ASML Stock Plunges -10% After Giving This Warning

00:29:56
https://www.youtube.com/watch?v=P15oUHyGDkk

Sintesi

TLDRASML's stock fell 10% following a strong earnings report due to a warning from the CEO about uncertainties for 2026, primarily related to geopolitical factors and tariffs. Despite strong fundamentals, including a revenue of $7.7 billion and significant growth in various segments, investor sentiment turned negative. Other news includes strong earnings from major banks and discussions about the potential firing of Fed chair Jerome Powell by President Trump, which is legally complicated. Additionally, Amazon's Project Kyper aims to provide satellite internet services, potentially enhancing their logistics and AWS offerings.

Punti di forza

  • 📉 ASML's stock dropped 10% after earnings report.
  • 💰 Strong earnings with $7.7 billion in sales.
  • ⚠️ CEO warned about uncertainties for 2026.
  • 🌍 Geopolitical factors and tariffs are concerns.
  • 🏦 Major banks reported strong earnings this week.
  • 🚀 Amazon's Project Kyper aims for satellite internet.
  • 📈 ASML expects 15% revenue growth in 2025.
  • 🔄 ASML is actively buying back shares.
  • ❌ Trump cannot legally fire Jerome Powell.
  • 📊 Investor sentiment can shift despite strong fundamentals.

Linea temporale

  • 00:00:00 - 00:05:00

    ASML's stock dropped 10% after a disappointing earnings report, with critical warnings about future growth in 2026. The company faced challenges from tariffs and geopolitical uncertainties, leading to investor concerns despite strong current financial performance.

  • 00:05:00 - 00:10:00

    Despite the stock drop, ASML's Q2 earnings report showed strong revenue growth, beating expectations with total net sales of $7.7 billion. The company reported high gross margins and strong performance across its revenue segments, indicating solid fundamentals.

  • 00:10:00 - 00:15:00

    The CEO's cautious outlook for 2026, citing macroeconomic uncertainties and geopolitical risks, contributed to the stock's decline. Investors reacted negatively to the lack of confirmed growth, despite the company's strong current performance and revenue guidance for 2025.

  • 00:15:00 - 00:20:00

    The narrative surrounding ASML's stock is influenced by external factors, including potential tariffs and trade disputes, which could impact future demand. The CEO's comments highlighted the unpredictability of the market, leading to investor skepticism despite strong fundamentals.

  • 00:20:00 - 00:29:56

    In addition to ASML's situation, the video discusses earnings reports from major banks, President Trump's potential actions regarding the Fed chair, and Amazon's Project Kyper, which aims to provide satellite internet services, showcasing the diverse landscape of current market news.

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Video Domande e Risposte

  • Why did ASML's stock drop?

    ASML's stock dropped 10% due to a warning from the CEO about uncertainties for 2026, particularly related to geopolitical factors and tariffs.

  • What were ASML's earnings results?

    ASML reported strong earnings with total net sales of $7.7 billion, beating revenue expectations.

  • What is Project Kyper?

    Project Kyper is Amazon's satellite internet service, similar to Starlink, expected to launch by the end of this year.

  • What did the CEO of ASML say about future growth?

    The CEO mentioned that while they are preparing for growth in 2026, they cannot confirm it due to increasing macroeconomic uncertainties.

  • How did the banks perform in their earnings reports?

    Major banks like JP Morgan Chase and Goldman Sachs reported strong earnings, with significant revenue growth across various segments.

  • Can President Trump fire Jerome Powell?

    No, President Trump cannot legally fire Jerome Powell, the Fed chair, as they are separate entities.

  • What are the implications of tariffs on ASML?

    Tariffs create direct and indirect risks affecting ASML's cost basis and market demand.

  • What is the significance of ASML's buybacks?

    ASML is actively buying back shares, which indicates confidence in their financial health and aims to return capital to shareholders.

  • What is the expected revenue growth for ASML in 2025?

    ASML expects revenue to grow by 15% in 2025 compared to 2024.

  • What are the potential benefits of Project Kyper for Amazon?

    Project Kyper could enhance Amazon's logistics and provide private connectivity for AWS clients.

