Hey everybody, welcome back to the channel. We are back on another episode of the daily recap. Thank you everybody for being here. It is officially Monday, brand new start to the week.

First of all, I just want to say thank you to everyone who reached out and said happy birthday today. Really means a ton.

We got to celebrate it on the market open, market close, did a giveaway on the close and that was really fun.

And yeah, I spent a lot of time talking about it on the open and the close, but just deeply, deeply, deeply, deeply appreciate the position that I'm in in life.

And you know, as I get older, 28 years old, start to reflect a lot more on what has been happening in life.

And you know, the community we built over the past couple years, it truly means everything to me. So, I just really appreciate everyone that reached out.

Thank you all for the birthday wishes. Your boy is 28. Two years from the dirty 30s.

I know a lot of people watching are probably much older than 28, but you guys have basically seen me grow up over the next five years, and hopefully we'll continue to see me grow up coming into the future.

We got a lot to talk about today. Palanteer, big new contract, massive contract.

Also, new all-time highs on Palunteer.

It was a very nice birthday present. So, thank you, Palanteer.

So we'll talk about what's going on with Palanteer.

Tassy got some upgrades on the street.

Street's getting a lot more excited about where autonomous vehicles are going, and that's why you saw Tesla get a bit of a 5% move today.

Some semiconductor companies are starting to pop up and potentially challenge some of the other incumbents in the space.

So, we'll talk a bit more about that.

And then the broader macro.

I mean, we have all-time highs on the S&P 500, up 1% on the day.

Pretty much every stock has been relatively green today.

There were some pockets of the market today that were red, but overall, it was a pretty strong green day for the markets.

And we're going to talk a little bit more about macro and what that means going into the end of the year and kind of my overall thoughts on the nature of this bull market.

So, thank you everybody for being here. Thank you again for the happy birthday wishes. Let's get into it.

All right, let's start off with Palunteer and then we'll get into the macro and what's kind of going on.

First of all, Palanteer, massive day. Congratulations shareholders.

One of the reasons why I am even in the position I'm in today is because of Palanteer and choosing to analyze this company when it was a much smaller company.

And obviously it has completely changed my life, changed so many of our lives.

And you got Palanteer that had a pretty strong day.

Now it hit 1928 at one point which is pretty incredible.

Didn't close at 192, closed at 189.

Now why did that happen today? Well there's a couple reasons.

Number one, we talked about this last week. Karp did a new interview on Fox Business and they had a $200 million partnership with Lumen which was very, very important.

Obviously Lumen is a massive company in the government space and the contracts that they've been able to work on with Palare has started to really influence the way that Pounder thinks of their go to market particularly with working with some of these other thirdparty companies when it comes to servicing and being a vendor and distributor for a lot of different contracts.

And you know from Pounders perspective the data analytics play for those vendor and distributors.

Today they signed a new agreement with Poland's Ministry of Defense.

Here's what Pounder said. Pouchers committed to Poland and proud to deepen our partnership with the Ministry of Defense. Today's agreement paves the way for Poucher's AI enabled defense technology to begin rapidly supporting the country's armed forces as they innovate at the forefront of an increasingly complex threat environment and strengthen Poland's position as a sovereign leader in defense.

So, this was a letter of intent to work with Poland's defense ministry.

We've seen that pound started to really expand their work with the international governments across the world.

The UK just gave them a billion dollar contract, the Ministry of Defense back in end of September, early October.

So, that was very good to see.

And obviously Palers's work with the government in the United States has continued to expand aggressively as more and more of what they're doing with the government becomes something that the government says, "Hey, you know, we need to be able to buy the software to work with."

Russia, Ukraine, obviously everything that's been going on has led to a lot of these other countries recognizing maybe it's time for us to potentially wonder if we were to get invaded or if our sovereignty was threatened, what would we do?

And the Poland deputy prime minister today said because those who threaten Poland know that we have the best data processing system, they will think twice before taking the next step.

I think this is really important because at the end of the day, one of my bull cases for Pounder was that they're going to become the operating system of the West.

