, Meta's revenue growth is 30 plus%. Ford P at 20." People are like, "Is this not the greatest deal ever?" Right? Here's the issue. For the next couple years, Meta is spending so much on these chips. They're going to have to be depreciated. They're talking about probably a fiveyear to sixyear cycle in terms of depreciation. So you don't have to depreciate it all in one year. So if you're going to spend a hundred billion dollars on chips, you don't have to depreciate all in that year. Maybe you do it over five years. So it's $20 billion hit per year, right? The issue is they spent a fortune last year.

6:39 They're spending even more this year. They're probably going to spend even more next year. So depreciation numbers start to stack heavy. They start to stack heavy. That's an issue for your earnings per share growth for the next several years. And so that's gonna hold back the GAP EPS for the next few years. So that's just something to keep in mind, okay? Those are great buys long term. Meta and Amazon are great buys for the long term, but just don't get hyped on those stocks for the next year or two. Doesn't mean they can't go on a run. They might, but you know that depreciation is going to hit bad. Okay? It's just math. It's just math in regards to that. Okay? So, that's just something to keep in mind with those two particular stocks. Okay, Cheesecake Factory. Oh, does this stock continue to run? Look at Cheesecake now up $121,000.

7:31 Cheesecake's running so strong right now. You got to ask yourself, who knows what? Who knows what? What's going on here with Cheesecake? It I mean, this the strength is so ridiculous in Cheesecake. It's starting to get a little fishy, is it not? It almost feels like somebody is acquiring a big possession. And I'm not talking about a few hundred thousand, right? I'm talking about potentially tens of millions of dollars of a position. Somebody's buying a lot of Cheesecake Factory stock. Maybe they finally figured out, oh, they got two growth concepts that are about to take off across the entire United States over the next 5 to 10 years with Flower Childh. Maybe they're starting to realize, oh shoot, like they got two winter winter chicken dinners that are going to take over. Maybe that's hitting. So maybe they're starting to understand it, but it feels like there's a big buyer out there because a stock is just too strong day in and day out, right? Too it's too strong. Um, you know, I I mean on a on good days, the stock goes up a ton. On bad days, it goes up. I mean, you know, look at a day like today, is the market up 3.6%. No, not even close. But Cheesecake just running is running and gunning, right?

8:42 American Express, I've built this in a pretty darn big position, have I not? You know, we haven't even really got much for gains yet. Only 3,300 bucks. That's basically nothing in the public account, right? So, I built this into a pretty significant position. That's 4% plus the portfolio. I feel very comfortable in American Express for years to go in the future. Nike, guys, if I'm right about Nike, which I think I'm going to end up being right in the end in regards to Nike. I could be wrong. I've been in the market 18 years.

9:08 I've been wrong about plenty of stocks, but damn it, I've been right about something, huh? I think I'll be right about Nike when Nike goes on that run. My gosh, what it's going to do for my portfolios. I'm loaded up on Nike across my portfolios. I'm talking private portfolios, obviously the public account, Patreon portfolio. I got Nike shares coming out my ears. So, if Nike does what I think it's going to do and go on that big run, that'll be a multi-year run. Oh, man. That's going to be a lot of fun. And the best there's a few other great parts of Nike. It's a dividend stock. Another great part of of Nike is that's a stock I could feel comfortable holding for the next 10, 20 years. It's not like there's a day when I'm like, I can't hold Nike anymore.

9:52 Like, no, I feel comfortable holding Nike so far into the future. It's ridiculous. And so, um, that's just a brand that just becomes more successful decade after decade after decade. they'll exit this decade more successful than they were the previous decade which the previous decade they were more successful in the previous decade and so on and so forth and so you know Nike has these these time periods where you know for a year or a few years the stock will go down people question blah blah blah and they always remain stronger at the end of each decade than the previous decade and that's exactly what we're going to see again in my opinion I could be wrong I think I'll be right about Nike right and so um man, what that's going to mean to my portfolios cuz Nike as of right now has been nothing but a holdback, right?

10:42 It's been nothing but a holdback. So when all of a sudden this massive loss turns to break even and then when it starts to turn profitable, oh my gosh, what that's going to mean for the return profile of the portfolio is insane, right? Salesforce service now, those stocks continue to suck, right? the SAS stocks. Listen, when are the SAS stocks going to get it together? My guess is when the chip cycle when the excitement in regards to the stocks around the chip cycle subsides, that's when the money will start to rotate into the SAS related companies because those are going to be the ones that are going to be huge long-term beneficiaries, at least in my belief, right, of a lot of this capex spend. I think companies like Salesforce are going to benefit in a massive way.

11:31 Companies like Service Now are going to benefit in a massive way, right? There's going to be plenty of other companies out there. But that's my belief. And so based upon what these companies, products they're launching and have launched over the last couple years and what they're pushing into in the enterprise space, I think, you know, they're going to build significant businesses there and I think they'll be huge beneficiaries of AI. In the short term, they're just seen as everybody's looking at those stocks as just disrupted by AI, right? Like, and just negativity, negativity on negativity in regards to those stocks. But I think over the next several years, people realize, oh, AI was a monumental opportunity for those companies. So, we'll see what we'll see what happens.