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Scorrimento automatico:
  • 00:00:00
    ASML just reported earnings and the
  • 00:00:02
    stock is down 10% on the day. It went
  • 00:00:05
    from $800 to 743.
  • 00:00:08
    And we have some of the early news
  • 00:00:09
    reports reading into this earnings
  • 00:00:11
    report. One of them from Fast Company
  • 00:00:13
    saying that ASML stock price is dropping
  • 00:00:16
    today after the semiconductor giant
  • 00:00:18
    issued a critical warning about 2026. A
  • 00:00:21
    critical warning. That sounds really
  • 00:00:24
    bad. What critical warning did they
  • 00:00:25
    issue? We have Baron saying that ASML
  • 00:00:27
    stock tumbles after growth warnings and
  • 00:00:29
    earnings report. Tariffs are biting.
  • 00:00:32
    That's right. According to Barren, the
  • 00:00:34
    tariffs are taking a bite out of ASML.
  • 00:00:37
    Then we have Bloomberg saying that ASML
  • 00:00:39
    falls most since April after CO walks
  • 00:00:42
    back growth forecast. These articles
  • 00:00:44
    don't paint a pretty picture about what
  • 00:00:46
    just happened to ASML. With the stock
  • 00:00:48
    being down 10%, it's reasonable to ask
  • 00:00:50
    what happened. What were these critical
  • 00:00:52
    warnings? What was so bad in this report
  • 00:00:54
    deserving of it to drop this much? We're
  • 00:00:56
    going to be going over it in this
  • 00:00:58
    episode. Now, of course, we have other
  • 00:00:59
    news. The banks reported earnings like
  • 00:01:01
    JP Morgan Chase and Goldman Sachs.
  • 00:01:03
    President Trump is looking to maybe fire
  • 00:01:05
    Jerome Pal, the Fed chair. Can he even
  • 00:01:08
    do that? Is he capable of doing that?
  • 00:01:10
    And how would the market react? And we
  • 00:01:12
    have more news on Amazon's project
  • 00:01:14
    Kyper, their internet satellite. They
  • 00:01:16
    have plans to launch this by the end of
  • 00:01:18
    this year. We'll be looking at the
  • 00:01:20
    details as well. Now, we start things
  • 00:01:21
    off by talking about this huge drop in
  • 00:01:23
    ASML. The stock is currently down 10%
  • 00:01:26
    from where it was just yesterday. And
  • 00:01:28
    that is a notable drop for a stock that
  • 00:01:30
    already seems like it's at a decent
  • 00:01:31
    valuation. It's also a very high quality
  • 00:01:33
    company. This isn't some memecoin. ASML
  • 00:01:37
    is not some small cap highly speculative
  • 00:01:39
    company. This is after all one of the
  • 00:01:41
    companies creating the backbone of
  • 00:01:43
    innovation on the front of creating AI
  • 00:01:46
    chips. So ASML is a highly profitable
  • 00:01:49
    dominant company with a very wide moat.
  • 00:01:52
    It has technological supremacy over its
  • 00:01:54
    peers and yet it's down 10% today and
  • 00:01:57
    these news headlines make it seem like
  • 00:01:59
    things aren't so good. Like we have
  • 00:02:00
    something to be concerned about here.
  • 00:02:02
    Now I must start off by saying even
  • 00:02:05
    before we go into some of the details
  • 00:02:07
    that I am a proud shareholder of ASML. I
  • 00:02:10
    really like the company. I like what
  • 00:02:11
    they're doing out there. The the science
  • 00:02:13
    behind this, the technology behind it is
  • 00:02:16
    incredible. ASML has created something
  • 00:02:18
    that's so incredibly difficult to
  • 00:02:21
    replicate that even huge nations funded
  • 00:02:24
    by their state can't figure it out.
  • 00:02:27
    Nations like China are lagging behind
  • 00:02:29
    ASML's technology. Now, right now, I do
  • 00:02:32
    have a position in ASML that's around
  • 00:02:34
    $49,700.
  • 00:02:37
    Currently, I'm in the green by a sliver
  • 00:02:39
    by only $2,000. So, we're barely in the
  • 00:02:42
    green on this one. If I look at the one
  • 00:02:44
    day just today, we're down $5,100.
  • 00:02:48
    So, a big red day on the day. And of
  • 00:02:50
    course, that's because of this drop due
  • 00:02:52
    to this earnings report. Now, as we look
  • 00:02:54
    at ASML,
  • 00:02:56
    when I look at a drop like this after
  • 00:02:58
    earnings, uh I've seen this so many
  • 00:03:00
    times through so many holdings that I've
  • 00:03:02
    held that it doesn't phase me quite as
  • 00:03:04
    much as as it used to. Uh, you know,
  • 00:03:07
    when you're first investing and you see
  • 00:03:08
    a 10% drop, you think it's a really big
  • 00:03:11
    deal, but once you've invested for five
  • 00:03:13
    or six years, you've followed companies
  • 00:03:15
    quarter after quarter, you realize that
  • 00:03:17
    this is not unusual. It's really not. If
  • 00:03:20
    you've been invested in Netflix for any
  • 00:03:22
    period of time, you're expecting the
  • 00:03:24
    stock to either go up 10% or down 10%.
  • 00:03:27
    It's going to be one of them, and it's
  • 00:03:28
    basically a coin flip. You can never
  • 00:03:30
    really guess what's going to happen. And
  • 00:03:32
    that's the reason why you're always told
  • 00:03:33
    to be a long-term investor, to not play
  • 00:03:35
    quarters, because investing quarterto
  • 00:03:38
    quarter is highly unpredictable and will
  • 00:03:40
    lead you to making bad bets and losing
  • 00:03:42
    money. Now, generally speaking, stocks
  • 00:03:44
    trade based off of two different things.
  • 00:03:46
    They trade off of the fundamentals. The
  • 00:03:48
    earnings report having the revenue, the
  • 00:03:50
    operating margins, the free cash flow,
  • 00:03:52
    the KPIs, the units sold, so on and so
  • 00:03:55
    forth. All the things you're seeing are
  • 00:03:57
    the fundamentals of the company. But
  • 00:03:59
    then beyond the fundamentals, you have
  • 00:04:01
    another important aspect of every stock,
  • 00:04:03
    which is the narrative. The narrative is
  • 00:04:05
    the prevailing sentiment on the stock.
  • 00:04:08
    Whether investors are very hyped about
  • 00:04:09
    it, they're excited about it. The future
  • 00:04:11
    is really bright, or whether they're
  • 00:04:13
    looking at it with a bit of concern, a
  • 00:04:15
    bit of skepticism, they don't quite
  • 00:04:17
    believe the bright future of the stock.
  • 00:04:19
    That is the narrative. And the
  • 00:04:21
    combination of those two things, the
  • 00:04:22
    marriage of those two things is the
  • 00:04:24
    overall story of a stock. A story is how
