Hi Multis
It’s Sunday Funday time again!
Yes, a new Overview Of The Week. Without too much ado, let’s dive in.
Oh, don’t forget your tea or coffee! :-)
Articles In The Past Weeks
This is the fourth article this week. I’m keeping the pace high.
In the first article this week, we did a deep dive on the Nu Holdings earnings and looked if this was a good time to start a position or add to it.
We did the same thing with the Sea Ltd. earnings.
Yesterday, I published the third analysis this week. This time, we looked at Tempus AI. I analyzed the earnings, set up Selling Rules, updated the Quality Score and looked that the valuation. Is it a buy? You can find out here.
Memes Of The Week
Last week, there were most memes ever since I started compiling them. But the selection of this week is not wrong either.
This is the first one, about the SpaceX IPO.
Here’s another one about the SpaceX IPO.
This is not a meme, but I still include it here. It’s the first time a part of an S-1 makes it in the meme section of the Overview Of The Week. Congratulations, SpaceX! This TAM (total addressable market) thing is the most ridiculous thing I have seen since the WeWork IPO.
Flo is our Meme King, but this week, his meme game was great again. His comment was: “This will get the stock moving.” It’s hilarious.
This is not a meme, but I found it funny enough to include it here.
Nvidia had its earnings this week. This meme played on that.
Brad from Stock Market Nerd also had a funny meme. The new favorite hedge fund trader is Leopold Aschenbrenner (first pic).
This is not the meme, but funny anyway, because it’s true.
Interesting Podcasts Or Books
It’s been a while since I shared a book here. Not that I stopped reading, but I also read a lot about other subjects. For example, I just finished The Obesity Code by Jason Fung. It really helped me to better understand GLP-1s. Not that that is the subject, not at all. But if you understand the problem better, you understand the solution better.
I also read about many other subjects and also novels, usually combining five books or more at the same time.
But before I share a book here, it should have something to do with investing. If you want me to change that, let me know.
In 2024, I read The Power Law by Sebastian Mallaby. The subtitle says it all: Venture Capital and the Making of the New Future.
It may sound a bit boring, maybe, but it’s a phenomenal book.
That’s why I also didn’t hesitate to buy Mallaby’s new book The Infinity Machine. Again, the subtitle says what it’s about: Demis Hassabis, DeepMind, and the Quest for Superintelligence. I only started it yesterday, but it starts out really great.
The markets in the past week
So, what did the markets do in the past week?
The Russell 2000 is almost always the most volatile index and that was the case again this week. It jumped 2.72%. The S&P 500 was up 0.88% and the Nasdaq 0.45%.
The Greed & Fear Index remained in Greed territory.
Quick Facts
1. AI Bubble Signs
Let me show you a chart that bothers me more than I would like. The Information put together the spending commitments of OpenAI and Anthropic to the four big U.S. cloud providers, as a share of those providers’ total revenue backlog.
OpenAI alone has committed $280B to Microsoft and $300B to Oracle. Anthropic has $100B at Amazon and $200B at Google. Add it up and these two companies make up 43% to 54% of the entire revenue backlog at Microsoft, Oracle, Google, and Amazon.
Read that as what it is. Half the future revenue of these giants comes from two companies that don’t make any money. Anthropic spends about $3 to make $1, and that’s before staff, before electricity, before anything. Microsoft put $300B into capex and realized $18B in AI revenue.
You know me, I’m not a doomthinker. But I also don’t live with my head in the clouds. I know that these huge companies have gigantic resources. So, I’m not saying they will crack. But what if OpenAI gets into trouble, for example?
We already know about the circle. Everybody’s revenue is everybody else’s cost. OpenAI buys from Microsoft and they buy from Nvidia. Meanwhile, many enterprises paying for this are burning their annual AI budgets in four months with no measurable return.
I’m not saying it ends tomorrow. These things run far longer than you would think. But there are other signs as well.
2. DeepSeek Moment 2.0?
Something else that makes the AI ecosystem look fragile is this. It comes from the same player that first shocked the world with its much cheaper and technically differentiated AI. This is what it announced this week.
If you are a paid subscriber already, you can just scroll past this. If you are not, please read this.
When you join Potential Multibaggers now, you get my entire investment system:
✅ Best Buys Now: every month, the 5 best stocks to buy
✅ My Proprietary Quality Score: rating companies on 17 quality metrics nobody else uses
✅ Deep Earnings Analysis: thorough breakdowns that reveal what really matters
✅ Valuations & Buy/Hold/Sell scales: cut through the noise and know exactly when to act
✅ 15,000+ Word Deep Dives: each pick gets 4-5 extensive articles so you understand exactly what you own.
✅ Private Community: direct access to me and 800+ serious long-term investors.