2026-06-29 22:24:29
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To investors,
The end of June marks halftime for the 2026 investment year. Unfortunately, this isn’t peewee football, so there will be no water break or orange slices for investors. If that wasn’t bad enough, we have to remember that many investors went into the year with significant exposure to the Mag 7, but those stocks have significantly lagged the performance of the 493 other stocks in the S&P index.
The good news? The month of July has been the best performing month in the stock market over the last 20 years, according to Ryan Detrick.
The folks at OddStats show that positive performance in the first half of the year during a midterm year has historically led to positive performance in the second half of the year. The second half median return has been 2.8% when the first half was green.
Interestingly, Jim Bianco shows that non-AI stocks are starting to be negatively correlated to AI stocks. He points out “over the last week or so, the $SPX is down ~2% (black). AI-related stocks (red) have slumped ~4.52%. This is ~50/75 of the S&P 500. Non-Al stocks (orange) have soared ~2.31%. This is ~425 to 450. Is this market telling us it is bullish for the economy if AI stocks get crushed?”
This is only short-term performance, so we need more data before we can conclusively determine how to use this in an investment process, but the recent development is worth continuing to watch. In the least shocking news ever, the permabears are out in full force predicting the next great Dot Com bust from AI.
Of course, none of the permabears want to acknowledge that forward P/E multiples are lower today than they were at the start of the year. Boring Biz writes:
“A lot of people continue to compare the AI cycle with the dot-com bubble, without realizing that the run-up has been driven by fundamental earnings growth, while the 2000s was mostly just hopes and dreams
Forward P/E multiples in tech have contracted even as stock prices have gone up this time around.”
I guess don’t let pesky facts get in the way of some fear porn to scare everyone into believing you are smart.
Before I go off on a passionate tangent about the permabears, let’s get back to the potential performance of the stock market going forward. We don’t need to look at history to get excited about the next six months. The US stock market is performing well because the underlying fundamentals of the leading businesses have been growing at a rapid pace.
James Thorne put it nicely when he wrote about the End of Financial Engineering:
“For the first time in over a decade, the center of gravity in American capitalism is shifting from financial engineering back to the real economy.
For years, the dominant corporate playbook was simple: keep capital expenditure lean, recycle excess cash into share buybacks, and let multiple expansion and shrinking share counts do the heavy lifting. Capex was treated as a drag; buybacks were hailed as shareholder discipline. That framework is now colliding with a new political and strategic reality.
Scott Bessent has given that shift its intellectual anchor, invoking Alexander Hamilton’s dictum that every nation ought to endeavor to possess within itself all the essentials of national supply. The point is not autarky. It is that a nation cannot remain prosperous, secure, and sovereign if it outsources the foundations of industrial power.”
If financial engineering is not going to be rewarded like it has been in the past, then where should investors look to put their capital? Thorne continues:
“The AI buildout makes the investment case obvious. Markets may punish rising capex and reduced buybacks, but that capital is not disappearing. It is moving into concrete, steel, copper, power, logistics, and machinery. The same is true of energy security, agricultural capacity, and domestic supply chains more broadly.
Investors who cling to the low-capex, high-buyback playbook are effectively betting on a shrinking productive base in a world that is relearning the value of physical capacity. The better opportunity is to invest where capital is now flowing: the companies and sectors building the real economy.”
The real economy. Companies building real things. Solving hard problems. That is where value has historically accrued. The days of financial engineering are evaporating and being replaced by productive assets that continue accelerating.
That is why the AI trade has been sustainable. This isn’t some woo-woo nonsense. It is being driven by real companies that are solving one of the biggest problems in society. Fade the trend at your own peril.
Hope you have a great start to your week. I will talk to everyone next time.
- Anthony J. Pompliano
Founder & CEO, ProCap Financial (Nasdaq: BRR)
Jordi Visser is a veteran macro investor with 30+ years of experience and the author of the VisserLabs Substack.
In this conversation, we break down the AI trade and why it's far from over, the memory shortage driving Micron, which AI models are winning and losing, how agentic loops are replacing white collar jobs, why bitcoin and the debasement trade are selling off — and what comes next.
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You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.
2026-06-26 21:48:17
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To investors,
All hell is about to break loose in the American AI model labs. They have previously enjoyed a dominate position in the market that allowed them to rent superhuman intelligence to billions of people and millions of businesses.