12:14 But that's my belief on terms of when the stock. So, I think people have the next at least 6 to9 months to add to those SAS stocks. So if people believe in Service Now, if people believe in Salesforce, those sorts of companies, right, they'll have the next 6 to9 months to just continue to load up shares, load up shares and build significant positions, right? And put the chips on the table and then in 2027 and beyond, we'll see. We'll see. Are you right or you wrong, right? And so I believe those stocks are huge like beneficiaries over the next, you know, 5, 10, 15 years. But in the short term, you just can't get hyped about those stock prices going up, right? You just have time as a long-term investor that if you believe in those companies, you can build these positions bigger and bigger and bigger in your portfolios and get ready to hopefully have fun over the next several years, right? And that's the way I like to do it in my portfolios. I like to add to these positions, add to these stocks over period of time, right? And build them bigger and bigger and bigger. We don't just go all in in one day or something like that, right? Estee Lauder. Say louder. E stock now up uh $28,000 there.

13:19 So, that one's just that one's still very early. And remember Eel, this was a stock kind of like Nike previously for me where it was down big, right? It was looking ugly as far as the stock price went. And then next thing you know, we broke even and then we started making profits and then just been building, building, building. Um and that one still has a long runway of growth for years to go in the future. Honest is honestly a great opportunity in the market. that stock. I've been on record many times. I think it exits this year $5 plus. I truly believe that. We'll see. I could be wrong, right? But I think we're exiting this year $5 plus on honest. And then we'll continue to build on that momentum over the next several years. And you know, as time's ticking on here, I think it's looking more and more correct. Next quarter number should be good. Uh the next quarter should be even better in regards to margins, profitability, you know, um as far as organic growth goes. And so watch out for honest Celsius. Oh my gosh, is Celsius a great opportunity? This is kind of like the SAS stock situation where people just have a great longer term time frame to just continue to build build these positions out. I was actually just at Costco yesterday looking at Celsius displays and looking at the new uh try to be competitor to Celsius and and all that fun stuff.

14:32 Right. By the way, I went to Costco to buy a $40 fan and I ended up spending over $600. $634 to be exact. Like what in the flipping flapjacks going on out there, man. Holy smokers. That was no dang jokers. But uh Celsius long-term huge opportunity there. Palunteers, you know, Palanteer wins wins. There's another stock. It's just Palanteer just gets brutalized 100. You know, the stock market's at basically all-time highs, is it not? Right? You got stocks like MU, AMD seem like they go up every day. And Palanteer sucks as far as a stock price goes, right? 128. I mean, this stock was 200 plus months ago. Like this stock was 200 plus last year. And it just like you you look at that stock and you're like, dude, what happens if the market goes down? Where's Palanteer going if the market was to go down? If it's doing this bad with the up market, right?

15:26 Listen, Palanteer will go on a run when all those other stock SAS stocks go on a run, right? In my personal opinion, that's when that one will see momentum again. But I warned about Palunteer. How long ago did I warn about Palanteer in this situation last year? That's why I was selling so many of my shares. I said, "Hey, valuation's getting rich in regards to Palanteer." And you're going to have a situation that people are going to have to come to grips with here, which is going to be revenue growth eventually is going to start to decelerate and they'll go from like 85% revenue growth down to like 70% and then down to like 60% and then down to like 50%. Right? So, the growth rates are still great, but it's just it's a hard thing for investors to digest when those growth rates are shrinking, shrinking, shrinking, right? And so, especially when you come off these ridiculous numbers they've been posting here recently. And so, it just is what it is, you know? Um, but Palanteer is a great company. Obviously, they got great products in the market and the company's position to thrive for years to go in the future. So yeah, Palanteers, uh, PayPal, that stock, you know, it's very cheap. That's all we can say about PayPal. It's a very cheap stock. It's at like 84 P, but you know, someday we'll get it together, maybe. We already spoke about Service Now. Revolve is one of the best opportunities in the market for a small cap stock in my personal opinion.

16:40 Top tier income statement, top tier balance sheet. Like look at the latest quarterly results. That's a great income statement and a great balance sheet. There's no debate. There's no debate. great numbers, right? Great management team at this company. They've got a great customer base, too, that spends a lot of money on their their websites. And so, it's just a niche company, but man, it's a it's a winner. It's a chicken dinner, right? SoFi, huge long-term opportunity. They're in a place that they should become a financial giant over the next decade.

17:10 And um that's very exciting to own that sort of opportunity, right? Google McDougall continues to just be a stock people want to own. Uh their numbers are great. Elf on a Shelf has incredible long-term opportunity. Netflix, that is my newest buy. Uh we'll talk about if that's one of my top three buys right now. And then Fubo is in the Tubos, right? That stock uh not so pretty as far as that one goes. But Fubo, the financials are in the best place they've ever been since I invested in the company. But you know, [snorts] someday maybe they get some respect.

17:45 Talk about Jim Chain. else. Let's talk about this market. Let's talk about my opportunity on my thoughts about SpaceX and then we'll get into my top three stocks that >> the definitive on the street of a cautious view. Jim Chos, honored to have you here. Let me just cut to the chase. What is this distinctive feature that makes SpaceX remind you of Enron? >> Oh, hold your horses one flipping flap jacket moment. They just threw SpaceX and Enron in the same sentence. That's a little disrespectful. Oh my gosh. Well, I don't know that it reminds me of Enron, Tom, but it reminds me of the Enron time frame. How's that? In that I've always said that Wall Street has a printing press, too, just like the Fed.

18:26 It just takes a while to get going. And one of the things that I think SpaceX is ushering in in 2026 is massive equity issuance. and and historically without a doubt in the 20th and 21st century anytime you have seen massive IPOs and secondaries relative to the size of the market or the economy investors generally have been advised to to be a little more cautious or or reduce their risk. So the 1999 2000 um 2021 for the first half of that year u during the meme stock and spack craze.