Not only do they defend Western values, not only are they unapologetic on the defense of Western values, which is why Palanteer is never sold to Russian China.

20 years later kind of made sense to not work with Russia and China because now if you work with Russia and China you're seen as a liability.

But Palanteer has been a staunch supporter of of uh of the West and they've supported the ideas and values and concepts of the West.

So Poland is just another extension of Palanter's philosophy in terms of wanting to work with countries that potentially could have their sovereignty threatened and I think it makes a lot of sense.

We've known that Palanter has been obviously working with everything they've done in Ukraine, Lithuania, Kart mentioned, a lot of the Asian governments over the past couple years.

The Japanese government in particular potentially has started to get more curious about Palanteer software.

I think the government business is going to keep growing and as a result of the government business keep that that continues to grow.

The international expansion into the commercial sector, which by the way in the United Kingdom, a lot of their international commercial customers came from beginning to work with the Ministry of Defense.

I mean, it really is easier to, you know, sell a customer on a deal if you're working with the country's government.

And so, I think that makes a lot more sense.

Now, in terms of the stock, look, I've been buying at 171, 173, even at 180 I bought.

I never thought I would say I'm buying at these levels, but I'm kind of just doing the math in my head on the growth rate that they're going to put up.

And I'll do a more in-depth counter preview episode later.

I think they're going to grow more than 50%.

I think they're going to increase guidance.

I think operating margins are going to continue to grow.

Karp has sounded pretty excited to say the least about how they're growing and where their trajectory of growth is.

I am not immune to the fact that the valuation is aggressive.

I understand that and I understand I'm buying into an expensive company and that the stock could fall and it is what it is.

But I also have a pretty nice margin of safety given I've been in the stock for a long time.

And quite frankly sometimes your best ideas are the ideas that you got into early.

And so I understand the market cap is elevated, but I also think that a run to 200 is not crazy after a bombastic earnings that they can deliver.

Especially because it will continue to validate to the street. There is no other software company that is growing more than 50%. There's no other software company utilizing AI that's growing 50% with the margins that Paltor has.

By the way, sticky revenue, not really contextual to the market, but once they lock you in, they lock you in and that continues to compound.

So with a rule of 80, I think this is going to be a good quarter.

I don't know what happens to the stock.

I did buy the dip last week.

And yeah, congratulations to everyone.

Alltime highs on pounder and we will get to continue seeing how the story unfolds as we get into earnings going into next week.

Okay, let's talk macro because we got a lot of stuff going on in the world of macro.

First of all, what caused the bright green that we saw over the past 24 hours?

And the answer to that question lies in what Scott Bent said over the weekend.

What does Scott Bent say, the US Treasury Secretary?

Well, he was in Malaysia with a meeting with the prime minister of trade in and their representative Lee in China or from China.

And the conversations were really good.

I mean we didn't get that many specifics on the conversations outside of the fact that the rare earth minerals and metals.

Which by the way the reason why those stocks declined today is because it looks like the China tensions are not that aggressive.

So the domestic producers of the rare earth companies are not that rare ironically.

And so if we're going to keep exporting from China then you know we might not have that much demand at least in the short term for the elevated valuations for some of those other companies like an MP or a US AR etc.

So the exports is not that big of a deal anymore in terms of export controls trade negotiations.

Bas said we have a meaningful framework to be able to engage with the Chinese and it is setting up the November 1st meeting between Trump and Xi in South Korea.

And if that meeting goes well then the markets are potentially going to be pricing at a trade deal.

So, I think this is why we've had some fun over the past 24 hours.

I mean, the S&P 500 again, the reason we took that 3% draw down on October 10th is because of the Trump China tweet.

And quite frankly, as I've been thinking about it over the past 24 hours, I think it's not really because of that tweet.

And as a result of that tweet, you had the windfall of stocks finally taking a breather, which in August they didn't take a breather. In September, they didn't take a breather. In the summer, they didn't take a breather.

The last time they took a breather literally was April when we had a 2% down day.

It was five months until we had that draw down until October 10th.

Now, what does this mean for the broader market?

