00:02 Josh Lipton
It’s time to cover some of today’s trending tickers brought to you by CBO. We’re watching transport stocks, Super Microcomputer, and Draft Kings.
00:10 Josh Lipton
Joining me now got Yahoo Finance’s Pras Suma. All right,
00:13 Josh Lipton
topic one, Pras. Amazon keeps moving deeper into logistics. expanding its less than truckload offering. Trucking companies sinking in today’s trade. Now, Bloomberg did note, listen, these stocks they’d rallied hard, valuations were stretched.
00:30 Josh Lipton
So there were some other variables here we have to consider, but they did site Morgan Stanley as saying, you know what? Amazon, Morgan Stanley saying, could grab share even without best-in service initially. What do you make of it?
00:41 Pras Submaranian
So I I think that first part of your analysis is correct, right? I think it’s really about the Dow Jones Transport were surging, right? up five days in a row, right? Uh up a lot. So you have these people, these companies that people were owning shares in these trucking companies like Old Dominion, FedEx Freight, etc.
00:52 Pras Submaranian
They’re taking some gains here, right? And it helps that Amazon is doing this move, right?
00:56 Pras Submaranian
So it’s a it’s a subset of the trucking business that some of these uh companies operate in. Um the reason why this analyst talks about how it’s it could actually have a sub standard service and still take some share. and they’re going to cut on price. But I think the analysis is that people who use these specialized shippers will continue to do so and maybe they might try Amazon, but for the most part, you know, they’re going to stick with their shippers they normally use. But but hey, Amazon’s Amazon. like they they disrupt everything they get into. So you can’t necessarily count them out there. So I think that maybe there is some some some reason for some selling in this in this space.
1:19 Josh Lipton
Yeah. If Amazon succeeds, does it mean cheaper shipping and faster delivery for Josh Lipton. That’s that’s the main question, Chris. That’s what we’re asking.
1:28 Josh Lipton
All right, super microcomputer under pressure. That’s after announcing plans to raise about $7 billion. This one’s interesting. So here’s here’s what happens. They announced a $7 billion equity raise uh to fund $39 billion of AI server orders.
1:41 Josh Lipton
Now, some might say, they look at that and say, hey, that that reinforces the bull case for this mega AI infrastructure build out. that sounds good like good news. Team at Bernstein, I I thought this was an interesting note. They throw a yellow flag here.
1:55 Josh Lipton
They do a little digging, right? They tell their clients this. They say, these orders are not firm commitments and are all subject to cancellation. They they say they caught the the company saying that in the filing. So Bernstein’s analysis to their clients was, hold on.
2:08 Josh Lipton
While 39 billion in AI server orders sounds massive, they say we struggle to understand how real those orders really are.
2:16 Josh Lipton
They rate super micro market perform. So they’re on the sidelines for a while.
2:20 Pras Submaranian
So you said you said yellow flag. I think you want to say yellow card and a red card here with World Cup coming up tomorrow, right? But hey,
2:26 Pras Submaranian
when Google sells, sells Google sells stock, investors say, Daddy likes, right? They want more.
2:33 Pras Submaranian
when Super Micro does, they say, no thanks. No. Daddy no likey. Massive delusion. Not likey, right? So Super Micro shares up 40%, right?
2:41 Josh Lipton
before today’s move. Come on.
2:43 Pras Submaranian
you see what’s going on here, right? People want to lock in some gains.
2:47 Josh Lipton
again, like the truckers
2:48 Pras Submaranian
argument we’re saying here. But in this case, how is super micro any different than like let’s say Dell that’s had a monster runup.
2:54 Josh Lipton
Well, this is what Bernstein is getting at is how really orders are. That was their point.
2:58 Pras Submaranian
Maybe that’s about maybe that’s a little bit what you saw today.
3:00 Josh Lipton
Well, how the orders are sort of hey, uh
3:02 Pras Submaranian
well, let’s say we’re
3:03 Josh Lipton
that they’re not firm commitments. That was Bernstein’s point. That’s the differentiation.
3:07 Josh Lipton
maybe look at that chart. Uh that could be what you’re saying.
3:10 Pras Submaranian
I mean you can say that about a lot of these.
3:11 Josh Lipton
and and the dilution.
3:13 Pras Submaranian
I mean that’s what spooks folks.
3:15 Pras Submaranian
Uh you know, I I I I think Super Micro not a name like Dell obviously, but operating in the same space here. It’s only the server stuff. So yeah, I I I I get it. I get it. We’re both revenue jumped over 100% last quarter. I get it. It’s time to take some money off the table. Um but yeah, it’s for stuff. You can apply that across the board in the space, right? So
3:30 Josh Lipton
Last one. DraftKings. Now this was interesting. Making news reports that annualized consumer trading volume on DraftKings predictions, that rose 24% month over month to 1.3 billion.
3:42 Josh Lipton
Total volume increases 34% to 3.1 billion. I have had analysts on the show who cover this space price and they say, you know what, in the prediction markets, it’s the sports books that are going to win. It’s DraftKings, it’s Flutter, FanDuel. They got the experience, they got the balance sheet. They know their customers, they know Proce Moranian. They’re going to be winners here.
3:58 Pras Submaranian
Yeah, I mean it’s just they know how to navigate the the space with, you know, right, there’s federal laws right now that that that allow prediction markets uh that, you know, sort of supersede stuff like state gambling laws, right? So the state state by state can can can can ban or approve sports gambling, but they can’t really effectively affect or change prediction markets, right?
4:18 Pras Submaranian
Now, what happens if that change is a new administration? Well, guess who’s knows how to deal how to deal with that. It’s the DraftKings, the flutter of the world. This is their space. This is a nobrainer for them to get into prediction markets, right? Makes total sense to me. Um yeah, like I said, they they can navigate it like better than anybody. And and the concern was that they were going to lose market because the prediction markets would take over sports. Now they’re in it too.
4:42 Josh Lipton
So it’s all kind of level playing field. Both say they have plenty of advantages of their own. We’ll find out. Pros, thank you, buddy.