  • 00:04:26
    you believe the narrative and the
  • 00:04:28
    fundamentals will play out over long
  • 00:04:30
    periods of time. With a company like uh
  • 00:04:32
    Netflix or Amazon, I have a a good story
  • 00:04:35
    that I've created for these stocks over
  • 00:04:37
    a long time period. I think they'll be
  • 00:04:38
    very prosperous. I think they'll have
  • 00:04:40
    great fundamentals and there's a good
  • 00:04:42
    narrative behind the companies. So, with
  • 00:04:44
    ASML, there's two different things that
  • 00:04:46
    could have gone wrong with this earnings
  • 00:04:48
    report. Either the fundamentals were
  • 00:04:50
    disappointing and the stock did not
  • 00:04:52
    perform up to its expectations. It
  • 00:04:54
    didn't grow revenue fast enough. It
  • 00:04:56
    didn't grow operating margins high
  • 00:04:58
    enough. It didn't sell enough machines.
  • 00:05:00
    Either that went wrong or investors have
  • 00:05:03
    changed their narrative on the company.
  • 00:05:05
    And with this reaction, it's firmly a
  • 00:05:07
    narrative issue. If we look at the
  • 00:05:08
    financial results they just posted for
  • 00:05:10
    Q2 of this year, just the past 3 months,
  • 00:05:12
    and we check in on how this company's
  • 00:05:14
    actually doing, it's very strong. We can
  • 00:05:16
    look at it highlighted here by Qualram
  • 00:05:18
    summarizing the earnings report. Total
  • 00:05:21
    net sales was 7.7 billion. the upper end
  • 00:05:24
    of guidance. So they hit the high end of
  • 00:05:26
    their guidance and revenue. And by the
  • 00:05:27
    way, they beat their revenue
  • 00:05:28
    expectations boosted by high NA system
  • 00:05:31
    revenue and strong upgrades in business.
  • 00:05:34
    Net system sales were 5.6 billion driven
  • 00:05:37
    by 69% uh logic and 31% memory.
  • 00:05:41
    Install-based management sales exceeded
  • 00:05:43
    guidance 2.1 billion. So out of their
  • 00:05:46
    three revenue segments which if we look
  • 00:05:49
    at ASML here on Qualrum we have these
  • 00:05:50
    broken down into segments. They have
  • 00:05:53
    three major segments which is the
  • 00:05:54
    install base. This is like a
  • 00:05:56
    subscription type of revenue because
  • 00:05:57
    it's so reoccurring. We have logic and
  • 00:06:00
    we have memory. Out of these three two
  • 00:06:02
    of them were at the very high end of
  • 00:06:04
    their guidance and one of them was
  • 00:06:06
    within guidance. So overall they beat on
  • 00:06:08
    their revenue and two of the three are
  • 00:06:10
    doing incredibly well. This doesn't look
  • 00:06:13
    bad. There's nothing concerning about
  • 00:06:15
    the revenue growth of the company. And
  • 00:06:18
    by the way, the revenue growth of a
  • 00:06:19
    company is a really big deal. That's one
  • 00:06:21
    of the major things we're looking at is
  • 00:06:23
    how fast the company's growing top line.
  • 00:06:25
    And overall revenue growth is above 15%.
  • 00:06:28
    This company's growing quickly. And this
  • 00:06:30
    last report showed that. We look at some
  • 00:06:32
    of the other financial highlights. Gross
  • 00:06:34
    margins were 53.7%. Again, above
  • 00:06:36
    guidance. We're getting a lot of these
  • 00:06:38
    things that are at the top end of
  • 00:06:39
    guidance. Above guidance, operating
  • 00:06:41
    expenses, we're on track. R&D of 1.2
  • 00:06:44
    billion. You have SGNA at 299 million.
  • 00:06:47
    We have net income of 2.3 billion with
  • 00:06:49
    earnings per share of 5.9. They beat
  • 00:06:52
    their earnings per share estimates as
  • 00:06:53
    well. They ended the quarter with $7.2
  • 00:06:56
    billion in cash. Now, if we look at this
  • 00:06:58
    information in this recent report from
  • 00:07:00
    an ownership perspective, we look at it
  • 00:07:02
    as having a vested interest in this
  • 00:07:04
    business over a longer time period. That
  • 00:07:06
    doesn't look bad. In fact, I would say
  • 00:07:08
    quite objectively that looked really
  • 00:07:10
    good. The report across the board just
  • 00:07:12
    seems like business as usual. In fact,
  • 00:07:14
    business may be doing a little bit
  • 00:07:15
    better than usual. Then we look at their
  • 00:07:17
    capital return policy. This is the CFO
  • 00:07:20
    and the CEO making decisions on where to
  • 00:07:22
    invest, where to reinvest their capital,
  • 00:07:25
    and especially how to provide capital
  • 00:07:26
    back to the shareholder. We have
  • 00:07:28
    dividends and buybacks. They paid a
  • 00:07:30
    dividend of $1.84 per share in Q2. The
  • 00:07:33
    interim dividend in 2025 was $160.
  • 00:07:37
    And we have Q2 share buybacks that
  • 00:07:40
    totaled€1.4 billion euros. So we have
  • 00:07:43
    some numbers of the dividends and
  • 00:07:44
    buybacks they paid last quarter. And we
  • 00:07:46
    can put that in context with the return
  • 00:07:48
    of capital chart. Return of capital
  • 00:07:50
    means the amount of capital money that
  • 00:07:52
    they're returning back to you, the
  • 00:07:54
    shareholder. And we illustrate this
  • 00:07:55
    through dividends and buybacks. The
  • 00:07:57
    dividends are in purple. The buybacks
  • 00:07:59
    are in that nice tan color. Now if I
  • 00:08:01
    filter this by the past 5 years. Now, if
  • 00:08:03
    we look at just the buybacks and we want
  • 00:08:05
    to compare this compared to Q1 of 2025,
  • 00:08:08
    we have the buybacks here, which is
  • 00:08:09
    $3.01 billion in USD. If we look at this
  • 00:08:13
    just in the euro, it was 2.6 billion.
  • 00:08:16
    So, 2.6, they did 1.4 this quarter,
  • 00:08:19
    right around there. That's where the new
  • 00:08:20
    chart will show. So, they're still doing
  • 00:08:22
    buybacks aggressively, more than they
  • 00:08:24
    did basically all of 2023 and 2024. And
  • 00:08:27
    they're doing that because they have a
  • 00:08:28
    big cash balance. Now, if we bring up
  • 00:08:30
    their cash pile, they said that they
  • 00:08:32
    ended the quarter with €7.2 billion.
  • 00:08:36
    Now, we translate the zeros here. We
  • 00:08:38
    have 9.1 in Q1. So, 9.1 they will have
  • 00:08:42
    right about here in Q2. So, the cash
  • 00:08:46
    balance still went down a step, but it
  • 00:08:48
    has a lot further to go. They can do
  • 00:08:50
    another massive quarter of buybacks,
  • 00:08:52
    another 1 to2 billion of buying back
