Meta's Muse hit No. 1 on the US App Store ten days after launch, cybersecurity had its best week of the year on AI fear, and the Fed hiked for the first time since 2023 with both hosts on record for no hike. Daniel Newman and Shay Boloor open episode 57 a week after the pace the frontier call and grade what it changed.
Daniel brings ETR survey data from about 50 enterprise CIOs: the buyers of AI are fine with a slowdown, want third-party evaluation, and will pay a premium for the testing. They cannot keep up with the releases, he says, and both hosts call the labs' slowdown push regulatory capture ahead of the OpenAI and Anthropic IPOs, which Shay has zero plans to buy. Nebius raised prices about 20%, Anthropic wants 5 gigawatts by year end, and Daniel repeats that the compute is the moat. Daniel calls the hike bullish for cash holders and a problem for anyone on a credit card or a 7.5% mortgage. Shay's rule is to separate demand from financing: the buildout does not slow, the neo clouds that borrow to build get replaced by Microsoft and Meta funding from cash flow.
Meta is Shay's case of monetizing intelligence a company already owns. Muse turns a hotel ad into a booked reservation, which moves Meta from creating demand to participating in the transaction. Daniel calls it the Apple move Apple never made. Cybersecurity, the show's application winner call since the SaaSpocalypse, is now fully priced by both hosts' account. Daniel says the opportunity was the Mythos selloff. Shay holds CrowdStrike and Cloudflare at about 8% of his portfolio, counts them at 100x free cash flow, and would not be surprised if they go nowhere for two years. His replacement trade is memory and power: Micron, Vertiv, onsemi and Nebius, with SiTime, Aehr Test Systems and Credo as the less obvious bottlenecks for 2027. Daniel backs memory, calls Nvidia undervalued for the systems it builds, and puts Meta and Google back on his list as stack owners.
The Q&A covers whether the hike changes either host's buying, the 2027 themes, Daniel's long healthcare in Oscar and Hims, Oracle as a 2028 story and a 0.3% trade, Dell at 21x against Micron at 6x, and the first lightning round: short Dell and Intel, long Micron and Nvidia.
Watch the full episode with chapters on YouTube: https://youtube.com/live/w8bfh5NXhGs?feature=share
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