This is why Anthropic is rumored to be doing more than $50 billion in annual revenue with 15-20% free cash flow margin. You don’t accidentally build a company of that scale without having an oligopolistic position in the market. They were able to achieve this growth while OpenAI was growing to tens of billions in revenue, along with the stiff competition from Google’s Gemini, xAI’s Grok, and a few others.
But now there is a much, much bigger threat on the playing field: Chinese open-source models.
To understand what is happening, we first have to realize the problem that most companies have been facing over the last few months. Here is what I tweeted on May 22nd this year:
“There is a regime shift happening in how companies use AI models right now. Over the last year, founders and executives heavily encouraged their teams to adopt the technology. They created token leaderboards and pushed employees to get AI-pilled.
But then the expenses started to hit company financials.
Now executives are working to increase token efficiency. They still want their teams using AI models, but they are finding ways to cut overall token usage. The goal is no longer “use as many tokens as possible,” but rather “be as productive per token as possible.”
It may seem like a subtle change. It is not. Teams are re-writing their internal and external software to cut token usage, while increasing usage & productivity.
I see it inside our companies on a daily basis. For example, we have cut overall token usage at CFO Silvia but we have continued to grow the user base, assets, and total output.
This will be a major theme over the next 12 months.”
A month after that tweet, it seems that I drastically underestimated how fast and severe the pivot would be. Not only are companies looking to reduce token costs by changing their workflows or rewriting how their software uses American AI models, but now some companies are abandoning the closed-source models for a large portion of their work.
Rohan Paul writes:
“UBS says 60% of companies now watching AI budgets are moving to cheaper models and open-source Chinese models
The pressure is coming from extreme bills, including users spending up to $35K/month, teams exceeding quotas by 200%, and companies cutting internal AI tools from 5 to 2.
Companies are not abandoning AI, they are using model routing, which sends easy tasks to cheaper models and saves premium models for hard reasoning, code, and long-context work.
Chinese open-source models such as Qwen, DeepSeek, MiniMax, GLM, and Kimi now fit the enterprise cost curve because they can be run locally or used through cloud catalogs.”
So what do you do if you are an American AI model lab that is watching your customers start adopting Chinese open-source models? Well, you try to stop the exodus. One path is to out compete these open-source models, but you have already been working on that with your internal technology teams. The other path is to look for regulatory protection that stops or slows the opposition.
Bill Gurley points out that Anthropic appears to have engaged Option #2 over the last few weeks. He posted the following in a series of tweets:
“These overly aggressive grabs at regulatory capture come at the exact time as price rationalization & optimization are pushing partners and customers towards other solutions (as the example shows). Hope the government knows they are being manipulated…This is what’s causing Anthropic to aggressively beg for government protection (Rohan’s tweet above). Customers are finding cheaper alternatives. Keeping employees requires continuing ultra-rich secondaries ($$$) that are dependent on revenue growth. When you can’t win on the field go to DC…Anthropic could have sued in court (as others have). But they want something far more valuable than simple restitution. They want the US government’s “protection against competition” for years and years. A court can’t provide that.”
These are strong words coming from Gurley. There are always two sides to a story though. The counter-argument comes from Brad Gerstner when he wrote:
“Fable is currently export controlled & rumors are that 5.6 will also be subject to an approval framework. Whatever jiu jitsu the Chinese are using to get us slow down our own frontier models while letting their models run free appears to be working. Who is capturing who?”
As I said, all hell is about to break loose inside these large language models. They have essentially agreed to the US government demand to allow the latest models to get government approval. That is de-facto national control even if the large AI labs don’t realize it yet.
So the question becomes what are the ramifications of this development?
The most thorough analysis I have heard comes from Box CEO Aaron Levie. He writes:
“We now have de facto AI regulation. It’s not obvious why from here on out models that have certain levels of capability or are trained on certain compute sizes won’t have to be reviewed by the government before release.
Realistically, as AI models became more and more powerful this was going to be inevitable (I think it’s too early, but here we are). So now it’s mostly just interesting to think about the implications and scenarios from here. A few would be:
* America gets to control who gets access to frontier intelligence and when. This generally works as long as we remain at the frontier at all times and don’t have a risk of being surpassed. At the moment we have a clear lead in frontier intelligence so this is a good bet, but lots of motivated parties would love to change that.
* This likely creates backlog of AI releases which means that we will see less rapid fire back and forth jumps in model progress. Bull/fine case is that we just get bigger step functions per release at a slower rate and we end up at the same point we would have. Bear case is those incremental smaller jumps were necessary for the continued flywheel of innovation.
