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The Software Rotation Under the Hood | $IGV $PLTR $NOW $ZETA $KRKNF $SPY $QQQ
Recorded: March 4, 2026 Duration: 0:38:05Space Recording
Full Transcription
well here we are and who would have thought that software was going to make a massive bounce that
it did plus we had some good news from ir Iran as far as secretly coming to the CIA with
an offer to end the war, aka surrendering. On top of that, we had a new Fed chair officially
nominated. So Fed chair Kevin Warsh, upon being accepted by the Senate, will be our next Fed chair
and what that means to you. I will explain that all to you.
And finally, we're going to get a little bit into Kraken Robotics. This has come up more than a few
times in my feed. I kind of want to dig into it a little bit with you guys, along with talk about
a recent acquisition that they announced yesterday and what it might mean for the future
for Kraken Robotics. We all do know a few things about them, so we're going to kind of dig around yesterday and what it might mean for the future of anthrop i'm sorry for uh
cracking robotics we all do know a few things about them so we're going to kind of dig around it together and figure out what's going on and finally i did want to talk a little about anthropic
they have like a 19 billion dollar error or some news that came out yesterday i want to play a
cool clip and that is obviously the thumbnail the video i mean you have giga chad or I guess Giga Dario on there looking all chiseled and everything.
I don't know.
This guy must be on like GLP one or something because he's losing some weight.
But anyways, let us get right into it.
How is everyone doing?
What is going on?
Omer, what's going on?
Jake, Nick, how are you, sir?
Alfie, Jake, this snake.
I actually like that.
Jake, the snake.
That's one of the nicknames I
gave to my buddy in high school. We actually talk pretty often. And yeah, his name is Jake,
and I guess he is the snake. He is still Jake the Snake. All right, so let's get into the show.
The first thing that we're going to talk about over here is Anthropic, $19 billion ARR. They
did release some news yesterday as far as how much
you're getting i do want to play the cnbc clip for you guys to kind of go over that a little bit
longer and see what actually is happening right in anthropic and who the beneficiaries actually
might be of this there are a few companies out there that have stake in anthropic and they have
like multi-bagged from then and they still
of course continue to hold. So let's go ahead and take a look at that clip first. See what's
going on over here on the panel of loads turn to Anthropic. Some new reporting surrounding
its growing revenue numbers. Kate Rooney joins us now. My biggest question, Kate, is this
is this before or after the fight with the Pentagon? Right before, Sarah, these are sort of current numbers
as of the last couple of weeks here,
but really during, and you mentioned that face-off
with the Pentagon, while that was happening,
its AI business has been booming behind the scenes,
at least from what we're hearing.
I am now hearing that Anthropics' annual revenue run rate,
ARR, has topped $19 billion.
It's nearing $20 billion.
This is according to a source familiar
with that company's financials. It's based on current performance, Sarah. So as you mentioned,
during all of this back and forth with the Pentagon, up from $10 billion just at the end
of last year. You look at a month ago, the run rate was $14 billion when Anthropik closed its
latest funding round. That valued the company at $380 billion.
Anthropik's still not profitable. I'm told it's still losing billions per year. A source also
telling me the revenue momentum is largely thanks to the success of Claude Code. So before the
Pentagon spat, I mean, this was only a couple of years ago, weeks ago, excuse me, the buzz
around Anthropik was really around its coding capabilities. The improving
features were one of the big factors, spooking software investors and threatening their business
models. Anthropoc's momentum also really speaks to what's at risk here. With that Pentagon fight,
the growth is under threat as the Pentagon now labels the company as a supply chain risk. We
are seeing some defense companies dropping Claude after the Pentagon's announcement.
Reuters now reporting that Lockheed Martin is expected to remove anthropics technology
from its supply chain.
CNBC.com has another look today at startups doing the same out of an abundance of caution.
I am hearing similar themes for investors and CEOs in Silicon Valley.
Their startups are now looking for alternatives and many really built their companies.
Their startups entirely on Claude, on that technology. The president also directed all government agencies to stop using Claude with a sort of six-month ramp-off period.
But for now, I am told by a source, U.S. military is still using Claude for operations in Iran, guys.