You've got rate cuts coming up on Wednesday.

I'll be live pretty much all day on Wednesday, so that's going to be a massive day.

We don't know if we're getting rate cuts, but there's like a 97% chance we're getting rate cuts.

You have earnings growth Wednesday.

We also have Microsoft, Google, and Meta.

I don't know how we're going to manage that on the market close, but we've got all those earnings.

So, we'll be taking a look at that.

So you got earnings growth that's coming up from the big tech companies.

So far, earnings have been pretty good across the board.

We talked about that last week.

You've got rate cuts coming and then you got trillions of dollars on the sideline.

That is likely going to want to get some exposure to what's going on in the stock market if the earnings continue to do well.

Not to mention, you also had a draw down of 3% on the S&P 500.

So, individual names took, you know, a 10 to 15% hit.

But that was just the good companies like a Robin and a Nebius, which have started to recover very well.

The companies that aren't as fundamentally sound.

And I'm not saying they're bad companies. I'm not saying they're they're piles of I I I am.

I am just saying objectively like when you don't have any earnings and revenue and you're getting a, you know, 20 30 billion dollar market cap. The question is why?

Like really, what is out there that's creating all this momentum, all this capital flowing into the the company itself?

Is it hype? Is it a narrative? Or is it the idea that there will be projected massive earnings growth in the future?

And the street wants to pull that forward, which by the way, the street does that on Tesla.

It's just Tesla also does hundred billion dollars in revenue and has 40 billion in cash.

The street does that with Apple.

It's just that Apple buys back $100 billion dollars of stock and it's Apple.

It's one of the most important companies on the planet.

So seeing these smaller companies get these multiples and then get a draw down that has been pretty aggressive.

I said it last week and I I I don't mean to sound like someone who wants these companies to fail.

I have no shorts. I have no puts. Nothing like that.

It doesn't really make my life better if these companies go down.

I just think as a as as a broad market participant, it is healthy and I think many people agree with this to see some of these names lose some of the froth.

Because when that froth is in the system, the problem is it messes up the entire market.

Now, it likely won't have an impact on Nvidia and Amazon and all these other companies, but the problem is when there's that much euphoria and excitement, we've seen this happen over and over again over the past hundred years in the stock market, you tend to get massive drawdowns.

As too much money finds too much speculation, that speculation leads to disaster.

So, what I think has happened over the past couple weeks, which is actually very healthy, is that a lot of that speculation came down the drain.

Some of those stocks might never get back to all-time highs.

Some of them might. And some of them are recovering.

Like Oaklo, for example, went all the way down to 118.

I think it closed today at 137.

Its all-time high was 195.

And at 137, it's still up 500% year to date.

So, it's not like I think anyone's complaining about the fact that they're an Oaklo unless you bought at 195, which is, you know, if you bought at the top or at the short-term top.

It's just one of those things where, you know, you bought really high.

Same thing with MP Materials, right?

If you bought a rare earth company at 95 bucks and now it's at 60, it's like, you know, you kind of bought into the momentum and it is okay for that momentum to have a draw down.

Fact that the S&P 500 is back to all-time highs.

Google's at all-time highs.

Amazon's trying to push all-time highs.

And they've got a lot of these names that have recovered but not really recovered to me is very healthy for the broader for the broader like idea that the bull market can be healthy and continue because you're seeing that froth get taken out.

And that is okay.

And again, it's not to say these are bad companies.

It's not to say these companies can't succeed in the future.

It's just to say these companies haven't put up the earnings growth.

And unfortunately, if they don't continue to put up any earnings growth, which we have earnings coming up, and you know, if you just don't see really good solid earnings from any of these companies, I think the market is now in this, hey, we're not going to tolerate this type of mode.

Like, maybe these companies can put up nothing and just say, hey, give us another couple quarters, it's coming, and the market's okay with that.

But I think the market's also like, dude, Google's doing 115 billion of profits and Google still doesn't trade at a 30 times PE.

Google did hit an all-time high today.

Why are we buying this that is promising us revenue in the future?

And quite frankly, the market's not buying this.