19:05 We are now going to break records in 2026 for IPOs and secondaries. Um and SpaceX of course is the granddaddy kicking it all off in a big way. But we're going to see OpenAI and Anthropic and probably some others. So, we're going to shatter records and and so it's telling you that that right now supply is meeting demand. Um, which we haven't seen, by the way, in 23, 24, and 25, but we're seeing it now in 26. I look Jim Chanos at this, and we've had a wonderful amount of time here.

19:35 >> Yeah. So, I I'll be honest, he brings out a good point here. When you see a lot of companies going IPO, it's usually because the market's been hot for a while, right? And so that's exactly what we're seeing right now. We got SpaceX going public. Anthropic is supposed to go public very soon. And then supposedly right after that, OpenAI is going public. And these are massive, right? All of these, I mean, you know, look at SpaceX is like a $2 trillionish valuation somewhere in there. Uh, Anthropic, they're talking about a trillion, maybe more. We'll see.

20:08 OpenAI, they're talking about a trillion, maybe more. We'll see. Right? These are monumental IPOs. And so that only happens when the market's been very good. And when the market's been very good for a long time, usually that could mean a short-term top. So would I be shocked if we hit a short-term top in the market in the next 6 months and then had a down cycle and then went from there? I wouldn't be shocked. Now, just because that might happen doesn't mean let's plan on that happening and let's wait to buy stocks till we get some sort of de. No, no, just buy. Like if you get that opportunity, buy by buy. Because between, let's say 6 months from now, market tops, you know, let's say opening eyes to go public. Let's say they go public 6 months from now and that's like a short-term top of the market, then the market goes down 15%. Between now and then the market could go up another 15%.

20:56 Like you could have a ripper rally, right? And you know, like just don't plan on hoping the market goes down and I'll be able to buy at the perfect time. Like buy consistently over time. I do my buys every Friday unless we have a holiday which we do tomorrow. So I did my buys here today on Thursday. I posted my buys in the private stock group. I posted my buys in Patreon. Right. And so like don't play that trying to time it out game. But what he brings up a good point that could mean you're at a short-term topish level. And so you know and then a down cycle concludes from there. And it's just a question of do you get a small correction, large correction, do you get a crash in the market? Right? To get a crash in the market, you need a lot of things to fall apart, right? A small correction, that's easy peasy lemon squeezy. Uh, a large correction, you need multiple things to be going wrong. Kind of like what happened in 2022. NASDAQ fell over 35%, peak to trough. But you had the Fed raising rates at the highest clip we've seen in recent history, certainly, right? Almost ever. You also had sky-high inflation, which we hadn't had to deal with since like 1980, right?

22:02 And you had an earnings recession all at the same time. That's a lot to go through. A lot to go through. >> Mr. Chenos, so much to talk about. Scar. >> Oh, and then you actually had a a recession technically in the economic data, but they didn't call it a recession because of whatever BS reason, but you actually did have a recession technically, which they didn't call it a recession, which again was just ridiculous. But that was in 2022. So there was like a bunch of stuff. So if you want to talk about, oh, how do we get the NASDAQ to go down 35 plus%.

22:30 You need all that to play out, right? It's possible, but those that's a that's a lot, right? No different than the great financial crisis. Like that you need a bunch of stuff all to go wrong at the same time and then you can talk. >> He's got some themes. I have some themes as well. Ed Lelo fronted me. You see how he did that? Ed Ed Ledllo just stole my thunder. He needed to do it. >> Chainos is thinking about the Neo cloud.

22:52 This is the team here. Uh the New York Times article of a day or so ago. Is SpaceX worth 1.8? 8 gazillion dollars. XAI seems to be suddenly changing its business model from developing models like Grock to basically becoming an Ed Lello Neocloud. The entire valuation rests on XAI's progress. The Neocloud strategy is a commodity business that is valued far lower on the public markets. Jim Chenos to Isaac and the crew over at the New York Times. They're talking innovation, but you're predicting they'll go safe. Well, >> is this a gentleman a giant or is Chino small? I mean, he looks like a He must be a giant. I got to meet this guy someday. Holy smokes.

23:40 >> What's What's really interesting, Tom, is that >> I'm 6'3, but I feel like this guy's like 6'8. I'm like 200. I feel like he might be 350. about a week 10 days ago. Um the vast driver for the SpaceX TAM in their perspectus was the enterprise solutions for XAI basically Grock what what what the models produce right the software and instead they basically did a 180 pivot and said we are going to lease out our capacity to anthropic and Google and that's the neocloud model right that's you're an equipment lessor and that is a much lower valued business in the marketplace than being a model company or a hyperscaler. And we've been following data centers for a long long time. And basically you're it's a finance business, right? You're you're you're buying the chips from Nvidia or somebody else and then you're leasing them out to Anthropic or what it's a rate of return business. It's not a super high-tech business. Yet 22 plus trillion of the 29 a.5 trillion of of SpaceX TAM in their perspectus was based on that business.

24:51 And >> okay, so uh before we go further here, you know, this is my issue with Jim Chain House. He'll bring up a great point and then look at it from such a skeptical view that he'll lose some credibility. And so let me explain exactly what just transpired here, right? He brings up a great point like okay, SpaceX is leasing out, you know, their chips and, you know, getting this rate of return business where essentially other companies can, you know, rent their chips and their infrastructure and be able to use that, right? And, you know, that's like them buying Nvidia chips, getting everything set up, and then let's rent it to somebody else. And so yeah, it's like a rate of return business. Fair. That's a great point.