* Other countries likely have even more incentive to at least hedge their bets with sovereign AI strategies so aren’t dependent on access to US AI all times. Previously this was relatively moot because the alternative wasn’t good enough, but that could change out of necessity and what we’re seeing in China.
* Open weights obviously a big winner here as it becomes what likely sovereign AI gets built out on, and what (for now) can still be released to the market without the same controls. One interesting question would be how regulation eventually extends to open models, which would have its own set of long term consequences.
Anyway some big updates to everyone’s mental models of AI regulation as a result of the capabilities we’re now seeing in AI. Wild times.”
Wild times indeed. The AI industry is only going to grow in national importance, which means politicians and regulators are going to have a field day fighting for more control over time. That changes the playing field significantly and it gives the open-source models a big boost in their fight for adoption.
People and businesses want cheaper access to superhuman intelligence. The US government wants more control over the technology. And investors are looking for higher and higher rates of growth.
You simply can’t get all three of those at the same time, so at least one group is going to be disappointed. I will let you decide for yourself who will be the winners and losers.
Hope everyone has a great end to their week. I will talk to you on Monday.
- Anthony J. Pompliano
Founder & CEO, ProCap Financial (Nasdaq: BRR)
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2026-06-24 22:33:57
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To investors,
Inflation has been the big boogeyman for investors over the last two years. The doomsday predictors promised that tariffs would lead to high inflation, but those higher prices never materialized. Jerome Powell and the Fed eventually admitted they had misread the inflation impact and that tariffs did not have the negative impact they anticipated.
Once the tariff-related inflation concerns subsided, we ended 2025 with a central bankers dream of a low-inflation, high-growth economy.
This attractive environment didn’t last long though. President Trump and his administration ordered the bombing of Iran in late February, which led to the closing of the Strait of Hormuz and significantly higher energy prices globally. These higher energy prices created a spike in US inflation and the market commentators have been having a field day since with new promises of sky-high inflation that is right around the corner.
The New York Times published an article last month titled “Prices in the U.S. Are Rising at the Fastest Pace in Years.” ABC News wrote last week “Fed holds interest rates steady as inflation hits 3-year high.” And Bloomberg wrote yesterday “Fed’s Goolsbee Says Too-High Inflation Is ‘Going the Wrong Way.’”
Even Torsten Slok from Apollo seems to have a weird take on inflation. He wrote this morning:
The narrative in markets is changing from “lower oil prices mean lower inflation” to “lower oil prices mean more demand in an already overheating economy, which means higher inflation.”
This breakdown in the correlation between rates and oil prices can be seen in the chart below.
Driven by the strong April CPI, hot May non-farm payrolls and a hawkish Fed, the market narrative now suggests that the reopening of the Strait of Hormuz will further overheat the economy, forcing the Fed to raise interest rates soon.
This mainstream coverage is unfortunately looking in the rearview mirror. Inflation expectations have cratered over the last few weeks, which signals a newfound level of confidence that the previously rising inflation will likely be temporary.
James Thorne writes “doomers were wrong about inflation. Inflation expectations now lower than the beginning of the year.” That is a narrative violation if I have ever seen one.
Azoria Capital shows inflation expectations have been falling across the entire US Breakeven curve (2 year, 5 year, 10 year, and 30 year).
Somehow the major banks are confused by the latest developments. Bank of America is predicting three interest rate hikes before year end and Morgan Stanley is predicting zero. How the views of these organizations can be so widely different is always perplexing to me, but it highlights the complexity of the existing environment.
Oil is down nearly 40% since the March high. Inflation expectations have fallen from the sky. The odds of a recession in the US has plummeted to one of the lowest levels in years. And my guess is that headline inflation numbers are going to start their descent in the third quarter. If all this remains true, not only will the Fed refrain from raising interest rates, but there is a good chance we will get at least one interest rate cut before the end of the year.
Lower rates would bring higher asset prices. Be careful of the doomsday predictors. They are using the recent market weakness to claim victory, but it is more likely we are living through the seasonal “June Swoon.”
July will come, assets will recover, and everyone will realize the bull market is just getting warmed up.
Hope you have a great day. I will talk to everyone next time.
- Anthony J. Pompliano
Founder & CEO, ProCap Financial (Nasdaq: BRR)
Earlier this year, ProCap Financial launched ProCap Insights, the first agentic research offering in finance.
Leveraging the latest AI, ProCap Insights offers institutional-grade research to help independent investors make more informed investment decisions. Reports cover single-name stocks, thematic trends, and macro analysis across sectors and asset classes.
