Mag 7 sell-off, Wiz rejects Google, UBI, Kamala in, China's nuclear buildout, Sacks responds to PG

in this past quarter, they're running at a $1.2 billion operating profit out of GCP. So, if you kind of think about what cloud margin should be over time and kind of call it 20 to 30% margin, this cloud business could be generating 20 to $30 billion a year of free cashflow.

YouTube and GCP are the two money printing machines inside the organization that have actually paid off.

So I think that Fox already has a problem where they are becoming misaligned with their audience. And regards to what you think of the politics, this is bad for business.

We talk a lot about wanting to onshore manufacturing in the US., build out new manufacturing technologies, but ultimately all of these industries, particularly AI., are going to be driven by the cost of power.

And the downstream is they can power more H100s, run bigger jobs.

Similarly, I had my IT department check and make sure that we didn't have it running anywhere and we don't. I'm just gonna be frank, I don't trust this company.

I think it just goes to show you how bad security is in the cloud and how needed it is. So it doesn't surprise me that Google wouldn't buy something like this. I think Amazon and Microsoft would probably want something like it as well.

if Wiz continues to grow at this rate, it's conceivable they could be in the range of a Palo Alto Network's $100 billion market cap in a couple of years, given this momentum and if you progress it forward.

I have shares in the company. I think it's a good investment.

I mean, I don't think the process was super open and transparent and democratic, but I don't think they had much of a choice. And I think we've talked about that because too much of the money would have had to essentially been returned.

the Kamala Harris de facto nomination that took place over 48 hours, I think was a little bit shocking to a lot of people I've spoken with, that there wasn't a bit more of a process to identify a nominee besides Kamala that effectively the party lined up.

There was no open convention. What happened is the delegates fell in line instantly, as I predicted

So the only solution is to rewrite the regulation?

We have to get nuclear going in the United States, and these systems are safe. They are scalable.

And so what you actually saw was a huge rotation out of those companies into everything, but those seven names.

So I think it's just a rebalancing. And as a result of the high concentration of the MAG-7 and the S&P and in the Qs, the indices look like they're coming down.

Sure, I just don't want to overreact or over read into one day in the market. I mean, today's up, yesterday was down. These are blips in the grand scheme of things.

Well, all the cloud service providers are doing extremely well. I mean, cloud is still the future of software, and the cloud service providers are still growing really strongly.

The multiples that we have right now are not that insane. I mean, I think the long-term median software multiple is around a seven. So, you know, you see here the mid-growth median 7.7. We're about tracking at the historical pre-COVID mean, and we had that really frothy bubbly period in 2020, and 2021, and that's clearly over.

No, I think it's definitely this mini AI bubble deflating a bit.

China has more electricity production. It's cheaper to make electricity and it's cheaper to build new capacity and they're building at an accelerated rate.

On Wiz, I think the most likely explanation is that they just want to keep building this as a standalone company. I think they're probably also worried that they can't get the deal through.

Google wants to accelerate beyond AWS. They want to become the leader and they're going to look for other sizable transactions that will pass antitrust muster.

You don't think that distributed energy can basically deliver effectively energy at a marginal cost of zero?

And we have to have this ability to more rapidly kind of accelerate high power output systems like nuclear. Because while solar is great, it's a low power output. You need much more volume.

And then the whole consumer cycle, the consumer credit cycle, that doesn't look good, to be honest. And so I think the fall is going to be complicated.

I think that when you see a broad-based set of revenue misses, that will kind of mean that the consumer is really under pressure. I still think that that's more in the fall, but we're headed in that direction.

But look, Harris has more upside than Biden does because she can actually campaign. I mean, Biden clearly was a surefire loser.