25:39 And that's not nearly as exciting of an opportunity, right, as a lot of the other things that you're supposed to have going on. But to be fair, that doesn't mean they can't do the other stuff they're talking about. So with Grock and what they're trying to do there and XAI, like that doesn't mean just because they're renting out some of their capacity that they can't still do all these other great ambitious things they're doing. They could do both simultaneously. It's not like well because they're renting out some of their space that means like you know they have no opportunity like no it's not really the way this works right and so um yeah keep that in mind and also Elon Musk you know dude who's very very very good at business and so there could be other motives why Elon Musk is doing something like that maybe he purposely bought way too much capacity right understanding it's better to keep those chips away from competitors and then be able to rent out space if they don't need it. Like he could have plotted all this out, right? He's not going to necessarily tell you that I went out of my way to hog Nvidia chips or do this or do that, right? But don't think that's not a possibility, right? It's like like he didn't he didn't become a trillion dollar man by accident.

26:59 Didn't happen by accident. Okay? Yeah, you got to be pretty damn good at business to become a trillion dollar man, do you not? Okay, so that's that's the issue with Jim Chenos. He'll bring up a phenomenal point, very eloquent, you know, very intelligent point like that and then but just not give you the full picture. And so it's like, okay, good point. And then it's like, well, what about this side over here? And that's where that's where some of these bearish more bearish people, short sellers, that's where they falter. They only look at negative negative negative all around, right? and they they don't look at it from like okay but there is this other positive thing about like oh they're not just doing that they're doing this over here >> it just struck me as very very odd that that right before the IPO they would pivot to a much lower margin and lower valuation business than the hopes and dreams which we you guys have mentioned I've mentioned based on producing these wonderful AI agentic uh software uh products from Grock >> and And it's it it's a one of many heads scratchers about this deal.

28:04 >> At what point does financial reality, the kinds of things you were just talking about, breaking down the numbers, become more important and matter more than the storytelling, the hopes and dreams part of it? Because that's what Elon Musk excels at and that's what people are buying in on. >> So the question is, is does the Elon premium is it Elon premium times two or Elon premium divided by two? I think that that's that's really the question here because there are people who who believe in Elon and and have bit up Tesla accordingly to well beyond where I think most fundamental analysts think it's worth because of optimist robots and autonomous driving and all that good stuff and now you have another Elon >> I mean Jim J's doing an interview you know you know Tesla's going to get brought up at some point in time you just know it >> on hopes and dreams company with an even bigger valuation um and and so is Does that double double the value or does it basically say, "Okay, well, I'm going to pick one." Um, because neither of them, let's face it, are are being valued on their operations. SpaceX is, I believe, depending on what I heard in the green room, is probably now at about 110 times revenues. And and just history tells us, you just never really make much money buying equities at over a hundred times revenues.

29:20 >> And so, this is Jim Cheno's fatal flaw, what you just saw there. Okay? this is not something you want to get trapped into. His fatal flaw is he looks at Tesla can look at something like SpaceX and be like this valuation is stupid and of course like agreed. Yeah, that's silly. But Elon Musk companies are just Elon Musk companies. Like they're just their own dang thing. Okay. So they're going to trade a ridiculous trailing 12-month piece. They're going to trade a ridiculous forward piece. They're going to trade a ridiculous two two-year out forward piece. are going to trade at ridiculous price to sales ratio, ridiculous two-year forward price.

29:59 That's just Elon Musk companies. These companies tend to have a lot of hype, a lot of excitement. Um, a lot of people that are just like, I'm buying this and taking it to the grave. I'm going to pass these shares on to my kids. It's almost like a Bitcoinish mentality, right? And so, um, and he's always great about pitching the super long term about what we could be doing, you know? 10 years from now and 20 years from now and those sorts of things, right? And so it gets people excited about the future.

30:29 And so they just like to buy the stock and hold the stock for many, many years. And that's what makes those stocks very difficult to bet against. And that's where a fatal flaw comes in of like looking at it from a traditional view of like the valuation's stupid and business isn't that great. The stock has to go down. That works for just about any other stock in the market. But for Elon Musk companies, it's a whole different game. You need the market to go really sour and you need the sentiment around those stocks to go really sour. If you can get that, SpaceX going down 70%.

31:00 Tesla's going down 70%. But you need both of those. And that's what you saw in like 2022 for instance, right? 2022, guess what? Tesla went down, you know, 70% in that crash. NASDAQ went down 35% or a little over 35%, right? But Tesla peaked a trough from where it peaked at in 2021 to where it troughed down at the end of 2022 going into 23. It was like a 70% drop. But you had sentiment get really negative around the stock or actually was over 70% if I recall.

31:26 Sentiment went really negative around the stock and you had the whole market drop. And so yeah, have the NASDAQ go down 35 plus% and the sentiment go really negative around SpaceX and Tesla and you'll watch both those stocks go down at least 50% if not 70 75%. But you need both those things to happen. >> Well, you as we know are inherently skeptical. your company nameos a skeptic you're not being able on SpaceX or Tesla or Elon Musk completely tracks.

31:56 >> Is there anything in the SpaceX financials or Musk's management of the company that does impress you that you can say good job on? >> Look, I think Starlink's a real business. Um we we can look at their businesses. Again, we have to go on what's in the the perspectives. Starlink's a real business. It's growing. Um it will probably continue to grow although its growth is slowing. the launch business is still losing money after 22 years. And and and and I'd be remiss from my fellow glass half empty uh you know participants if I didn't point out that the rocket that all of this depends upon Starship still has not achieved earth orbit in 12 missions, right? And half of those ended up with some sort of mishap. So there's a lot riding on all of that. I think Starlink is a real business. It's It's worth a couple hundred billion dollars. But But >> that's a big that Hey, hey, hey, hey, hey. Whoa. That's a big statement. Jim Chanos, the pessimist says Starlink alone is worth a couple hundred billion dollars.

