On Thursday the Financial Times reported that OpenAI's annualised revenue was approaching $50 billion, not the $70 billion that had been circulating for a fortnight. The semiconductor complex broke. The SOX fell as much as 4%, Arm, Intel and Marvell each dropped more than 6%, Micron more than 5%, and the Nasdaq closed down 1.3%. Then the explanation arrived. The $70 billion was a gross figure, counting money that passes straight through to cloud partners. The $50 billion is net. No customer left. Enterprise revenue grew 107% in the quarter. What moved was which line of a spreadsheet someone was reading. On that same Thursday, TSMC reported record quarterly revenue of NT$1.49 trillion, up 50.9%. Audited figures, from a listed company. The market sold the audited one because of a rumour about the unaudited one. That is the structural problem with a trade now financed by roughly $125 billion of debt raised against two borrowers who publish no accounts. By Friday it had all come back. The Dow rose 423 points and the week finished up 1.2% on the S&P. Also inside: the thirty-year auction answer and why it differed from the ten-year; Trump going to Moscow for diesel in a reversal of US policy; Delta's fuel bill up 62%; Michigan sentiment at 46.3 with five-year inflation expectations at 3.5%; and why Wednesday's CPI is the only thing that matters this week. Full piece below. Not financial advice. https://cycledesk.substack.com/p/twenty-billion-dollars-went-missing?r=7unzzg&utm_medium=ios
876 views
0 Comments
No comments available.
Join the conversation with 500,000+ other investors 💸
Create an account to get access to everything Blossom has to offer!
📊 Personalized algorithm based on your investing style, experience level and interests
📈 Powerful portfolio and dividend tracking tools
👀 See what top creators and others in the community are investing in
