To The Moon

News and my thoughts from the past week (06Jul2026)

The ability to innovate does not always translate to the ability to lead or manage. It can be a lapse or a flaw. Knowing the difference is important.

Meta employees consumed 73.7 trillion AI tokens in a single month. That costs roughly $221 million a month, or $2.65 billion a year. The median Meta employee makes $388,200. At that rate, the token spend alone could pay for about 6,800 engineers for a full year. - X user Hedgie

Half of investors have reduced their portfolio risk, while 62% expect a recession and 71% worry market volatility will hurt their finances. Gen Z is the most concerned, citing job security and weaker savings, per Allianz. - X user Unusual Whales

Google reportedly doesn't have enough AI capacity to meet demand - Z user Kalshi

When AI becomes a commodity, what is the valuation of the AI, data center, energy, maintenance, supply chain and skilled labour?

insider sales

My Investing Muse (06Jul2026)

Layoffs, closures and Delinquencies

Microsoft reportedly plans to lay off over 5,000 employees - X user Kalshi Finance

Summary of layoff news (Gemini, Grok & Kimi)

The midyear turning point arrived with a heavy hand, casting a quiet chill across the global workforce as the first week of July drew to a close. Over 154,000 tech souls have now been cast adrift in the year’s opening act, swept away by a rising corporate tide that seeks to fund the hollow chambers of artificial intelligence and the sleek promise of automated pods.

Microsoft set the sombre tone, parting with 5,500 creators and advisors across sales, consulting, and its fading Xbox gaming empire. Nearby, the smoke cleared at British American Tobacco to reveal a staggering loss of 9,000 jobs—a fifth of its kingdom sacrificed to defend the bottom line against shifting cultural winds. Smaller houses felt the tremor too, as Elementor shattered 30% of its foundation to rebuild around automated code, and Nationwide cut 600 ties in the wake of a corporate marriage.

This is the repricing of human effort, a quiet symphony of downsizing where middle management fades, and the cold efficiency of the algorithm begins its long, unyielding march into the corridors of finance.

Leverage and risk

Recent data shows the US leads global equity leverage with $1.42 trillion in margin debt (May 2026), or roughly 1.8–2.0% of market cap, though the growth path included dips in February and March rather than consecutive increases. China follows at ~$416 billion (~2.6% of market cap), still below its 2015 peak. South Korea’s strict brokerage margin loans stand at ~$23–26 billion, but broader retail leveraged exposure (including bank credit) reaches ~$39 billion+, creating higher effective risk amid heavy concentration in Samsung and SK Hynix. Taiwan’s margin debt surged 160% to ~$19 billion. Japan and India show lower ratios (~0.5% and 0.3%).

A margin call occurs when falling stock prices reduce an investor’s equity below the broker’s maintenance requirement, triggering demands for more funds or forced sales. Overall, absolute leverage is highest in the US and China, while rapid growth and retail concentration elevate risks in Korea and Taiwan despite lower ratios. Leverage amplifies both gains and losses, warranting caution in overheated segments.

Financial Strategy and Outlook

Let us spend within our means, invest only what we can afford to lose, and avoid leverage. Let us review our current holdings and divest from businesses losing their competitive advantages. Additionally, I will consider adding both hedging strategies and defensive positions to our portfolio to mitigate risk.

As we move forward, it is crucial to conduct thorough due diligence before assuming any new responsibilities.

Wishing everyone a successful week ahead.

@TigerStars

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