33:00 Bravo to Starlink. Like the fact that Jim Chanos just on record said the Starlink business is worth a couple hundred billion dollars, that's impressive. orbit in 12 missions, right? And half of those ended up with some sort of mishap. So, there's a lot riding on all of that. I think Starlink is a real business. It's it's worth a couple hundred billion dollars, >> but but the the real the real hopes and dreams here is on XAI, >> which is, by the way, a company they bought in February for 250 billion in stock that the market is now valuing at probably well over, you know, trillion and a half dollars.

33:43 >> On Bloomberg television, on Bloomberg radio, worldwide with us, Jim Chen, thrilled you could join us today in this historic moment for his Wall Street and all of us uh around the world. So the short crew is at Tesla Tesla Tesla somewhat like SpaceX and I'm enjoying a 53% per year return since sort of the beginning of co you know back six years or so. So you know again Tesla's done better than good and there's a modeled negative free cash flow right now. How long can the optimists of SpaceX keep this going without delivering a more conventional income statement? Well, I think you answered the question, right?

34:23 In years if pos if possible. But but Tesla is trading at about 14 times revenues, right? It does have 100 billion in revenues and it ramped revenues pretty quickly in in 2019 and 2020. Um so so there is a real business there in terms of large amounts of revenues and and some cash flow. Um, it's not trading at 110 times revenues and and that's a magnitude of difference I think that's really important for your viewers.

34:56 >> I've got >> Oh, whoa, whoa, whoa. But hold your horses. One flip and flapjack moment. Listen, Tesla's just not nearly as exciting as SpaceX. Just to be quite frank with you, like SpaceX has really taken the oxygen out of Tesla from a perspective of if you're looking for something exciting to invest in, SpaceX is just a lot more dang exciting, right? Like Tesla now seems boring compared to SpaceX. Like SpaceX is freaking launching rockets. SpaceX has a huge artificial [snorts] intelligence business, right? Like there's just a lot more excitement, a lot more to be hyped about with SpaceX than Tesla, right?

35:33 Tesla's like almost like boring. It's like, okay, they're they're supposed to eventually have robo taxis. It's like big deal. Whimo with Google's already doing that. Like Whimo is already in many of the biggest cities in the United States, giving rides to countless riders with no humans inside, taking them all over different cities. I've been in many Whimos in different cities across the United States now at this point in time. So Tesla's finally going to get there, but it's kind of like you're already like, you know, the second player whenever this does actually happen, the robo taxi. And then robots, it's like h we'll see what happens with that, right?

36:07 uh humanoid robots like that's always been something super difficult to achieve and like it still seems like it's kind of out there. Robots are usually like robots it's much better to make a robot that is not in the form of a human. It's much better to make a robot in the form of some sort of machine that can do exact things and take this door for this car over here and place it in this part and then the another thing comes and like you know puts a screw in it blah blah blah right that's where robots really excel at when you try to make a a robot into a human it's brutally difficult and that goes all the way back to my study years ago in a company named iroot and Colin Engel who was a genius when it came to robotics right and um He used to talk about like how difficult it is. He like, you know, we're oneonone. Humans are oneonone and trying to, you know, replicate it is just brutally difficult in the terms of the way we move and all those sorts of things. And so to make a physical thing, move, act, the intelligence, all those things like a human, it's brutal, man. It's brutal. So the moral of the story is here SpaceX is just much more exciting than Tesla and that's why it's going to command a much higher valuation much bigger price to sales ratio P ratios all those things for years to go in the >> and just for the first time scar I've ever looked the same BQ function on the Bloomberg and of course Chains nails the price to sales because he studied Tom Gel years ago I've got 20 well right now I've got a number of 27 times revenue on the BQ scale it may be a little higher than that I've never seen a stock like that So that I mean I'm glad you guys bring up Tesla because there is this expectation that Tesla and SpaceX will somehow merge or will be combined in the same way that XAI and spa SpaceX got combined and merged. How are you thinking through that? What does that mean for investors who believe in the Tesla business but are maybe skeptical of SpaceX?

38:04 >> Well, again, if it happens, and I have no idea if it if it will happen or not. >> Does Elon need to make it happen? >> No, he doesn't need to make it happen. He can keep them separate if he wants. It's it's solely up to him. We all know that. But it would be an equity for equity deal and and so I don't know you know how much value that would add in terms of uh cutting overhead is not the story here right it's really it's really what these companies will produce in the next 5 10 years >> I I could see that situation happening where SpaceX acquires Tesla under one circumstance and you know what that one circumstance is and this could easily happen in the next few Tesla stock goes down immensely. Let's say Tesla stock goes down from here 40 50 60%. I could actually see, you know, if the valuation went down to $500 billion market cap or something like that, especially if it went lower than that, I could see Elon then combining the companies together and then you get the whole thing together, right? And um that kind of brings a new level of excitement. So if we eventually have some sort of large correction or crash in the market in the next let's call it year or two I could see SpaceX doing that and SpaceX is going to raise continue to probably raise a lot of money to put them in the position that you know if they wanted to pull something like that off they could or buy other companies and they are actually buying other companies you know as of right now I believe they got a $60 billion acquisition going through it right now. Look at this Jim Chenos is an historic moment and the answer is through the cycles and I opened up talking about Enron and all that. I want you to talk about the short business right now is a hugely important part of financial society in this great bull market we're in right now. There's a lot of scars out there. How do you keep that going when you see SpaceX right now? How do you keep a short model going with bull sectors and a bull trend in the broader market?