  • 00:08:54
    shares. That'll bring them back down to
  • 00:08:56
    around here. And that's assuming that
  • 00:08:58
    their cash balance doesn't increase
  • 00:08:59
    because of new inflows of money. So, as
  • 00:09:01
    they're chunking away at their balance
  • 00:09:03
    sheet, doing aggressive buybacks every
  • 00:09:05
    quarter, they're lowering their cash
  • 00:09:07
    balance, and they're intentionally doing
  • 00:09:08
    this over time. So, if the stock drops
  • 00:09:10
    at all, they can buy the dip like they
  • 00:09:12
    are right now. I'm sure that ASML is
  • 00:09:14
    doing aggressive buybacks today. Now,
  • 00:09:17
    they'll be able to do this again until
  • 00:09:19
    the end of the year, and eventually,
  • 00:09:20
    they'll have another big year of free
  • 00:09:22
    cash flow. When the free cash flow does
  • 00:09:24
    spike, like we've seen in recent
  • 00:09:26
    quarters, we saw in Q4 of 2024 that they
  • 00:09:28
    gained $10.2 billion in free cash flow,
  • 00:09:31
    when you have a big quarter like that,
  • 00:09:33
    your cash balance also spikes up. That's
  • 00:09:35
    why it went up so much in that same
  • 00:09:36
    quarter. So, as they use this giant
  • 00:09:39
    stockpile of cash to buy back shares,
  • 00:09:41
    the cash balance will continually go
  • 00:09:43
    down, then it will be restocked after
  • 00:09:45
    the new year, and then they'll be able
  • 00:09:46
    to do it all over again. Now, so far
  • 00:09:48
    when looking at these numbers, the
  • 00:09:49
    fundamentals of the company, looking at
  • 00:09:51
    the revenue growth, the operating
  • 00:09:52
    margins, the systems sold, the progress
  • 00:09:55
    they're making overall, and their
  • 00:09:56
    capital allocation, how they're buying
  • 00:09:58
    back shares, returning money to the
  • 00:10:00
    shareholder through both dividends and
  • 00:10:01
    share buybacks. I don't see anything
  • 00:10:03
    that's too concerning. Certainly nothing
  • 00:10:05
    that makes me want to run out and sell
  • 00:10:07
    the company. Nothing that I believe so
  • 00:10:09
    far warrants a 10% down day. But that's
  • 00:10:11
    because it's not in the fundamentals.
  • 00:10:13
    Remember this is a narrative issue where
  • 00:10:15
    we get to the problems that ASML ran
  • 00:10:17
    into. It was specifically from a
  • 00:10:19
    statement from the CEO. This was given
  • 00:10:22
    on the earnings call and I'll go through
  • 00:10:24
    and read his direct remarks. The CEO
  • 00:10:26
    mentions the topline growth, all the
  • 00:10:28
    revenue they're gaining, the gross
  • 00:10:29
    margins being above guidance. He also
  • 00:10:32
    mentions some of the advancements
  • 00:10:33
    they're making in the technology. But
  • 00:10:35
    then we get to the statements that are
  • 00:10:36
    future-looking. quote, "Looking at 2026,
  • 00:10:40
    we see that our AI customers
  • 00:10:41
    fundamentals remain strong. At the same
  • 00:10:44
    time, we continue to see increasing
  • 00:10:46
    uncertainty driven by macroeconomic and
  • 00:10:48
    geopolitical developments. Therefore,
  • 00:10:51
    while we still prepare for growth in
  • 00:10:52
    2026, we cannot confirm it at this
  • 00:10:56
    stage." That last sentence there,
  • 00:10:57
    especially that last part of the
  • 00:10:59
    sentence, is the reason the stock is
  • 00:11:00
    down 10% today. The CEO commented on
  • 00:11:04
    macro uncertainties, increasing
  • 00:11:06
    unpredictability in this market, saying
  • 00:11:09
    that even though they're preparing for
  • 00:11:10
    growth in 2026, they can't guarantee it.
  • 00:11:13
    They can't confirm it at this stage. The
  • 00:11:15
    CEO is basically hedging his bet. He's
  • 00:11:17
    giving a little bit more room, a little
  • 00:11:19
    bit of margin of error of downside
  • 00:11:20
    probabilities due to macro
  • 00:11:22
    uncertainties. Now, what macro
  • 00:11:24
    uncertainties exist? Well, just in the
  • 00:11:26
    past week, we've had Trump intensify the
  • 00:11:28
    trade war with threats of a 30% tariff
  • 00:11:31
    on the EU where ASML resides. Now, we
  • 00:11:34
    don't know how that will really affect
  • 00:11:36
    ASML, how long those tariffs will be in
  • 00:11:39
    place, or even if they're going to be in
  • 00:11:40
    place at all, how severely it will be,
  • 00:11:42
    or if it will be amped up or taken down.
  • 00:11:45
    And this is precisely why the CEO of
  • 00:11:46
    ASML is a little bit uncertain about
  • 00:11:49
    next year. He's probably looking at the
  • 00:11:51
    headlines saying that this is an
  • 00:11:52
    uncertainty. It's a risk factor for the
  • 00:11:54
    company. And a CEO's job is to not only
  • 00:11:57
    outline a bright future and direction
  • 00:11:58
    for a company, but also to warn
  • 00:12:00
    investors about probabilities, about
  • 00:12:02
    different risk factors to the company.
  • 00:12:04
    And this is certainly one that he's
  • 00:12:05
    warning about. Now, if we actually look
  • 00:12:07
    at the wording, does the CEO of ASML say
  • 00:12:10
    there's going to be no growth in 2026?
  • 00:12:13
    We're not going to make any gains,
  • 00:12:14
    there's going to be no revenue growth or
  • 00:12:15
    earnings growth. No, he never says that.
  • 00:12:18
    In fact, quite the opposite. He says,
  • 00:12:20
    "We're still preparing for growth in
  • 00:12:23
    2026. We're still preparing for it, but
  • 00:12:26
    because of specific geopolitical
  • 00:12:29
    developments and uncertainties, we can't
  • 00:12:31
    confirm it at this stage. We don't know
  • 00:12:34
    for certain." This is a very soft
  • 00:12:36
    warning about the potentials that could
  • 00:12:38
    happen if there's some ongoing massive
  • 00:12:40
    trade dispute. And you have to look at
  • 00:12:42
    it from the perspective of ASML. They're
  • 00:12:44
    not a US company. They have many clients
  • 00:12:46
    that aren't US either, but they're in
  • 00:12:48
    the mix of selling their devices to
  • 00:12:50
    almost everyone. They want a device that
  • 00:12:52
    every country wants a piece of. So,
  • 00:12:54
    they're trying to sell to everyone. And
  • 00:12:56
    meanwhile, you have President Trump who
  • 00:12:58
    is very brash. He has very aggressive
  • 00:13:01
    negotiating tactics. The US is a
  • 00:13:03
    gigantic country. It's just massive