Although we continue to see reports, Kate, that it has been extracted from, say, Treasury, from Department of State, some other
agencies, right? Yeah, and it's entangled in a lot of these. I've talked to sources who say
it's going to be a long time before they can sort of figure out how to replace Anthropic that may
be OpenAI based on them signing sort of a new government contract on Friday. But it can be
tough to sort of undo, unwind some of this technology.
And once it's really integrated with whether it's the government or an enterprise,
I mentioned the sort of growth threat as we talk about that supply chain risk.
A lot of these companies have been entirely built on top of Claude. You talk about sort
of these wrapper AI startups that really are powered by AI. Claude has been seen
as sort of the go-to for a lot of startups. You have the government needing to unwind,
potentially startups, potentially enterprises. And I think we're going to see
long-term effects if that supply chain risk designation does actually stick.
All right. So they are obviously doing well in terms of the annual recurring revenue now what
does this actually mean for all of us right so let's take a step back over here we had the most
the largest sell-off we've had in igb igb software etf since 2022 and since then i feel like we kind
of bottomed over here we're going to take a look at some charts in a minute, see how some software stocks
are doing, which I think they're doing considerably good.
And now it's kind of, I guess, being reversed here because now you have the government and
Tampa stepping in on Anthropic, trying to ban them from all this stuff.
That was like the news last week.
It was the news earlier this week as well.
But I feel like that news is kind of dissipating a little bit as people start to realize like,
look, maybe this got a little bit out of hand hand which is exactly what I was saying in my book the question
was when is it actually going to end today to this day we don't actually know when it's going
to end but there obviously is that underlying fear there that look when you have all this
agentic AI and cloud capability you could possibly reduce your overhead by paying all these licenses
apologies I did not have my microphone right over here so maybe that didn't sound too loud but could possibly reduce your overhead by paying all these licenses. Apologies.
I did not have my microphone right over here.
So maybe that didn't sound too loud, but you could have all of these technologies basically work to be able to create an in-house app, which OpenAI did announce that they created
an in-house data agent that many employees do use.
So if we traverse this and project this onto other companies that are paying hundreds of millions of dollars collectively for software, maybe they don't need it if they're
able to build something in-house. Now, my rebuttal against that is that one, you're not going to build
an internal cybersecurity tool and completely get rid of CrowdStrike or Palo Alto, whatever they
use immediately. That's going to take a lot of time. It's going to have to go through compliance
because I have to go through rigorous testing and so on. You have teams that's going to take a lot of time it's going to have to go through compliance because i have to go through rigorous testing and so on you have teams that you have to build around
it in order to be able to um get that into production where that is now your cyber security
product crowd strike palo alto and all these companies already had their already had their
software vetted and tested right they already went through all the penetration tests supposed to they
already went through all the compliance whatever it is of course these
companies have to go through the compliance when they onboard the software but CrowdStrike
did that work for you you're not just buying the CrowdStrike Falcon application or platform you're
buying the whole thing you're buying the fact that you have a multi-billion dollar company that's
done this for years able to bring it to your table out of the box vanilla shipped
and ready to go you can't build an internal application with the jetting ai in two weeks
and just replace your entire system that's going to take a lot of time and i think that's where
the market came in where the market was fearful like oh my goodness we don't need service now
anymore because some some um internal employee or some engineer internally built an application in
two weeks and we can roll that out so now we don't need to pay millions of dollars to service down Bill McDermott we could
just do this on our own that's not how it's going to work there's multiple workflows multiple testing
and entire teams that are vetted out there to continuously iterate on this process to develop
new features and push them out to production support teams that make sure applications are
working fine on top of that you have product management teams that make sure applications are working fine. On top of that, you have product management teams
that are able to facilitate the transition of new features
into the system as well as fixing any bugs.
There's a lot more to this that the market got ahead of itself.
And in my opinion, it's very possible
we might have saw a short-term bottom in IGV.
I want to pull up some charts over here, take a look.
I do not have any positions in IGV,
I have positions in software
companies um that uh i've had for quite some time so i'm gonna continue to hold those let's take a
look at a chart we'll get a little bit more into it whoa holy smokes uh let me actually share this
real quick man it looks like um looks like indiector is really taking a hit after that dilutive event they had yesterday.
