💬New thread from Philoinvestor

Negotiations collapse and Trump is back to escalation rhetoric.

“We will naval blockade Iran if Hormuz doesn’t open”

From Iran: “If Trump takes any action against the Strait of Hormuz.. he will also lose the Bab el-Mandeb Strait.”

That takes Saudi’s capacity to export oil to literally Zero. Expect the Yemeni front to open soon.

Nasdaq only down 0.50% now but WTI up 10% to $105.

Back to the peculiar spread we referenced last week. Crude is pricing in more death and destruction while stocks continue looking for business as usual.

US Military logistical movements show they are reloading for another round, while the Iranians are confident to keep going. I don’t even understand why negotiations happened.

Neoclouds and AI: Big announcements last week with Anthropic and META securing compute from CRWV, while NBIS is in talks with another AI startup for more M&A.

This supported both their stocks, resulting in rallies end of week. As always, a tailwind for NVDA.

--> We expanded on this dimension in this piece. (The Central Bank of NVDA)

Nothing structural changing on the economics aside, Data Centers are capital-intensive, commodity-type businesses.

"The ROI is in the valuations"

In fact, CRWV insiders have sold over $5bln in stock, that’s the real trade for CRWV. See featured image.