  • 00:13:05
    economically and just overall a massive
  • 00:13:08
    country. Saying that we're going to put
  • 00:13:10
    these big tariffs on Europe. We're going
  • 00:13:12
    to cause all these restrictions. We're
  • 00:13:13
    going to go toe-to-toe with them. we're
  • 00:13:15
    going to do all these things and that
  • 00:13:17
    creates a little bit of uncertainty. We
  • 00:13:18
    can look further at the earnings report
  • 00:13:20
    and the actual commentary by the CEO.
  • 00:13:22
    The summary from Qualrum on the topic of
  • 00:13:24
    geopolitical and tariff risks. It says
  • 00:13:26
    ongoing trade disputes and tariffs
  • 00:13:29
    create direct and indirect risks
  • 00:13:31
    affecting both cost basis and the end
  • 00:13:34
    market demand. So basically, even if
  • 00:13:37
    these machines themselves aren't hit by
  • 00:13:39
    the tariffs, if the US tariffs everyone
  • 00:13:42
    else, all those consumers that would be
  • 00:13:45
    buying these phones and devices and
  • 00:13:47
    different machines that use the chips
  • 00:13:49
    would also be impacted. So it's not just
  • 00:13:52
    the direct impact that ASML that the CEO
  • 00:13:55
    is warning about. They're also warning
  • 00:13:56
    about any indirect impact. Tariffs are a
  • 00:13:59
    tax on trade. A tax slows down. It adds
  • 00:14:03
    friction to whatever you're doing. So if
  • 00:14:05
    there's less trading going on, there's
  • 00:14:06
    less purchasing of devices that need
  • 00:14:09
    ASML's technology. They're not saying
  • 00:14:11
    that this is for sure going to happen.
  • 00:14:13
    They're saying that this is a warning.
  • 00:14:14
    The management of ASML is working with
  • 00:14:16
    customers and suppliers to mitigate
  • 00:14:18
    direct tariff impacts. They note that
  • 00:14:21
    while they have more control over the
  • 00:14:22
    direct impact of tariffs, they do not
  • 00:14:25
    have as much control over the indirect
  • 00:14:27
    effects. The GDP, customer confidence
  • 00:14:29
    are harder to predict. So we have a bit
  • 00:14:31
    more of a framework of why investors are
  • 00:14:33
    concerned. the geopolitical
  • 00:14:34
    uncertainties, the downstream effects
  • 00:14:36
    this has on GDP, their customer
  • 00:14:38
    confidence, and so on. Meanwhile,
  • 00:14:40
    they're also giving outlook and guidance
  • 00:14:42
    at least over 2025. They say the full
  • 00:14:44
    year 2025 revenue is expected to be up
  • 00:14:47
    15% from 2024. That's fast growth. Where
  • 00:14:51
    I get concerned about growth is when
  • 00:14:53
    it's in the realm of around a a
  • 00:14:54
    Salesforce where it's 7 or 8%. I'd hope
  • 00:14:58
    companies grow a little bit faster, but
  • 00:15:00
    15% is is very fast growth. Salesforce
  • 00:15:03
    is growing fast in 2025. But one thing
  • 00:15:05
    they mention here is even though they're
  • 00:15:07
    giving the guidance for 2025, they've
  • 00:15:09
    pulled their guidance for 2026 saying
  • 00:15:12
    2026 guidance withheld due to
  • 00:15:14
    macroeconomic geopolitical uncertainty
  • 00:15:17
    and customer capex timing. AI related
  • 00:15:19
    demand remains strong but visibility is
  • 00:15:22
    reduced due to ongoing tariff and trade
  • 00:15:25
    policy risks. So the story that we get
  • 00:15:26
    from ASML today is that the fundamentals
  • 00:15:28
    remain very strong. In fact, they're
  • 00:15:30
    getting better. The revenue is growing.
  • 00:15:32
    They're selling more machines. We have
  • 00:15:34
    operating margins ticking up
  • 00:15:35
    year-over-year. We have a very
  • 00:15:37
    profitable business doing immense
  • 00:15:38
    amounts of buybacks and dividends. That
  • 00:15:40
    side of the story looks really good. But
  • 00:15:42
    then we get to the narrative part and we
  • 00:15:44
    have more uncertainty, more cautionary.
  • 00:15:48
    We have concerns about trade policy,
  • 00:15:50
    geopolitical events, restrictions. If
  • 00:15:52
    President Trump ramps things up and amps
  • 00:15:54
    up the intensity on Europe, if they're
  • 00:15:57
    not able to make a deal, that can have
  • 00:15:59
    all sorts of downstream effects on
  • 00:16:00
    ASML's business. So, we have strong
  • 00:16:03
    fundamentals and then we have a
  • 00:16:04
    narrative that looks very unpredictable.
  • 00:16:07
    So, overall, the entire story of ASML
  • 00:16:09
    looks a little bit more unpredictable
  • 00:16:11
    today. Now, my prediction going into
  • 00:16:13
    next year is that ASML will do better
  • 00:16:15
    than what investors are expecting. And
  • 00:16:17
    even though we don't have official
  • 00:16:18
    guidance, I believe that ASML will
  • 00:16:20
    continue to grow. I think they'll grow
  • 00:16:22
    both their topline and their
  • 00:16:23
    profitability. They'll grow their
  • 00:16:25
    earnings and free cash flow per share in
  • 00:16:27
    part by being highly profitable and
  • 00:16:28
    doing immense amounts of buybacks. But
  • 00:16:30
    on top of that, I still think they're
  • 00:16:32
    going to grow topline revenue at a brisk
  • 00:16:34
    pace. When we look at the concerns that
  • 00:16:36
    ASML lists out, they're not unfounded.
  • 00:16:39
    President Trump is being very aggressive
  • 00:16:41
    and he's threatening 30% tariffs on
  • 00:16:44
    Europe, but we've seen a bit of this
  • 00:16:46
    story before. We've seen this play out
  • 00:16:48
    before. My initial thoughts on the
  • 00:16:50
    tariffs was that President Trump would
  • 00:16:52
    use it as more of a negotiating tactic.
  • 00:16:54
    It's more something to get someone to
  • 00:16:56
    the table to put a little pressure on
  • 00:16:58
    them to try to close a deal. So, while
  • 00:17:01
    the 30% number or whatever big tariff
  • 00:17:03
    number President Trump throws out, that
  • 00:17:06
    can seem very high, and of course it is,
  • 00:17:08
    it's also not the number that's going to
  • 00:17:09
    be landed on long term. It's a bit like
  • 00:17:11
    when you go into a store and they have a
  • 00:17:13
    salesperson that says, "Hey, this item
  • 00:17:15
    is normally $50, but here I have it for
  • 00:17:18
    25. What a deal you're getting." You
  • 00:17:20
    know that the first number is not really
  • 00:17:22
    how much the thing normally costs. You
  • 00:17:24
    start off with the big number to make
  • 00:17:26
    the other one seem a lot smaller. And I