All right. So we have the S&P 500 up here at about 1% still. While it is nice to have this
massive bounce we've had here, especially off of the 100-day moving average, I believe.
No, that's the weekly. So the 100 day moving average, it did gap up above
the 100 day moving average, we actually had one of the first closes below the 100 day, actually,
the first close below the 100 day moving average on spy in a long time, you see here that we've
have tested it multiple times, especially last November, but we've always had that massive rip
to basically go up it. And we've seen it get
bought over and over and over again, every single time it dropped. And we continue to do the same
here. But if you look over here on this chart, it still, it looks better, but yeah, you have
possibly either a chop more sideways or trend continuation to go down right so we've seen this happen before where
it recovers all the moving averages and boom massive rejection not sure if that's going to
happen but this time around what we do see is that the 20-day moving average move below the 50-day
moving average so let's keep that on the radar and sp500 now is selling above the or is trading
above the or it's coming into the 50 EMA on the daily and still above the
9 and 21 EMA. All right, let's look on the weekly chart for the S&P 500. Looks a lot more
constructive, looks a lot more bullish. It would have been a nasty fall if we closed below the 21
EMA on the weekly. Let's take a look at the Qs over here. Qs, constructively better. The Qs are
obviously outperforming today, which is really good to see. If we drill down to
some of the sectors over here on the S&P 500, we can see here that financials are doing a lot better.
However, they are still trading below the weekly 21 EMA, which is not really a good sign when you think of a downward trend
on the daily financials are still not doing good trading well below the short-term moving average
so we do need that to continue happening xly which is consumer discretionary amazon and for the most
part it's amazon and tesla uh considerable balance today it's up about two percent here trading above
the 200 day moving average xlk which is your apple microsoft and nvidia is trading back above the 20-day moving
average and recovering some support here bouncing off the 200-day moving average so this was kind
of an ideal point to get back in here now let's take a look at igv igv continues to progress pretty
positively here and in my opinion this is going to help support
the bullish move in igv now we it still overall is not a good looking chart this is still a
trending down chart even though you're getting a little bit of an upheaval here but you are back
above the 21 ema on the daily in addition to that on the weekly though you have bounced off the 200
weekly moving average which
is considered as support and has been for quite some time obviously you had the 2022 bear market
but you could see over here it's traded above the 200 weekly moving average for quite some time and
had its first test in years i mean like it hasn't it didn't even come below the 200 a week uh
last april the last time I tested this was back
in 2023. So that's very interesting to see this happen. Obviously everyone remembers what happened
last year when it got near there, it totally got bought up, but much different scenario because
back here in April, the S P 500 was down 23% from its all time highs on an intraday perspective
today. It's down like one or two percent from its all-time
highs so it really doesn't make sense to me i'm still a little bit cautious i'm still holding my
software positions but under the hood for a lot of software stocks things are definitely looking
a lot better than they did last week if i scroll down here to my software basket we could see here
that service now is trading around 115, which is obviously not a
good looking chart still. If we do look in the daily, we did recover that 21 EMA, that 9 EMA.
Oh, someone's trying to log into my trading view, as well as the 20 day moving average.
So looking a lot better. One of the software stocks that you guys know I'm very bullish on
is Zeta Global. Definitely looking a lot better better in my opinion. And I call this out
on Twitter to the subscribers. As far as what I'm seeing with Zeta, I did not size up in this
position. I want to see some continuation here. If we get back above these moving averages,
I'd rather size up in terms of short-term calls. If the market looks a lot healthier.
And also if we get it back above the 50, 50 day moving average, but this is
certainly looking a lot better. And in my opinion, the company still trades pretty cheap. Palantir
was the first to bottom out of all these software stocks because they were used in terms of the
Middle Eastern warfare when we attacked Iran and they disclosed it. Even when they're throbbing,
and they disclosed it even with a throbic they disclosed it and this thing has reversed course
very very rapidly palantir here on a volume candle has had pretty decent volume days before
and we're going to see this close out we still have one more hour for the market to close so
it's likely not going to fill in this volume right here and finally i did enter a position yesterday um amperis which is more on the battery for
drone technology in addition to other robotics this is up about seven and a half percent shout
out to the people who followed me on that one that one's doing pretty well one of the things
that i did call out here is that it broke above these moving averages and closed well above them
which would probably facilitate further upside so So that position is doing quite well, still sticking mostly to shares, but that is how
far things are going on in my book. Uh, same here did raise my cash positions of swing trading.