40:03 >> So through 2023, we're running outside money. Now we run our own money. Um we've been hedged in the short world since 1996. Basically our view has been we don't know where the market's going and nor does anybody else. So we'd rather be long the market and short our collection of radioactive companies, if you will. And that's been a very profitable business. And it's been a very profitable business for the last few years too despite the market hitting new highs because there have been a lot of stocks as you guys know that have lagged dramatically. So our view is always be long the market and be short some percentage of of you know companies with bad businesses >> and and I think that's nothing I would recommend your viewers to do at home.

40:48 All right. I don't don't recommend shortselling for for most people. It's really for the pros for lots of reasons. things like getting an in interest rebate on your shorts and and a variety of other things. But I will say that that one of the things right now that is very apparent is that insurance is cheap and >> and it's cheap for all the reason >> I I don't want to interrupt because Scarlet wants to get four more questions in. Is SpaceX radioactive?

41:13 >> I we'll have to see where it settles out. You you can't short it right now anyway. So it's a moot question. I mean, I think that that anything trading over a hundred times revenues is of our interest. Historically, returns have been awful at those valuations. >> You mentioned earlier the dot bubble. Are we doing bubble 2.0 right now? >> Oh, this is much bigger. The the AI the AI buildout relative to the TMT buildout of 992000 is multiples even as a percent of the economy uh GDP. Um and and an important thing to point out is that when you get these capex booms in technology, they're tremendously accreative to earnings. And there's a simple accounting reason why. That is [snorts] when when Tom buys chips for his data center from Nvidia, Nvidia recognizes that as revenue and profit.

42:10 >> Tom capitalizes those expenses and writes them off over 5 to 10 years. And so you have a mismatch where the same dollar in a capex boom is recognized as profits by one entity and deferred by the the same people expending the [clears throat] dollar. And that happened in 90 989 2000 the middle of 98 S&P operating earnings rose 30% to the middle of 2000 over the two years. From the middle of 2000 to the middle of 2001 when order books got pulled, S&P earnings dropped 40%.

42:46 >> Was that too much accounting for a Friday? >> I think so. >> I'll leave it. I I'll stop at that. >> Jim, let me ask you one last question before we let you go because this is Bloomberg money after all. How do you approach your own financial planning? How does it compare with how you advise or manage money for others? Well, it's mostly in my business and and and in ancillary things. Uh since I'm semi-retired right now and I'm advising people, not not directly running their money. So, it's pretty conservative, but but uh >> so you set and forget or you do make a lot of changes. [clears throat] >> It's mostly passive. Again, for most people, I think that's the way to go.

43:21 >> Jim, I got to tell we got our merch over here. Scarlet's got her NYX jacket here ready to go. >> Let's go next and Hordon are going to Santa. >> Hey, they did get it done. Okay, next up here and then we'll react to the Mike Wilson clip about where this market's headed from here. So, what are my top three best buys in the market right now? I will put them in order like this. Number one, E.L.F. Beauty. E.L.F. Beauty in my opinion is the number one buy in the entire market right now.

43:57 Number two, Celsius Holdings. Celsius Holdings. Number two. Number three, it just came on the radar. Really? Netflix. I think Netflix is the next best buy in the market as of right now, right? And so those are my top three. Then after that, I would put a Nike in there after that. And then and remember I'm thinking about these stocks for the next, you know, several years. I'm not just thinking about what's the next, you know, the stock that could be the best over the next 3 to 6 months. Like if we're just talking about the next 3 to six months, like it could be AMD, right? Like AMD could continue to run the next 3 to six months and could be a thousand bucks, right? I'm thinking about the next 3 to six years, right? I'm thinking after all the hype and the excitement around the chip cycle over and so, you know, I'm thinking about companies that are about to benefit huge for the next three, five, seven years, right? and haven't reflected their valuations.

44:57 After that, uh, American Express, I really like obviously I like Service Now and Salesforce a lot as well. And then I mean Meta's attractive, right? Once again, you can't get excited about the short term with Meta, but the but the company is a great company for the long term, right? So, okay, next up here, Mike Wilson. Let's react to him. >> The bond market might walk back the Fed hike it's currently pricing in. Our conviction in the current bull market is intact. Mike joins us now for more.

45:34 Mike, always great to see you. Thanks for being here. Let's start there. This idea of what a bull market means. Does it mean stocks just go up and to the right or does this mean that there is some sort of cyclical undercurrent that shows an economy that truly is strengthening? >> Well, let's go back to why we're in a bull market. It's all about the recovery from the rolling recession from a year ago. This operating leverage story. It's an earnings driven bull market, right?

45:57 So, last year we got the multiple expansion in advance of, you know, predicting that that was going to happen. And as you recall going into this year, there were a lot of kind of boobirds on the economy. People were very nervous about earnings. And we were we took the opposite view. I mean nominal GDP is booming at seven to eight% and that's that's in place. So what's going on now is the multiples coming down okay over the last six months but the earnings have been so good that the market can still go up. So the next phase of the bull market at this stage typically is multiples are flat to down. earnings come through as as expected, but that can have the earnings the stock market higher and you get rotations to the areas where that earnings growth is underappreciated. And we think that yesterday's action is some evidence that maybe we're going to have that next rotation. We've already had several rotations this year and we think that next rotation is in some of the areas you mentioned like regional banks or consumer goods which are asymmetrically positively you know in inspired by oil prices coming down. This has been the argument.