  • 00:17:28
    believe that's a lot of the negotiating
  • 00:17:29
    tactics that President Trump uses. He is
  • 00:17:32
    brash. He has a very aggressive
  • 00:17:34
    negotiating style. It's not something
  • 00:17:36
    that I would endorse. I would do it
  • 00:17:37
    differently if I was the president, but
  • 00:17:39
    that's just the case. When I look into
  • 00:17:41
    what's going to happen over the next
  • 00:17:43
    couple of years, I do not believe that
  • 00:17:45
    the US is going to hamper growth,
  • 00:17:48
    especially in AI with enormous taxes. I
  • 00:17:51
    think that this will get resolved a lot
  • 00:17:52
    lower, allowing companies like ASML to
  • 00:17:55
    continue growing. Now, the CEO of ASML
  • 00:17:57
    is correct, and he's being prudent in
  • 00:17:58
    looking at these headlines, looking at
  • 00:18:00
    the threats being given, and showing how
  • 00:18:02
    it could impact the company's long-term
  • 00:18:05
    profits. But the probability of these
  • 00:18:07
    impacts actually being felt is really
  • 00:18:09
    low. For this reason, I believe that
  • 00:18:11
    ASML is still good value today. I think
  • 00:18:13
    the company's going to grow next year.
  • 00:18:15
    And although like the CEO, there's no
  • 00:18:17
    guarantees in investing. There never
  • 00:18:19
    was. Selling the company based on this
  • 00:18:21
    report I believe is a mistake. So, I'm
  • 00:18:23
    still holding all my shares. Now, next
  • 00:18:25
    we have the big banks that reported
  • 00:18:26
    earnings earlier this week. My
  • 00:18:28
    prediction was that the earnings would
  • 00:18:30
    be good and they are great. JP Morgan
  • 00:18:32
    Chase reported earnings. Goldman Sachs
  • 00:18:34
    did. Bank of America did. and all of
  • 00:18:36
    them reported very strong earnings. If
  • 00:18:38
    we look at JP Morgan Chase, this is the
  • 00:18:40
    biggest bank in the world. There's
  • 00:18:41
    multiple parts to JP Morgan. It's very
  • 00:18:43
    diverse. They have consumer and
  • 00:18:45
    community banking. They have commercial
  • 00:18:46
    and investment services. They have asset
  • 00:18:49
    and wealth management. They have
  • 00:18:50
    corporate and so on and so forth. So,
  • 00:18:52
    it's a a very diversified company. If we
  • 00:18:55
    look at all the different segments of
  • 00:18:56
    the business, the commentary on each
  • 00:18:58
    part of it shows a very positive
  • 00:19:00
    picture. For instance, if we look at the
  • 00:19:02
    consumer and community banking segment,
  • 00:19:04
    the revenues were up 6% year-over-year.
  • 00:19:06
    We look at the card services. This is a
  • 00:19:08
    big part of JP Morgan. They have, I
  • 00:19:10
    believe, Visas. They have so many Visa
  • 00:19:12
    cards. Card services and auto revenue
  • 00:19:14
    rose 15% due to higher revolving
  • 00:19:16
    balances and lease income with cards
  • 00:19:19
    outstanding up 9% following strong new
  • 00:19:22
    account acquisition. So, the the whole
  • 00:19:25
    story about stable coins and credit
  • 00:19:27
    cards or cards being antiquated, Visa
  • 00:19:31
    cards are up 9% for JP Morgan
  • 00:19:33
    year-over-year. In commercial and
  • 00:19:35
    investment banking, the revenue is up
  • 00:19:37
    9%. They have net income growth. They
  • 00:19:39
    see revenue across the board with
  • 00:19:41
    commercial investment banking services
  • 00:19:42
    growing. With asset and wealth
  • 00:19:44
    management, the revenue is up 10% driven
  • 00:19:47
    by strong management fees, net inflows,
  • 00:19:49
    and higher market levels. This is great
  • 00:19:51
    stuff. If you're a JP Morgan Chase
  • 00:19:53
    holder, you're happy reading through
  • 00:19:54
    this report. There's no weaknesses here.
  • 00:19:56
    So, there's no big surprise here. We
  • 00:19:58
    have Goldman Sachs basically saying the
  • 00:20:00
    same thing. Both of these companies are
  • 00:20:02
    up big this year. 21% for Goldman Sachs.
  • 00:20:05
    We have JP Morgan up 19% not counting
  • 00:20:07
    the dividend. So, the big banks are
  • 00:20:09
    doing incredibly well. Now, moving on,
  • 00:20:11
    we get to the breaking news headline
  • 00:20:12
    that apparently Trump has indicated he
  • 00:20:15
    is likely to attempt firing drone pal
  • 00:20:17
    soon. This is from administration
  • 00:20:20
    officials and this has been posted
  • 00:20:21
    around. It wasn't just a rumor. There
  • 00:20:23
    are many people saying that this was
  • 00:20:24
    being floated around as an idea. Now, of
  • 00:20:27
    course, Drone Pal is the Fed chair. He's
  • 00:20:28
    the one deciding the monetary policy of
  • 00:20:30
    what the federal funds rate is at. Now,
  • 00:20:32
    Drone Pal has two different mandates.
  • 00:20:34
    One of them is maximum employment.
  • 00:20:36
    People that want to find a job are able
  • 00:20:38
    to find a job. The other is stable
  • 00:20:39
    prices. So, the other is dealing with
  • 00:20:41
    inflation. The tool that he has, the
  • 00:20:44
    federal funds rate, has impacts on both
  • 00:20:46
    of these. For example, if unemployment's
  • 00:20:49
    really high, a way that you can help out
  • 00:20:51
    with that is by lowering interest rates.
  • 00:20:53
    Lowering interest rates heats up the
  • 00:20:55
    economy. It's a catalyst for it. It's a
  • 00:20:57
    stimulus for the economy. Lowering
  • 00:20:59
    interest rates makes capital cheaper. To
  • 00:21:01
    get a loan from the bank, you can do it
  • 00:21:03
    with a cheaper amount of interest. So,
  • 00:21:05
    the banks are more eager to loan out
  • 00:21:07
    money. People are more eager to take
  • 00:21:08
    money from the banks. People are more
  • 00:21:10
    eager to buy new houses because houses
  • 00:21:12
    now have lower interest rates. It spurs
  • 00:21:15
    growth. It spurs lending. It spurs
  • 00:21:17
    hiring. And it lowers the unemployment
  • 00:21:19
    rate. But then you have the other half
  • 00:21:21
    of his mandate, which is stable prices.
  • 00:21:23
    If you were to heat up the economy as
  • 00:21:25
    much as possible, stimulate it as much
  • 00:21:27
    as possible, lower interest rates as
  • 00:21:29
    much as you can, well, that has another
  • 00:21:31
    effect. And we saw that in 2021. You
  • 00:21:34
    have inflation starting to pick up.
  • 00:21:37
    Inflation grows and grows as there's