Thanks to the sideways moving. Yeah. I mean, honestly, if you're like a trader,
swing trading gets very difficult in these scenarios because of the fact that we basically
been shopping sideways since October. So if you're swing trading, you probably want to
set stops a little bit closer here, and you probably want to take profit a lot sooner and
just leave some runners on the table if you do want to do that sort of thing. For me, I'm trying
to do some swing trading, but more on a longer timescale. But that does involve sitting through
some chop, sitting through some short-term drawdown. But at the end of the day, we're still doing quite well in the year and not as good as we
were certainly doing in the beginning of the year, but certainly not nearly as bad as a lot
of people who've gotten murdered out there. So I wanted to step into the next portion of the
segment and go, we already went through the anthropic 19 billion of what that might mean.
Is it a fact we actually see here that Amazon is up about like 3% today, which is pretty
crazy, but that's also good news because if you are having a resolution of the Strait
of Hormuz incident, or Iran is basically under the radar surrendering to us, then it's possible
that we might be able to see supply chain, supply chain and logistics improve.
Therefore, the uncertainty is
off the table so what does that mean for stocks that means for e-commerce companies are generally
gonna do a lot better as long as supply chain is not disrupted these companies have to ship a lot
of materials globally okay so what is the number one scare when we think about the war okay honestly
i'm not going to be um insensitive to the things that are happening
out there. People are dying and some people are dying. Okay. I get it, but we're here to talk
about the stock market. So let's discuss that. If you have conflict, especially in the middle
East, you are talking about a lot of fuel being used, a lot of tension on top of that. The fact
that it's the middle East great exporters of the entire world of oil are based over there.
So you're disrupting that whole supply chain by having war.
So actually, StockSniper explained this very well earlier on the BitGet space.
And the thing that we need to remember is that if you have any type of disruption in terms of the oil logistics,
that will cause an issue where supply gets constrained and demand
goes higher so in terms of the stock market when you constrict supply and you increase demand you
are basically elevating the price of barrels of crude oil which in this case oil went up as much
as 75 to 80 dollars if that happens there's an underlying fear that this is going to dissipate into other realms
of the stock market when you increase oil prices that affects everything it doesn't just affect
travel because if you think about transporting all these products around the entire world
that means they have to increase the cost to their clients and if those clients have to increase the
prices of their goods that means they have to pass those costs over to the consumer. And if the consumer sees higher prices,
they might either buy less or they might not buy at all. And if that happens, revenues go down. If
revenues go down, earnings go down. And that is the effect of seeing higher oil prices in the
stock market. Of course, there is the fed in this scenario and so on
but that is the downstream effect of seeing higher oil prices inflation leads to higher prices
higher prices means a more strained consumer a more strength consumer in a very fierce consumer
driven economy will lower gdp and therefore lower output, meaning that the Fed
might not increase rates as much if inflation stays sticky. It is always the Fed guys. 99% of
the time it is the Fed. Don't fight the Fed. All right. So I'm going to hammer that one home. You probably heard that so
many times. And I apologize. I've actually been talking so much and I'm not really feeling well
today. But yeah, let's move on to the next segment. Actually, I want to touch on this.
The market is overly optimistic with a resumption, the straight hormone CNBC,
but also other sources. Now, that's very true. I mean, when you think of the pendulum swinging back and forth, okay,
people get very bearish. And then what happens? The pendulum swings back. It doesn't have to
swing all the way back in terms of physics and especially in the stock market, but things tend
to bounce very quickly and form like a V-shaped bottom. The problem is that the pendulum can
easily swing back. And that's where the biggest question about all this is will the pendulum swing back for me i'm still a little
cautious i'm not trying to press anything crazy um i've been pretty defensive the whole year not
trying to go uh boss wall bullish or anything like i have been since april into like late last summer
october was like the hey guys or hey sam you need to like chill out with a lot of the trading
and call buying and everything like that. That was like the line in the sand for me. Um, and that
continues to be the case this year. All right. So let's move on to the next segment. Warsh is
officially nominated as the fed chair. All right. I actually had some, uh, I, I had a tweet that I released on this one. Oops, I'm on the wrong account. All right.