46:57 >> Okay, so before we go further here, listen, if you want some really good news for the economy, and I'm really just talking about for the next two to four years, okay? Just for the next two to four years, not the next two to four months, the next two to four years. You want some really good news? One, all this fortunes of money being spent by big tech companies, that money could just be used on share buybacks, which really doesn't go back in the economy.

47:23 The great news is all these companies spending these stupid amounts of money, right? Meta, Amazon, it all goes right back in the economy, right? Rather than doing share buybacks, it's being spent out there to build these massive data centers, right? And other facilities, which needs tons of construction workers and tons of workers in general for those, right? And uh the amount of trades that make money off of those projects is immense. And then obviously companies like Nvidia and AMD and those sorts of companies benefit huge and they're able to hire, right? Obviously, you've got a lot of chip production now starting to happen in the United States of America, including the massive TSMC facility in Arizona, which is about 15 to 20 minutes away from a rental house I have out there, right? Like that money is is being spent in the economy and gets circulated, right? And so that's great news. And that's a several year trend that's very bullish for the economy. Another thing is housing's been dead for years now at this point in time. Housing, in my opinion, is always the most positive thing that could pass possibly happen for the economy. There's a high probability the 10-year will trend down for the next several years.

48:30 High probability, right? And so if that happens, housing comes back more and more, right? And I'm seeing prices, you know, like I haven't really noticed pricing going up for years now at this point in time. If anything, it's been kind of flattish or going down, right? While wages have actually been going up. And so I think the housing market could set up to be very positive over the next several years, which would be phenomenal because that's been a drag on the economy. If anything, when people aren't moving, that's just a drag on the economy. When people are moving, man, it's a huge boom for the economy, right?

49:04 People got to go rent trucks to move all their stuff around and go buy new appliances. And people are fixing up their properties to get ready to sell them. And then people are moving into their properties and they want to renovate something or change something. They're going to go buy this new couch over here, go buy this, that's just like a massive boom in the economy of money getting circulated and spent out there and gets money, you know, moving. If everybody just sits in their house year after year after year and never moves, right? I mean, just are they going to go buy a new couch? Are they going to go renovate? Are they going to go fix something up? Nah, just whatever. They going to go paint that wall that's messed up and go buy some Shervin Williams paint from Home Depot? No, I don't need to do that. like, oh, those things just get pushed out and pushed out. When you get people moving, fundamentally change the game. And so that's another thing that could be very positive for the next several years for the economy if we can get this dang housing market moving.

49:53 >> That the rally in the equity market is entirely driven by fundamentals. And then SpaceX happened. How much does that kind of torpedo some of this thesis? >> Well, look, I mean, you know, markets are driven by fundamentals and animal spheres at the same time. I mean, you can't separate the two. They work in in harmony. And so yeah, I mean is it a little frothy right now in certain areas? I mean not necessarily in areas there's a lot of leverage in the system in in semiconductors, okay, as an example. And that's coming out now a little bit. That's something we wrote about two weeks ago. To me, that's a healthy development as long as there's some place to go to, right? And so if there's no place to go to, then you can have much more serious down a downturn that can turn into something that's more severe. We don't think that's happening.

50:32 We think this is a normal transition. I want to go back once again to the beginning of the year when people were were really >> uh Oh my gosh. Oh my gosh. Micron MU, you got me flipping my flapjacks. I'm looking at that stock right now. $1,141. A lot of people believe uh not a lot of people, a good amount of people I've seen that do own MU think it's going to 2,000. We'll see. We'll see, man. That stock is a pretty that's the strongest stock I track. Um, stronger than AMD, right? Which is saying a lot because AMD's strength is insane. But nothing is stronger than MU as of right now, right?

51:17 That once again, that memory market can switch on a dime. So, you know, what's hot right now a year from now could be ice cold, but for right now, it it's it's, you know, and obviously SanDisk and others are are hot as I don't really track SanDisk. So, >> you know, kind of pessimistic about growth. All we've seen this year is one rotation to the next from commodities. Okay. What happened this year? The the Fed started printing money again, right?

51:40 They they R&P that went into gold and silver stocks. Then it went into metals and rarers. Then it went into energy stocks, ended up in semiconductors. What do all those have in common? They're all commodities. Okay. So, we've had a commodity rally basically bouncing around. And we think now we're going to get that broadening out story that was kind of going in January and February and it was halted by the the war in Iran and the oil price spike and the repricing of the Fed that now is subsiding and so that we can rotate back to some of these areas procyclical areas where the earnings are quite good but they're underappreciated by the market.

52:10 >> What if we get a hawkish Kevin Worsh could that hurt the rotation? >> Well, define hawkish Kevin Worsh. I mean there's a couple ways to think about that. I think one is on the rate side which I think is unlikely. Okay. The other's on the balance sheet and we don't really know yet how he's going to want to position that. What I would say, and we heard about this this past week, is, >> oh, hey, hey, hey, hey, Mike Wilson, Mike Wilson. Hey, hey, hey, hey, hey.

52:31 Listen, Wars wants to shrink that balance sheet substantially. That's his clear stance, right? And um so I would expect him to shrink that balance sheet considerably over the next, you call it two or three years. Not going to happen overnight, but he should shrink it over the next several years. >> We already know what's happening, okay? Which is that, you know, J. pal left him a nice little package which is that we're we're basically already seeing a deceleration in the R&P. Okay, this is a I I I've spent the last two years painstakingly trying to follow liquidity because that has been the main driver of kind of the animal spirits and it was very positive at the beginning of the year when they restarted the R&P or asset purchases and you had treasury buybacks as well and the SLR, you know, increased some capital from the banks that now is decelerating, right? You've gone from 40 billion a month in R&P to 10 billion a month. So that's a deceleration that's already in place.

