00:05 Speaker A
Now, time for some of today’s trending tickers. We’re watching Palantir, CoreWeave and Meta, and BlackBerry, and Jake Conley is with me now to talk about these.
00:14 Speaker A
Um let’s talk about Palantir first of all. Now, it’s interesting, the stock was down yesterday, even when the market was up. It’s down again today. So, down about 6% yesterday, down about 7% today. Um and Michael Burry, well-known investor,
00:28 Jake Conley
Famed investor.
00:28 Speaker A
he has already, you know, sort of come out negatively on the stock in the past.
00:33 Jake Conley
Right.
00:33 Speaker A
And then he seemed to re-up, but then the tweet was deleted. Like, what what’s go what happened?
00:36 Jake Conley
He took the post down, it seems. It’s also it would be very out of character to see Michael Burry back away from a position.
00:43 Speaker A
That’s right.
00:43 Jake Conley
He’s known for sticking to his guns, right? And
00:46 Speaker A
Sticking to his guns. Yes.
00:46 Jake Conley
this is not a new position as you point out. He’s had, he published, published the, published the fact that he’s short on Palantir back in September in pretty relative size. He’s been very critical of Alex Karp and Palantir since then. So it was a bit of a shocker to me to see him seemingly back down. Now his argument is that Palantir is going to lose some of their government and military market share to Anthropic.
01:14 Jake Conley
Obviously, Anthropic is in its own battle with the Department of Defense, Department of War right now. But notably, the Anthropic software, Claude was the first major AI model to be embedded in classified operations. We saw it used in the Venezuela raid that took out Nicholas Maduro.
01:29 Jake Conley
Palantir has the history here. They’re deeply, deeply embedded throughout the military. But it’s it’s again, it’s just weird to me to see Michael Burry back away from a call.
01:38 Speaker A
Right. That he came back. I mean, and who knows what happened behind the scenes, but it is also interesting that the stock is still down as sharply as it is.
01:44 Jake Conley
Down anyway. Right.
01:44 Speaker A
So, you know, that that part like with anything with these stocks, like some of it is probably maybe fundamental, but a lot of it is positioning, you know, how much is the stock shorted, how much, you know, where are people where do people stand on it?
01:53 Jake Conley
And you see people pointing out that a lot of algorithms are now tuned just to trade off whatever Michael Burry says. Right?
01:59 Speaker A
Right.
01:59 Jake Conley
If Michael Burry puts out a post that’s even mildly bearish on Palantir, a bunch of algorithms are going to sell off.
02:03 Speaker A
Right. Just automatically.
02:04 Jake Conley
So, so yes, there’s definitely a little bit of at least a little bit of that going on.
02:08 Speaker A
All right, next up, let’s talk about CoreWeave and Meta. Um, they are expanding or it’s a new contract, but it’s an expansion of the relationship with
02:16 Jake Conley
$21 billion.
02:16 Speaker A
$21 billion. That’s right. Um, and this, um, you know, we were talking this morning, Miles Edelin and I about how this is like sort of back to regularly scheduled programming, you know, the war seems to be winding to a close or at least a different point, and so now we’ve got all these kinds of announcements resuming.
02:32 Jake Conley
Right. This this is the the resurgence of tech that the market’s been waiting for, right? You see some of these deals getting signed. As you point out, this is not new for CoreWeave and Meta. It is coming though, notably right after Meta just released its new superintelligence AI model, new Spark.
02:45 Jake Conley
I’ve seen some strategists making the very smart point that Meta has been spending a lot of money. They’ve been spending money on talent, they’ve been spending money on compute and it feels like they’re still kind of just barely keeping up with Google, with OpenAI, with Anthropic. So does this deal with CoreWeave, does the expanded compute capacity allow them to stay being a dog in that fight? I think that’s what they’re hoping for. Uh the market certainly liked it for CoreWeave.
03:14 Speaker A
Well, and there, I mean, this at a time when it’s becoming more obvious like people are running up into limits in some of these models, right, on their usage. And so, I think it’s becoming even more clear to just the lay person user, the limits of compute.
03:28 Jake Conley
There are hard limits here. This is you hear about the AI infrastructure that’s not only electricity, which we you and I talk about all the time, but it’s compute capacity.
03:34 Speaker A
Right.
03:35 Jake Conley
Can you get chips? Can you get data center availability and access? Also, I think worth pointing out, a lot of CoreWeave’s data centers are run off Nvidia chips. All roads lead back to Nvidia.
03:45 Speaker A
Yeah. Yeah.
03:45 Jake Conley
But to your point, it’s not just the tech people who are saying there are going to be limits here. The wider retail investor base, everyone’s realizing there are hard limits. And they’re spending a lot of money when we don’t know if demand is going to show up. We we’ve kind of been assuming it is.
04:00 Speaker A
Well, demand is already there. So the question is how much more demand will grow? And that assumption is that the sky’s the limit. I suppose.
04:05 Jake Conley
That’s it’s exponential, right, which I think is it’s certainly an assumption to make.
04:08 Speaker A
Well, here’s one thing that seemed um intractable, right, when it was all the rage, the BlackBerry. BlackBerry’s still around. The company is still around. Um although the company doesn’t make BlackBerry’s anymore. It’s it’s no, it’s more sort of a security and software company. Um and the shares are higher by 12% here this morning.
04:27 Jake Conley
Right. Yeah, good earnings. Beat on revenue, beat on adjusted EPS, forecasting fiscal 2027 revenue above expectations. This was a great quarter for BlackBerry. You’ve seen them over the last few years, the stock’s been kind of floundering. They brought in new management and I was reading through the earnings call this morning. I want to quote from here. The CEO John Giamatteo says, ‘We promised a turnaround to transform BlackBerry into a profitable growth company, and I’m pleased to report we’ve done exactly that. The turnaround is complete. BlackBerry is now a growth story.’
04:55 Speaker A
Okay.
04:56 Jake Conley
And it’s the it’s the AI argument, right?
04:58 Speaker A
I mean, it’s it’s today it’s trading like a growth story. We’ll see if that continues.
05:01 Jake Conley
Right. It’s the AI argument. They’re in cars with the Q&X business, what they call it for uh embedded AI. This is cars. They just they announced a deal with Johnson & Johnson. They’re powering a, I want to get this right, an AI driven heart pump
05:15 Speaker A
Oh.
05:15 Jake Conley
that Johnson & Johnson is operating. So BlackBerry’s moving into what we think of as the physical AI space, right? Embedded technology that they were talking a lot about robotics on the call and wanting to get ahead of that as the next kind of frontier of what we can do with AI. And for BlackBerry, obviously, they have the the software side, the communication side, but it seems to me like the management is really trying to lean into the AI story and try to, you know, hitch their wagon to that one.
05:39 Speaker A
Right. I wonder if they change their name at some point.
05:42 Jake Conley
You think they like,
05:43 Speaker A
There is I mean, I wonder if I still have a, I was just thinking, I wonder if I have a BlackBerry still in a in a drawer somewhere.
05:48 Jake Conley
My my my dad has one laying around that like he, you know, hasn’t used in 10 years, but it’s in the it’s in the a shelf somewhere.
05:54 Speaker A
It’s, you know, in the tech graveyard in the house.
05:56 Jake Conley
Exactly. In the in that bin, right in the kitchen. Yeah, yeah.