  • 00:21:39
    more demand than there is supply. prices
  • 00:21:42
    become less stable and people don't like
  • 00:21:44
    unstable prices. So drone pal is trying
  • 00:21:46
    to balance both of these things and over
  • 00:21:48
    the past number of years I think he's
  • 00:21:50
    done a decent job. It's not a perfect
  • 00:21:53
    job. You can certainly cast criticism at
  • 00:21:56
    them, but I believe the Fed chair is one
  • 00:21:57
    of the most difficult jobs you can do.
  • 00:22:00
    It's also one of the easiest ones to be
  • 00:22:02
    an armchair analyst, to look at what you
  • 00:22:05
    could have done in certain situations
  • 00:22:07
    better. But to look at all the data,
  • 00:22:09
    everything holistically, and make
  • 00:22:11
    decisions based upon that, I think
  • 00:22:12
    overall he's done a decent job. Now,
  • 00:22:14
    President Trump doesn't agree with that.
  • 00:22:16
    He thinks that JPAL's done a terrible
  • 00:22:18
    job. He's called him all sorts of names
  • 00:22:20
    that he's dumb, he's a slow person, you
  • 00:22:22
    know, not an intelligent person. Uh so
  • 00:22:25
    he's he's kind of branding him as this
  • 00:22:27
    bad guy that's not great at his job.
  • 00:22:29
    He's in fact incompetent at being the
  • 00:22:31
    Fed chair. We're also seeing these
  • 00:22:33
    reports that President Trump indicated
  • 00:22:35
    to Republican lawmakers on Tuesday that
  • 00:22:37
    he is likely to attempt removing Federal
  • 00:22:39
    Reserve Chair Jerome Pal from his job
  • 00:22:41
    soon, according to senior administration
  • 00:22:44
    officials. The official said the
  • 00:22:46
    president asked lawmakers during a
  • 00:22:47
    meeting at the White House how they felt
  • 00:22:49
    about firing the Fed chair and several
  • 00:22:52
    expressed support for attempting to oust
  • 00:22:54
    him. Trump then suggested he could move
  • 00:22:56
    to fire him in the near future. The
  • 00:22:58
    official said now there are a number of
  • 00:23:00
    issues with this idea. One of them, in
  • 00:23:02
    fact, I believe the primary issue is
  • 00:23:04
    that the president can't fire drone pal.
  • 00:23:07
    Drum pal is not an employee of the
  • 00:23:08
    president. They are separated. In fact,
  • 00:23:10
    they're not even supposed to be uh
  • 00:23:12
    combined in any way. They're supposed to
  • 00:23:14
    be distinct separate entities. The
  • 00:23:17
    president has no power to directly fire
  • 00:23:19
    drone pal. And if we look at J Pal's
  • 00:23:21
    commentary on this, he seems to know his
  • 00:23:24
    law and his rights in the role that he's
  • 00:23:26
    in. He's asked specifically what he
  • 00:23:27
    would do if the president decided to
  • 00:23:29
    fire him.
  • 00:23:30
    Some of the president's elect's advisers
  • 00:23:32
    have suggested that you should resign.
  • 00:23:35
    Um if he asked you to leave, would you
  • 00:23:37
    go?
  • 00:23:38
    No.
  • 00:23:39
    Uh can you follow up on is do you think
  • 00:23:42
    that legally he you're not required to
  • 00:23:44
    leave?
  • 00:23:45
    No.
  • 00:23:46
    Do you believe the president has the
  • 00:23:47
    power to fire or demote you and has the
  • 00:23:50
    fed determined the legality of a
  • 00:23:52
    president demoting at will any of the
  • 00:23:54
    other governors with leadership
  • 00:23:55
    positions?
  • 00:23:56
    Not permitted under the law.
  • 00:23:58
    There are his answers and they're rather
  • 00:24:00
    definitive. He didn't leave any gray
  • 00:24:02
    space. There's no, you know, maybe I
  • 00:24:05
    would consider stepping down if the
  • 00:24:07
    president wanted me to leave. I I would
  • 00:24:09
    put it under consideration. No, there is
  • 00:24:11
    none of that. He says if the president
  • 00:24:13
    tries to fire him, it's not going to
  • 00:24:15
    happen and he'd continue doing his role.
  • 00:24:17
    And when someone asks him about whether
  • 00:24:18
    or not the president can fire him, he
  • 00:24:21
    says it's legally not permitted under
  • 00:24:23
    the law. Drone Pal intends to work the
  • 00:24:25
    rest of his tenure. Now, even though the
  • 00:24:27
    president doesn't have the direct
  • 00:24:28
    ability to fire drone pal, he can wage a
  • 00:24:31
    campaign against him and maybe oust him
  • 00:24:33
    through roundabout ways. There's
  • 00:24:35
    different legal opportunities to maybe
  • 00:24:37
    try to get him out of that position
  • 00:24:39
    without technically firing him. But most
  • 00:24:41
    of that relies on drone pal doing
  • 00:24:42
    something extreme, something
  • 00:24:44
    disqualifying for his position. And
  • 00:24:46
    overall, drone pal hasn't done any of
  • 00:24:48
    that. In fact, drone pal represents the
  • 00:24:50
    broad agreement of the overall Fed. The
  • 00:24:53
    thousands of people working there. All
  • 00:24:54
    the different Fed members are in overall
  • 00:24:56
    agreement with them. Some opinions
  • 00:24:58
    diverge on when we should lower interest
  • 00:25:00
    rates, but he has the backing and the
  • 00:25:03
    support of his team. So, you can't
  • 00:25:05
    really fire him based on the premise
  • 00:25:07
    that he's way out of turn, that he's
  • 00:25:09
    acting or behaving way outside of his
  • 00:25:11
    role. None of that applies here. Now,
  • 00:25:13
    just a very recent update on this. We
  • 00:25:15
    have President Trump here in the White
  • 00:25:16
    House and he's asked specifically about
  • 00:25:18
    this news. This was just an hour ago.
  • 00:25:20
    But he's he's uh I think he does a
  • 00:25:23
    terrible job. He's costing us a lot of
  • 00:25:25
    money and we fight through it. It's it's
  • 00:25:27
    almost the country's become so
  • 00:25:30
    successful that it doesn't have a big
  • 00:25:32
    impact. But uh it does hurt people
  • 00:25:34
    wanting to get a mortgage. Uh people
  • 00:25:37
    want to buy a house. He's a terrible
  • 00:25:39
    he's a terrible fetcher. I was surprised
  • 00:25:42
    he was appointed. I was surprised,
  • 00:25:44
    frankly, that uh Biden put him in and
  • 00:25:47
    extended him, but uh they did. So, no,
  • 00:25:52
    we're not planning on doing anything.
  • 00:25:53
    We're very concerned. Right there, he
  • 00:25:55
    says it. We're not planning on doing
  • 00:25:57
    anything. We're just really concerned.
  • 00:25:59