It's a lot of retail that's buying this, but a lot of retail might start to recognize, why am I not buying Nvidia, Palenteer, and Tesla, and these, you know, even though those companies, you could say, have aggressive multiples, they are real, legit companies that are putting up earnings.

Even though those companies, you could say, have aggressive multiples, they are real, legit companies that are putting up earnings.

I can disagree with the multiple, but I can't disagree with the fact that they don't deserve a multiple.

And so I think the state of the markets that we're in right now is that if we have Fed cuts coming, we have earnings growth, we have China tensions that are potentially getting resolved, we have more geopolitical stability across the world, and we have a lot of the momentum that has been taken out.

Again, the reason I'm harping on this point, it's very important to understand in 2021, we had a meme stock ETF come out that was the top. It was the tippy top.

And then by the end of or by mid 2023 after the 2022 bare market 19% draw down on the S&P that meme stock ETF went away.

What happened a couple weeks ago that freaked a lot of you guys out.

The meme stock ETF came back.

And it freaked me out too because you know as someone who cares about the health of the bull market I'm just like bro like if if there's a literal ETF where you could trade meme stocks and it's getting a ton of trading volume that means there's a lot of people ready to chase more and more names.

I mean, literally, ticker symbol ASST went up 50% today because someone with 200,000 followers tweeted about it.

Again, when you have those things happening in the market, and I think most people that have been around at least for the past five years, even if you've only been through one cycle, you you you you know that's not the best sign in the world.

So, to see that froth come away and come down and the market continue to make a new all-time high, I think is incredible.

And if those names put up good earnings, they will probably get their multiples again or grow into their multiples because they deserve it.

They don't then they won't which is fine.

If Nvidia doesn't put up the growth Nvidia doesn't get a multiple either and and that's how it should be in the stock market.

If you can't grow if Grab which I love and I think can break out to $10 by next year if they can't put up the earnings growth they should not get a multiple.

So I think we're in a market that is relatively healthy and you know a lot of the bears that are listening to this are probably going to get mad at me for saying this but I do think that the draw down of momentum and people forcing themselves to ask themselves why do I own these names which everyone has to do regardless of whatever name you own like it forces you in a draw down to say is this a fundamental company I deserve to own that is what's been happening over the past couple weeks.

And as a result of going through those pains where you're able to now see some gains.

And so I think it has been a relatively strong cycle over the past two weeks.

November tends to be the best month of the year on average up about four and a half% going into the end of the year.

So I think we are entering into a good time and if we can get these earnings and rate cuts that should only continue to propel the bull market.

Okay, Tessy, let's talk about Tessy.

We got some pretty good updates in the world of Tesla.

Caner Fitzgerald raised the price target to 510.

Here's what they said. Tesla disclosed that volume production of its Cyber Cap, Semi and Mega Pack 3 are all on track for fiscal year 2026, which we see is significant.

Lastly, Tesla also disclosed that it expects a significant increase in capex for next year.

Overall, we remain bullish on Tesla over the medium to long-term, and we continue to see meaningful future upside from energy storage and deployment, FSD, RoboCap, Cyber, Robo Taxi, CyberCab, Semis, and Optimus Bots.

We maintained our overweight rating and recently increased our price target from 355 to 510.

That's a pretty big upgrade from Cancer Fitzgerald.

They're basically betting on the robo taxis and FSD story starting to materialize in 2026, which I think they're going to be right about.

I don't know how much that impacts earnings, but we will see some like more probably progress on like actual deals and things of that nature even if the earnings catalyst is in uh 2027.

So, that's really important.

Then you've got um Morgan Stanley's Adam Jonas who's been a Tesla analyst for a long time saying, "I'm calling it. Autonomous cars are solved.

Do I mean six or seven nines to the right of the decimal? No.

Perfection? Never.

But enough to pull the safety driver at scale in major metros."

Here's what he said. From our discussions with Tesla, it appears the only thing preventing Tesla from pulling a driver in its own abundance of caution.

Our understanding is that there is no explicit regulatory approval required to pull drivers in Texas.