53:23 He's inheriting that. Is he going to come out and say, "Hey, we're going to re increase that." Probably not. Is he going to say we're going to kill it? Probably not. But that deceleration is still in place. So, I think we already know the answer to the test. Okay. We're having a deceleration in liquidity in the moment. And that to me, as we've been talking about, is sort of that's why you can have this sort of summer chop and summer correction like in this rotation yesterday. You said it already.

53:45 We're getting a rotation and a downtape. Okay? That's what I expect. We're going to get a down tape, but we're going to get a rotation. And that's a signal that we're seeing a leadership change. >> What's the >> Mike Wilson? You know, listen, he's taking the same stance as so many people taking. You know, they've been expecting, you know, market to start to sell off in May, continue to sell off all the way until the fall, then a rally likely in the fall, right? And um just like everybody's on that one side that just it tends to be wrong, right? And so like like I said from the beginning like it wouldn't surprise me if we ran through the spring into the summer and then we have a sell off in the fall because like everybody was expecting the market to you know sell off then it doesn't sell off and then they're expecting to go up and then it goes the other way like >> next risk on the horizon. The market was able to get through tariffs obviously they're looking beyond now the conflict in Iran for the rest of the year. Is it just that potentially I mean the president says if he's like what he sees in Iran he'll start strikes again. Is that what potentially could be disruptive?

54:44 >> Well, I mean, your your your viewers probably won't like me saying this, but the markets moved past the war. You know, they moved past tariffs a year ago. I remember in this time last year, June of 2025, everybody was still harping around tariffs. And we had said a month before like we've moved past tariffs. And so it's I feel it's the same thing. Another thing we learned in this war, which is amazing, okay, and I didn't expect this, is we just learned how much supply is out there. Okay? I mean, like if you had the situation, this is a perfect storm. or if you're an energy bull at the beginning of the year, by the way, energy stocks did incredibly well and then they peaked the literally the day of the of the attacks.

55:17 So, if you think about this this event, you can only get to $125 in oil. And if you inflation adjust that, that's so far below where we were in the Russia Ukraine uh war that began 5 years ago. So, that to me is just a really strong signal that there the the world is very resilient in in terms of finding energy supply. China's a big part of that because of all the storage. But to me, that's it's a very bearish it's a very bearish view for oil going forward.

55:43 >> Yeah. Looking at [snorts] West Texas right now, 76. Looking at Brent, 79. N gas 322. >> You're pointing to something that's fascinating. Do you think that the trade in terms of bullish on commodities is ending? The idea that that is going to be the outperforming sector. >> Okay. So, before you know I close out this video here, okay, listen. As I tell you guys, there's going to be lots of opinions on where the market's headed, what's going to happen with the market. Are we going to go up? Are we going to go down? Are we going to go Chinatown? Right? Um, all those sorts of things. It It's fun to talk about and debate, right? And and try to guess, but don't let your money decisions be don't make money decisions based upon where you think the market might go in the next 3 months, 12 months, six months, 18 months. Do not do that. just focus on do I have opportunities to buy great companies? Yes, I got this stock, this stock, this stock, right? Build out an overall great portfolio filled with some great companies, right? And um build out those positions over time. And so don't get caught up into the game of trying to predict the market and make your money based decisions based upon your market prediction. If you want to, you know, try to predict the market and say, I think we're going to go up at this time, then down at this time, cool. But don't make your money-based decisions on that.

57:03 just it's just like fun to talk about, right? No different than we debate sports. Like if there's anybody watching this right now that you like sports like we love trying to predict like, oh, this game is going to be, you know, go this way or this athlete is going to become this great or this is going to be the next so and so, right? We love making those predictions, but do we want to go make our money based decisions based on No. No. We're going to go bet that this player in college is going to be the next Tom Brady, okay? or you know this team's going to win. No, no, no. It's fun to talk about and debate, but we're not going to make our money based decisions based upon that. And that's where people make big mistakes in the market. They start trying to play it like sports. Make a prediction. I think the market's going to go down this month and so I can't buy stocks this month.

57:46 I'm going to buy them next month or it's going to go down for the rest of the year. I'll buy next. No, don't play that game because even if you're right, you just got lucky. It wasn't skill. I can promise you that cuz I've watched, you know, the most experienced, most intelligent investors I've ever seen uh be wrong countless times, right? Look at Buffett. I mean, Buffett, is there anybody more legendary and more experienced than Buffett? And he's been consistently wrong in regards to his actions. He's built this massive cash pile for years and missed out on, you know, so much money to be made. It's it's ridiculous, right? And so, you know, don't play the game of trying to predict, you know, [groaning] might go down. Let it go down. Continue to buy. You know, every what what do we know about every single correction crash in the history of the market? Everyone was a buy and so buy. Okay. All right, guys. Appreciate you joining me as always. Thanks so much for being here.

58:37 Once again, if you're trying to become a much better investor than where you're at right now, join my private group. Apply to join there. That will be the pin comment down there. We are uh closing applications to new members in 8 days. So, you got limited time to join us in there. That will be the pinned comment down there. And then we'll send you your steel membership cards to your house as well as your welcome package and all that good stuff. Okay. All right. Much love and have a great