    He seems to have completely walked back
  • 00:26:01
    the idea of firing him, at least acting
  • 00:26:03
    upon it. And maybe this internal report
  • 00:26:05
    was just incorrect, but it seems like
  • 00:26:07
    they toss the idea around and realize
  • 00:26:09
    that they don't have a legal way of
  • 00:26:10
    accomplishing what they want to
  • 00:26:11
    accomplish. So instead of firing him,
  • 00:26:13
    they're going to continue to brand him
  • 00:26:15
    and paint him out to be the problem
  • 00:26:16
    here. You can have your opinion on
  • 00:26:18
    Jerome Pal. Maybe you agree with
  • 00:26:19
    President Trump, maybe you don't. But
  • 00:26:21
    this is the politics of the situation.
  • 00:26:23
    Now, if President Trump really tried to
  • 00:26:26
    fire Jerome Pal, I think that'd be
  • 00:26:28
    really bad for the markets. It would not
  • 00:26:30
    be a good look. The markets would be
  • 00:26:32
    better served if Jerome Pal served the
  • 00:26:34
    rest of his term until early next year,
  • 00:26:36
    then they replaced him with the person
  • 00:26:37
    they wanted. But firing them in advance
  • 00:26:39
    would be such a bad look for the
  • 00:26:41
    markets. It would cause a huge red day.
  • 00:26:43
    Now, finally, we get into some news
  • 00:26:45
    about Amazon. This is a company that
  • 00:26:47
    they have so many different projects
  • 00:26:48
    they're working on, it's hard to keep
  • 00:26:50
    track of it all. We have Project Kyper.
  • 00:26:52
    This is very similar to Starlink where
  • 00:26:54
    Amazon plans to offer satellite internet
  • 00:26:56
    service in late 2025. So, by the end of
  • 00:27:00
    this year, there could be customers
  • 00:27:01
    hooked up with their new satellite
  • 00:27:03
    service. They'll have the the dishes
  • 00:27:05
    like the Amazon ones and they can have
  • 00:27:07
    it very similar to Starlink. Amazon is
  • 00:27:09
    planning on offering three tiers of
  • 00:27:10
    their broadband service. There is the
  • 00:27:12
    ultra compact satellite antenna that
  • 00:27:14
    manages speeds of up to 100 megabits per
  • 00:27:17
    second. So this is like this is like the
  • 00:27:19
    the Starlink Rome, the mini, right? The
  • 00:27:22
    ultra compact. Then you have the
  • 00:27:24
    standard antenna speeds up to 400
  • 00:27:26
    megabits per second. Then you have the
  • 00:27:27
    large model with speeds up to 1 gigabit
  • 00:27:30
    per second. That's incredible that
  • 00:27:32
    you'll have satellite internet that is
  • 00:27:34
    far faster than broadband internet.
  • 00:27:37
    That's the world we're living in now.
  • 00:27:38
    Analysts are now saying that they see a
  • 00:27:40
    compelling opportunity here. Potentially
  • 00:27:42
    strong long-term margins given the high
  • 00:27:44
    upfront costs. There's only two
  • 00:27:46
    companies so far that have done this.
  • 00:27:48
    One is SpaceX, the other is Starlink.
  • 00:27:50
    The cost of actually making this happen
  • 00:27:53
    is so extensive that there's not many
  • 00:27:55
    companies in the world that have the
  • 00:27:56
    financial situation or the investor base
  • 00:27:59
    patient enough to make these type of
  • 00:28:00
    investments. You have a private company
  • 00:28:02
    which is Starlink which has very
  • 00:28:04
    long-term investors, private company,
  • 00:28:06
    but then you have Amazon, one of the
  • 00:28:08
    rare public companies that has the
  • 00:28:10
    investing discipline and the base to be
  • 00:28:13
    able to wait out these long-term gains.
  • 00:28:15
    So, a very unique situation for Amazon
  • 00:28:17
    here. It gives you access to something
  • 00:28:20
    similar to Starlink, although not the
  • 00:28:22
    same. They don't have the rockets
  • 00:28:23
    they're launching themselves. They just
  • 00:28:24
    have the satellite internet. Amazon has
  • 00:28:26
    a lot of synergies that would happen
  • 00:28:28
    with Project Kyper. There's a lot of
  • 00:28:30
    ways that they could use Project Kyper
  • 00:28:31
    to advance the rest of their businesses.
  • 00:28:34
    You have data transfer for AWS clients.
  • 00:28:36
    Project Kyper will be able to offer
  • 00:28:38
    clients private connectivity to AWS
  • 00:28:40
    without routing data through public
  • 00:28:42
    internet. So, they can link this tool
  • 00:28:44
    with every other aspect of their
  • 00:28:46
    business. and it highlights Amazon
  • 00:28:47
    logistics. Amazon will be able to better
  • 00:28:49
    manage its own logistic assets with its
  • 00:28:51
    always on connected network. While
  • 00:28:53
    mobile networks cover most of the US, a
  • 00:28:56
    satellite network could offer better
  • 00:28:58
    connectivity on the ground and airborne
  • 00:29:00
    assets. Amazon could connect to its
  • 00:29:03
    future robots and drones through Project
  • 00:29:05
    Kyper. So, if you have robots delivering
  • 00:29:07
    packages and in places where you have
  • 00:29:09
    spotty internet, Amazon could have a
  • 00:29:11
    solution there with their own Project
  • 00:29:13
    Kyper. It's exciting to see the progress
  • 00:29:15
    of this project Kyper and I believe it
  • 00:29:17
    is going to be a revenue generating and
  • 00:29:19
    even a profit generating aspect of the
  • 00:29:21
    company very soon. I could see next year
  • 00:29:23
    that Amazon also has advantages in
  • 00:29:25
    marketing and selling this product.
  • 00:29:27
    While Starlink has to sell it
  • 00:29:29
    indirectly, they have to make marketing
  • 00:29:31
    campaigns for it and word of mouth.
  • 00:29:33
    Amazon can plaster it on their homepage.
  • 00:29:35
    You go to amazon.com to do your normal
  • 00:29:38
    shopping and then you have a satellite
  • 00:29:40
    there with Project Kyper discounted for
  • 00:29:41
    members included as part of Amazon
  • 00:29:43
    Prime. They'll do what they can to get
  • 00:29:45
    you owning one of their devices. So, I
  • 00:29:48
    believe they have a lot of ways to
  • 00:29:49
    market this as well. We'll have to
  • 00:29:50
    continue following it and see how this
  • 00:29:52
    ultimately turns out. That's all for
  • 00:29:54
    this episode. Hope you enjoyed. See you
  • 00:29:55
    in the next one.
Tag
  • ASML
  • earnings report
  • stock market
  • geopolitical risks
  • tariffs
  • Project Kyper
  • Amazon
  • JP Morgan
  • Goldman Sachs
  • Jerome Powell