A passive optical only AV system would seriously challenge the conventional thinking of many in the robo taxi community.

Tesla truly believes that the radar and ligard do not make its cars any safer.

It is our long-standing opinion that if you solve autonomy for cars, you solve autonomy for many of the other form factors of AI enabled robotics.

So, you've got a lot of these Wall Street guys coming out and saying, "Look, we know the earnings aren't that impressive.

We know they're growing negative 30% year-over-year, but Tesla is the manifestation of physical AI when it comes to robots and FSD.

I haven't tried FSD14 yet.

I do have to download it.

I know Elon said anyone has the chance now to use it and download it.

So, I'm excited to use it.

But, I mean, FSD is pretty damn good.

13.2.9 that I'm on doesn't seem like it's getting any worse.

And so, I think the argument actually makes a lot of sense from this perspective.

If you do solve autonomy, you probably solve the broader implications around AI that eventually are going to need to be solved in regards to things like, you know, other elements of physical AI like humanoid robotics.

The question then becomes for Tesla. Where does the earnings power come from?

And I don't think it's energy next year unless Tesla really blows it out the water.

But again, that's just not a significant part of the earnings growth.

I don't think it's FSD unless they sell a ton of cars.

And I know rates are coming down, but you know, the question is if that EV incentive is gone, is that going to be enough to get people to buy the cars which will allow them to even have a chance to opt into FSD?

So then the real and then I don't think it's optimist in 26.

So then the question becomes robo taxi.

And as Adam Jonas says if they can get rid of the driver in Austin then that really becomes helpful because now it's like a legit robo taxi network.

If they can expand to California, Nevada, New York, etc. that would be a big deal like Whimo's expanding.

It's just the Tesla expansion along with the ability to have a differentiated form of FSD compared to some of the competitors would be very important.

So I think that's actually the catalyst for 2026.

If you're excited about Tesla, you really need robo taxi to begin to scale and maybe 26 is not the year.

But it looks like and you know even based on the price action with robo taxi or with Tesla gapping up today, look at that 455 in the after hours.

I mean I think the reason it's doing that even it touched 418 back on the earnings day is simply based on the idea that the street knows this is the best way to get exposure to AI at least in the physical realm.

You know you got Nvidia, you got the capex build out, you got Google, Amazon, etc.

Tesla is going for the moonshot and if they can execute on the moonshot and Elon's very incentivized because he'll get a trillion dollars if he does that would not be the worst thing in the world for Tesla.

All right, last three updates right here and then we will be done for the day.

First of all, Robin got an upgrade from uh 105 to 161 by Compass Point.

Very similar to a lot of the other upgrades it's been getting over the past couple weeks into that 140 to 160 range.

And essentially the analyst said our 3Qbida forecast is 6% above the street and we are raising our 2026 EPS.

They acknowledge that Robin Hood trades at a premium.

Their argument is if Robin Hood can continue beating expectations, then that premium is justified and as a result, they continue to raise their price target.

Robin Hood almost back to 150.

It closed at 146 today. Got to 149.

So again, this goes back to my point about quality companies like the Hood from 150 to 120.

They had a momentum shakeddown which was good.

I don't think Robin Hood really deserved to get to 150 in a week, which is, you know, it would be a week and a half.

Which again, I say this as someone who has more than 10,000 shares of Robin Hood.

I I I love the company, but I also know from a health perspective, this thing needs to happen naturally with catalyst, with earnings growth, not just for the hell of it, because then it becomes a meme.

And I'm not interested in investing in memes.

I did that 5 years ago, got burned.

I'm sure a lot of people feel the same.

I want it to actually be more natural.

And so Robin Hood falling to 120, getting a lot of the weak hands out of the system that you know got into it for the wrong reasons and getting actual dip buyers to come in and having more of a catalyst aka S&P 500 continuing to do well, crypto continuing to do well and then getting closer to earnings.

So more people are, you know, looking at what numbers they could actually put up.

That is why it deserves to get back to alltime highs.

And then if they can crush earnings, they deserve to continue expanding their multiple.

But they got to crush earnings. They've got to show it off.

