This is not surprising and I did see this happen when they first announced their last quarter results. The worry here is this did not just happen to Oracle, but also Marvell, Coreweave, Nividia, etc. All annouced sterling results which mostly beat revious results but also expectations of analyst. What this may suggest is, the market is completely out of sync with reality and much of today's valuation is really unrealistic. And also, the market is very very retail driven. This is dangerous as these are people who are mostly sheep following the calls of investment "gurus". And they are the ones who are buying with borrowed funds. Look what happened to the KOSPI last month to understand what is happening. And with the bond yields going nuts, plus Kezin Walsh now expected to raise rates, not o

Donald Trump may have to place Kevin Walsh under arrest now. Before he makes any decision....

It is not surprising to see this happen today. After Anthropic CEO, and supported by Musk AND Altman, saying that we need to slow down AI development.  I mean, both Musk and Altman agreeing on something? Seriously? What this may mean is the hypers will pause investments, meaning give less CAPEX buys. And this will hit those stocks which supply into this trade hugely. Especially as valuations are all the way past the moon already. Wednesday may be the nail that seals it. And September may turn out to be another bear month.

This is the part I am payong most attention to right now.  "a 5% yield on the 10-year Treasury note BX:TMUBMUSD10Y could tip the tide into a selloff." This is something we need to be aware of. The big money institution favors protection and returns as much as possible even as they love profit. A 5% treasury yield is guaranteed by the US Government.  This have the potential to suck up liquidity from the markets big time. And let's not forget the US is busy raising cash to save the Japanese ¥. As well as fund their Iran quagmire.

Larry probably feels his planned sale would probably tank the share price even more. But with Fed rate hikes expected, we are not sure this can help. Whatever the case, the sale would hurt the value of his remaining holding. 

Why would you be disappointed? It's long known that the US treasury have been in deficit for a long time. If your cash flow is negative, where would be able to raise capital to buy back debts? Only way is to raise even more debts to bay back old debts.  Hang on. Isn't this also a ponzi?

Like NVDA and MRVL, and also CRWV, AVGO is now in a state where the valuation ramp-up is getting more and more scrutinised. The very real fear is the amount of cash investments to bring the AI theme into real profitability is really way over. Why Jensen Huang and his party of funders are talking up with a promised capitalisation of 0.5 trillion, is they know this. Everything hinges on the operating AI models out there actually turning real profit. So far, no AI business has done this. And the real fear is it seems that the only way to get this profitable is to throw even more money into it. It's like that old joke about some businesses which never see daylights. How do you become a millionaire dealing in these? You first need to be a billionair.

Hang on. Didn't Najib Razak say the same thing...?

Google deal has promise, for sure. But it is a pull from Nividia and the entire AI movement that excites even more.  Jensen Huang has already pumped in a few billions into Marvell (and other AI support companies). And his interview with CNBC post-results announcement, he even said his big regret was not putting in more.  If his confidence is not misplaced, Marvell could very well be worth a trillion dollars before not too long. That's more 5x from here. How not to take a position now?