I sat down with my brother John, cover the Mag 7 selloff, AI CapEx fears, and why inflation is more under control than the headlines suggest.
We also break down Anthony's current portfolio, what Kevin Warsh is really doing at the Fed, and why bitcoin's volatility is a feature heading into its next decade.
Spotify | Apple Podcast | YouTube | Rumble
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You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.
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2026-06-22 22:08:19
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To investors,
The Magnificent 7 stocks have been a large driver of investment returns for millions of Americans over the last few years. But the darlings of the stock market have now fallen from grace.
Carson Group’s Ryan Detrick writes “the Mag 7 down year-to-date and the 493 [other stocks] up more than 13% year-to-date is one of the most incredible stories from an incredible year so far. It wasn’t that long ago that most client meetings were all about why don’t we only invest in these 7 stocks?”
Thankfully, indexes are a team sport and the other 493 stocks have helped the S&P 500 stay positive to the tune of 9% since the start of 2026. It is uncommon to have the entire market driving investor profits though.
Lance Roberts points out that “research spanning 1926–2025 finds that just 41% of US stocks outperformed Treasury bills over their lifetimes, with only 46 companies generating half of the market’s $91 trillion in cumulative wealth creation.”
This is a good historical fact to understand, but it doesn’t excuse the poor performance from the Mag 7.
In hindsight, the sell-off and lack of performance shouldn’t be surprising. These seven stocks became more than 30% of the S&P index at one point, which highlights just how dominant the businesses were compared to peers. Some will argue the relative weakness over the last six months is a cooling off period. While there may be some truth to that theory, I don’t think you can exclusively rely on it as the driver for the most popular stocks suddenly losing steam.
It is more likely these stocks are suffering from higher inflationary pressures from the Iran war (reminder: growth stocks are long duration assets that are very sensitive to these issues) and big questions around the expected ROI from the insane CAPEX spending from the hyperscalers.
I can’t have a conversation with a public market investor without them asking my opinion on whether AI adoption is going to slow down. So many of these investors are scared of their own shadow and genuinely believe there could be some sort of boogeyman where the world suddenly doesn’t find this new technology valuable.
I obviously disagree with their concerns and believe AI adoption is going to accelerate from here. But my opinion won’t prop up the Mag 7, nor will it prevent investors from rotating their capital into smaller stocks they deem cheaper from a valuation standpoint.
Another thing to keep in mind is that the Mag 7’s breathtaking performance in the last few years occurred against a backdrop of insane fiscal and monetary policy. These bad decisions drove all asset prices, including these seven companies, higher at a rate that outpaced even the most bullish investors. Trillions of dollars printed and rates at zero. That is a bull market cocktail if I have ever seen one.
Thankfully, investors in the Mag 7 shouldn’t go cry in the corner for long. We are starting to return to the ridiculous bad policies. Charlie Bilello writes “the debt ceiling was raised by $5 trillion less than a year ago. And US national debt has already increased by over $3 trillion. At this pace, we’ll be back debating another “ceiling” in 2027.”
The US government can’t help themselves. They only know how to spend more and more money. It doesn’t matter how much funding they receive from taxes. If that can’t fund their dreams, they just print the balance. I doubt anyone with half a brain thinks it is sustainable to increase the national debt by $3 trillion per year, but here we are pretending like everything is fine while the house goes up in flames.
So the money printer is going to work hard to make sure investor portfolios keep growing to the sky. Don’t believe me? Just look at the S&P 500 over the Fed’s balance sheet. Not exactly what you want to see if you believed you were a stock market genius who didn’t rely on the Fed to create paper gains for your portfolio.
However, the more important question in my mind is whether there are data points from the companies themselves that give me confidence that brighter days could be ahead?
Absolutely.
Barry Schwartz writes the “S&P 500 profit margins [are] up 58% since 2011. Historical P/E multiples have zero relevance.” I tend to agree with Barry. It is hard to point to stock valuations before the iPhone was invented when you have trillion dollar companies growing revenue at 50% year-over-year.
This type of growth, at this scale, was previously unfathomable. But this is the result of a digital economy that benefits from capital and information moving at the speed of light. Everything happens faster, including companies making more money and valuations surging higher.
This acceleration creates outsized returns for investors. Bilello highlights “the S&P 500 is up 15.6% per year since the start of 2020, on pace for its strongest decade since the 1990s.”
It is hard for investors to complain about the destruction of the US dollar or the rise of the K-shaped economy when the root cause is also enriching them. Add in the fact that stocks, particularly the Mag 7, will continue to benefit from the US economy being artificially propped up by stimulus and you can quickly see why there is not much panic in the market.