And I I I think that's going to be the most important thing as well.

Same thing for Nebius, which fell from 140 to 96, now recovering back to 125.

A lot of these companies that got hit are starting to come back, but they're coming back with a vengeance.

They're not just coming back for the hell of coming back.

And the companies that really got hit badly are coming back a little bit, but if there's no fundamentals, they might not continue to come back.

So, that was a really good upgrade on Robin.

I think we'll see more of them.

Google got upgraded to 300.

Anthropic is going to be buying a million more TPUs, which are Google's custom chips.

I mean, Google now $3.1 trillion company.

For those that bought at 150 during the year and you ignored the noise, give yourself a pat on the back.

I mean, you absolutely deserve the gains.

And Google doesn't look like they're slowing down.

If this thing has a three handle on it by the end of the year, it would be essentially a double from 150 to 300 in four months.

So Google continues to be one of the best Mac 7 names.

It is the second best Mac performing name, up 37% year-to date and 80% from the April lows.

And it continues to get upgraded by the street.

Uh, last two updates, one last thing on Google.

Google's officially purchasing nuclear power.

Bloomberg is reporting today that Next Era Energy, NE, ticker symbol, plans to restart a nuclear power plant in Iowa, and Google is competing to be the bidder for that nuclear power.

So, again, the data center energy names.

We're going to do a lot more of deep dives into energy stocks going into the end of the year, but I do think that 2026 will be an energy fuel theme.

And Google looks like they're going to start to buy more nuclear power.

They started investing $15 billion in India. Last week they said for data centers definitely looks like energy is going to be there.

Now there's a lot of energy names that are a bit expensive in my opinion.

So I'm trying to look for the real value in the energy names.

ENS is a the stock that I think a lot of people should look at as well.

I did a Twitter spaces on that a while ago.

I'll put that in the description for those that want to hear the audio version of it.

But that one's more in battery production.

Still important for energy.

Final update right here.

There is room for Qualcomm to generate significant AI inference related revenue longterm.

Rosenlat gives them a buy target at 225.

Now Qualcomm is one of those names that I'm sure a lot of people have heard about, but today if you were live in the market open, you saw this bad boy gap up 20%.

End of the day up only 11%. Went from 205 to 187.

Essentially, they introduced a couple new chips and people thought they were competitors to Nvidia and AMD.

Uh Rosenlat said, "We view today's announcement as a positive for the Qualcomm shares for the longer term.

For years, management strategy has been to diversify its end markets while growing its smartphone market share.

Landing a 200 megawatt deployment with Human is a very good step.

This is in Saudi Arabia.

In a new growth vector in AI inference data centers.

As a reminder, in May this year, AMD and Human announced a 500 megawatt deployment worth 10 billion.

While revenue details have not been provided, we expect Qualcomm's deployment with human to generate potentially two billion in revenue.

Deployment is expected to start in 26.

Inference stage AI market is expected to be 250 billion by 2030 and growing 20% annually.

I'm going to try to dig a little deeper into what the heck's going on with Qualcomm, but it does seem like, you know, these new chips bring up some questions of, hey, can they potentially take some market share from the AMDs, Nvidas of the world?

I think there's a massive market for old companies to survive, but you potentially have a new player that Rosenlat is bullish on.

Some of the other semiconductor analysts are like, well, this is not really replacing the MI450 or Blackwell.

Uh, but it's nice to see more and more semiconductor companies getting into the mix and continuing to prove that the AI capex buildout is not slowing down.

All right, that's it for me.

Thank you everybody for listening and watching.

Again, thank you for the happy birthday wishes.

Means the absolute world.

I cannot say from the bottom of my heart how much I am blessed to be in this position and I don't take it for granted.

You know, I worked really hard over the past four years to get here, but I also understand how much of a community has been formed and how much I care about serving that community every single day.

So, um just been an incredible ride, the ride of a lifetime.

Thank you to everyone who reached out.

It truly truly means so much to me.

And uh yeah, we're going to just keep it going.

Thank everybody.

Appreciate you all.

Love you all.