“Nike and Lululemon are two turnaround stories that are just not turning.”
Short Lululemon: the apparel brand is being pitched as a turnaround story, but the turnaround is simply not materializing as the stock continues to bleed.
“The hyperscalers, Amazon, Meta, Oracle, Google, and Microsoft were all down on Thursday... the new capital intensity of the hyperscalers combined with the lack of moes has destroyed the momentum in th”
Short Amazon: the hyperscaler's massive AI capital expenditures are not creating a protective moat, setting the stage for future price wars and low returns on capital.
“The hyperscalers, Amazon, Meta, Oracle, Google, and Microsoft were all down on Thursday... the new capital intensity of the hyperscalers combined with the lack of moes has destroyed the momentum in th”
Short Oracle: as a hyperscaler, its insatiable need for capital to build out AI infrastructure lacks a corresponding franchise moat, destroying the stock's momentum.
“a lot has changed in the world of cannabis over the past few months. All for the better, and we explore it all. Also, the company just announced it will be listed on the New York Stock Exchange becaus”
Long Glass House Brands: the cannabis world has changed for the better and the company is uplisting to the NYSE following the rescheduling of medical cannabis to class 3.
“The fear about this sector is that AI will reduce the need for consulting services. Essential's results did absolutely nothing to alleviate those fears... management says what seems to be happening is”
Short Accenture: AI is reducing the need for consulting services, leading to weak net results and a disastrous quarter where the company appears to be buying acquisitions just to hide its underlying weakness.
“Netflix seems to have completely lost its mojo, down 25%. I suppose Netflix's growth story no longer seems that powerful.”
Short Netflix: the streaming giant has completely lost its mojo and its growth story no longer appears powerful enough to support the stock.
“This deal is another example of GEV's bundled offering of turbines and electrification equipment. GEV remains, in my view, one of the better AI power stories.”
Long GE Vernova: the company's bundled offering of turbines and electrification equipment, highlighted by a 20-year Microsoft data center deal, makes it one of the best AI power plays.
“Nike has been a turnaround story for 2 years that has not turned around... there is just no evidence that the turnaround is taking hold. Quite the opposite, actually.”
Short Nike: the company has been pitched as a turnaround story for two years, but there is absolutely no evidence that the turnaround is actually taking hold.
“The result is that European economic growth has become sclerotic... I said last week that I would not invest in Europe”
Short Europe: the region is far too regulated and its economic growth has become sclerotic compared to the US, making it uninvestable.
“These negative changes to the hyperscaler story were partially driven home on Monday when it was reported that two Google senior officers left to go to open AI and anthropic. Google's co-head of its G”
Short Google: the hyperscaler story is deteriorating as capital intensity rises without moats, specifically highlighted by the loss of senior Gemini and DeepMind engineers to rivals.
“It is just a plain fact that the US economy is more dynamic than Europe... you will make a lot more money if you invest in the US.”
Long the US market: the US economy is far more dynamic than Europe's, meaning investors will make a lot more money allocating capital domestically.
“The payment space remains a place to avoid... PayPal was down 6%. Just about every payment stock was down for the second quarter.”
Short PayPal: the entire payment space remains a place to avoid as the sector continues to struggle and investors rotate away from these business models.
“The hyperscalers, Amazon, Meta, Oracle, Google, and Microsoft were all down on Thursday... the new capital intensity of the hyperscalers combined with the lack of moes has destroyed the momentum in th”
Short Meta: the company is pouring capital into LLMs and agentic AI apps without any product differentiation, making its massive AI spend a race to the bottom.
“investors have sought out beneficiaries of this capex spend. Generally, they have chased scarcity. And where is their scarcity? In semiconductors of all kinds.”
Long semiconductors: hyperscalers have insatiable capital needs for AI, and investors are correctly chasing the scarcity beneficiaries which are semiconductors of all kinds.
“They think oil prices will be dropping due to over supply.”
Short oil: guest experts predict that oil prices will be dropping due to an impending oversupply in the market.
“The payment space remains a place to avoid. Fiserve was down 14%. As its CEO resigned to become the CEO of Truist”
Short Fiserv: the payment space remains a place to avoid entirely, a structural weakness exacerbated by the company's CEO resigning to join Truist.
“Because of the growth in AI data centers, there is a shortage of every kind of semiconductor... The company reported EPS for the quarter of $251, which was a get this 1,215% year-over-year increase...”
Long Micron: AI data center growth has created a massive semiconductor shortage, driving a 1,215% earnings increase while the stock still trades at a cheap 8.7 times 2027 PE with supply constrained past 2027.
“The hyperscalers, Amazon, Meta, Oracle, Google, and Microsoft were all down on Thursday... the new capital intensity of the hyperscalers combined with the lack of moes has destroyed the momentum in th”
Short Microsoft: despite its massive AI investments, the lack of moats means users can migrate at will, turning its capital-intensive model into a scary proposition for investors.
“Domino's continues to suffer from the low-end consumer pulling back.”
Short Domino's: the pizza chain continues to suffer and lose stock momentum as the low-end consumer pulls back on spending.