Investors have been conditioned to believe the Fed and US government will essentially guarantee financial returns. You just have to be disciplined and courageous enough to risk your capital and then hold on for the ride.
Hope everyone has a great start to their week. I will talk to you next time.
- Anthony J. Pompliano
Founder & CEO, ProCap Financial (Nasdaq: BRR)
Jordi Visser is a veteran macro investor with 30+ years of experience and the author of the VisserLabs Substack.
In this conversation, we discuss the AI pivot happening with hyperscalers, the rise of open source models, what the Mythos/Fable 5 situation means for governments and investors, Kevin Warsh's first Fed press conference, where inflation is actually headed, and why bitcoin is still in a bear market and what needs to change.
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Uphold - Uphold is the all-in-one platform to trade, earn, stake, and swap across 300+ assets with real-time proof-of-reserves and any-to-any conversions. Manage your entire crypto portfolio in one place at www.uphold.com
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BloFin - BloFin is a fast-growing cryptocurrency exchange focused on providing professional-grade trading tools, deep liquidity, and a secure trading environment for crypto traders worldwide.
You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.
2026-06-17 22:51:29
To investors,
The finance industry historically separated investors into two buckets: institutional investors and retail investors. Institutions had a fiduciary duty to their capital providers and these organizations were largely thought of as “smart money.” Retail only had a duty to themselves and Wall Street largely thought of them as the suckers at the table.
I believe there is a third group of investors who are quickly taking markets by storm. I call them “Independent Investors.”
You can think of this group as the upper middle class of finance. They don’t have enough capital to qualify as an institution, nor do they have large teams of people working for them, but they are far wealthier and more sophisticated than the the traditional retail investor.
There are three aspects that qualify someone as an independent investor:
Think independently — these individuals don’t trust the mainstream media and largely get their information from X, YouTube, podcasts, newsletters and social media.
Act independently — these individuals don’t rely on financial advisors, RIAs, or wire houses. They want to control 100% of their money and win/lose based on their own decisions.
Chase independence — these individuals have convinced themselves they will not achieve their financial goals exclusively from their W2, so they view their investment portfolio as the path to financial security and independence.
These independent investors tend to be digital-natives with high income and 7 or 8-figure net worths. For example, we built Silvia to help independent investors use the latest AI technology to better manage their assets and portfolio. The average user connects more than $2.5 million in assets.
Regardless of the fact that independent investors are wealthy, sophisticated, and responsible for a growing percentage of all stock market trading volume, these individuals are still treated like second class citizens from the traditional finance players.
I want to change that. I personally believe the independent investor is going to rapidly impact financial markets, various assets, and public companies.
Because of that, I announced this morning that we are holding a conference in New York City on October 7th and 8th to bring independent investors together with public market CEOs and top macro investors.
Current speakers include:
GameStop CEO Ryan Cohen
Opendoor CEO Kaz Nejatian
22V Research’s Jordi Visser
Ondas CEO Eric Brock
EMJ Capital’s Eric Jackson
RoboStrategy CEO Andrew Kang
and many, many others...
The goal with this conference is for you to hear directly from the leaders of these companies or investment firms. Meet them in-person. Ask them questions. Build a relationship. Learn from them and learn from each other.
Investing is a team sport where relationships, knowledge, and experience compounds over time. That is exactly what this conference (From The Desk Summit) is built to do.
For being loyal Pomp Letter readers, I come bearing two gifts for you:
You can use code “POMPLETTER” to get 50% off GA tickets to conference here
I am giving away 25 tickets for free to Pomp Letter readers. You can apply here to be one of the 25 winners.
So get your GA tickets 50% off or apply to get one of the 25 free tickets. I am looking forward to seeing everyone in October.
Have a great day. I will talk to you next time.
- Anthony J. Pompliano
Founder & CEO, ProCap Financial (Nasdaq: BRR)
2026-06-16 23:34:16
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To investors,
Elon Musk took SpaceX public last week. The stock has appreciated nearly 60% since the IPO, which helped the company cross the $3 trillion market cap milestone. Given this price appreciation, Elon made more money on paper yesterday than Warren Buffett has in his entire lifetime.
Yes, you read that right. Elon’s net worth increased by more than “a Warren Buffett” in the last 24 hours. Just insane. But Elon’s wealth is the least interesting story in my opinion.
The more important thing is that SpaceX just became the world’s first Mega Meme Stock.
First, to understand what is happening with SpaceX, you have to understand how the long-tail crypto market has worked for years. People would launch new coins, they would create a very low tradable float, and then they would solicit investor interest on social media. As those new investors fought over the scarce number of coins available in the market, the fully diluted value (FDV) of all coins went up substantially.
Once the price per coin reached a ludicrous level, the creator of the coin would start selling some of the previously illiquid coins they were holding. This allowed the creator to monetize the hype and momentum at valuation levels detached from reality, which would then lead to a significant drop in price for the coin. This digital game of hot potato rewarded the creator of the coin or the people who were able to time the market correctly, but it hurt the retail investors who were late to buying and slow to selling.
The reason you have to understand this situation is that SpaceX stock is benefitting from a very similar low float, high FDV scenario. In fact, experienced crypto investors identified this potential situation almost immediately and have been aggressively investing in SpaceX stock over the last few days.
X user Threadguy explains why he got interested in SpaceX stock:
“The reason that I got excited about SpaceX was, it’s the crypto strategy that we know all too well. It’s low float, high FDV on the greatest narrative of all time by the greatest bull poster of all time”
“If they launch this thing, fully diluted and everybody’s unlocked on day one, obviously you’re not touching it. But we watched in real time how Elon has structured it to push float super low at the beginning and lockups down the line.”
The Elon critics will claim this low float situation is merely another tactic from the world’s greatest entrepreneur to extract value from unsuspecting retail investors. They will screech that Elon has too much money and the stock liquidity structure should be investigated immediately by unknown organizations for unknown reasons.
But I have a different view of the situation.
SpaceX announced this morning they are acquiring Anysphere, the maker of Cursor, for approximately $60 billion in stock. This means SpaceX is buying one of the fastest growing AI companies, in one of the most important verticals (coding), for only ~ 2.5% dilution. That is a very savvy capital markets and corporate finance decision.
In addition to the Cursor acquisition, SpaceX is rumored to be considering a merger with Tesla as well. Elon recently said he thinks SpaceX would be doing more than $1 trillion in revenue by the end of the year. The only way he could get there given the current facts would be a merger with Tesla.
By having a high valuation, SpaceX reduces the dilution it would otherwise experience through a large merger with Tesla.
This brings me back to the world’s first Mega Meme Stock.
SpaceX is surging double-digit percentages every day as institutional investors, retail investors, and the media can’t look away. People would rather feel stupid for buying something that may be overvalued later, then feeling stupid for missing out. Human nature is undefeated.
The insatiable investor demand will not go to waste. Thankfully, Elon is going to use the IPO proceeds and high valuation to democratize intelligence, beam the internet down from space, colonize Mars, and invent the orbital data center industry.
The hype will be used to help humanity. He is going to turn attention and momentum into material solutions for some of the hardest problems we face. This is no different than a bubble needed to fund new industries, whether that was the Dot Com bubble, the cable bubble, the COVID bubble, the crypto bubble, or the housing bubble.
People get excited about the future and they invest their capital to help fund it being built. So SpaceX’s spectacular rise is actually a sign that Elon’s vision is more likely to occur than people originally gave him credit for.
Could SpaceX’s stock fall when insiders get their stock and are unlocked later this year? Sure, maybe. Many of those investors are long-term believers though so we may not see as much sell pressure as people think. Additionally, there is so much demand that the sell pressure will likely be eaten up quickly as investors trained to “buy the dip” do exactly that.
Lastly, I would expect Elon and SpaceX to use the increasing stock price to go on an acquisition spree. Cursor is the first one. Tesla is likely on the roadmap. But I wouldn’t be surprised if they start buying up companies or technologies related to AI, data centers, power generation, physical AI, and robotics.
Elon Musk has been clear about the future world he believes is inevitable. He has been diligently working to make it a reality for nearly 30 years. If he has the chance to consolidate resources and accelerate his timeline to achieving success, we have learned to never, ever bet against him.
I hope you all have a great day. I will talk to you next time.
- Anthony J. Pompliano
Founder & CEO, ProCap Financial (Nasdaq: BRR)
Jordi Visser is a veteran macro investor with 30+ years of experience and the author of the VisserLabs Substack.
In this conversation, we break down the SpaceX IPO, orbital data centers, and the critical minerals powering the AI buildout. We also discuss the AI model wars, why Jordi thinks Sam Altman won’t be running OpenAI within a year, and how the New York Knicks playoff run connects to the future of crypto and blockchain in a world of AI and deep fakes.
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