So here we go. Oh, that's not mine. All right. All right. All right. All right. All right. Over
here. So we had Kevin Warsh nominated as the new Fed chair,
which of course the nomination letter came from the president's office
and he has to get voted into the Senate before he serves 14 years,
which would start from the nomination of February 1, 2026.
So 14 years is a long time.
Can you really believe that Jerome Powell was the Fed. So 14 years is a long time. Can you really believe that like Jerome Powell was
the Fed chair for 14 years? Like it's just, it's so, it's so weird to fathom that because when we
think of the Fed, we've been thinking about Powell and now we're going to think about Kevin Warsh.
Like it's, it's going to be weird fathoming that, but of course we have all the memes and everything
that are going to start coming uh Kevin Warsh
is um he's portrayed as being pro crypto now is he actually going to enact on those beliefs we'll
see but crypto is certainly uh rising uh since then actually let's take a look at the crypto chart
real quick and let's take a look at some technical analysis over here all right right here so we have over here crypto
is at 73.5k that's a monster green candle guys like that is like wow that's actually one of the
largest volume candles we've seen since basically last february when we had that massive drop in
crypto um this is a huge candle over here so it still needs to
get back above it needs a lot of work here in the daily i mean it's nice to see that it's above the
short-term trend lines um but we do need to see some recovery here on the weekly chart like this
still is a horrendous chart so like am i buying crypto right now no i already added like very
small size to my long-term portfolio in crypto but i don't plan to do oh wow bmr is up 10 kudos
to people who might have caught the dip in that one but i mean geez unless you like waited until
yesterday to buy bmr like you are just red in this position so guys you got to be careful what
you tack on when you're trading stuff in the stock market also like what you're buying like do your
due diligence through your research and don't like follow up to stuff because all your friends and
all your buddies are buying it you know do your own research
build your own conviction and if you really did have that conviction you'd have no problem holding
in fact you'd probably add to the position if you really did believe in the bm and our thesis um but
if you didn't and you held well i'm sorry i mean i i don't say like lesson learned i guess but uh
crypto is looking a lot better today than it did yesterday
that weekly chart actually isn't that bad either but uh we still need some volume developing on
this candle this is a daily chart weekly chart uh it still has some volume needs to develop like
this was like a massive like sell over here like look at all this volume in the weekly right like
this is you don't want to knife catch this you want to kind of buy it or I'm I would I would
probably start swinging if you like start the 108 moving average over here.
But it is nice to see that we didn't go below the 200 week.
But we are well below all the moving averages.
With that being said, Kevin Warsh is pro-Bitcoin.
He believes that Bitcoin constitutes or could be a store of value.
He's not like a Bitcoin maxi bull or anything,
but he certainly is not afraid of it. He said it many times in previous interviews.
The thing that Wall Street really needs to keep an eye on or that we need to keep on with Kevin
Warsh is how in favor is he going to be a monetary expansion? Is he planning to not constrict the
balance sheet? Because when you think about Qt or quantitative tightening you're literally taking liquidity out of the system but if he is uh if he is expanding monetary policy or
if he's fiscal spent or he's he's facilitating the monetary spending uh toward fiscal policy
is basically funding the government through buying the treasuries um then that could definitely be a
lot more upside in the stock market if that does continue. That's the big question, right? What is he going to do when he
gets in office? Now, again, you guys already know me. I'm not going to sit over here and tell you
what is going to happen, right? I can tell you what I think is going to happen, but nothing's
ever for certain. And like I say all the time, guys, if someone tells you that they know exactly
what's going to happen, stop stop, like, don't,
don't listen to that person. Don't follow them. Don't listen to them. No one is ever right. A
hundred percent of the time people are usually wrong, but we're in a game of probabilities.
Okay. Where if you have like a 56% chance that something's going to happen and you take a bet,
a hundred times on it, you have your edge. You're going to win 6%, actually more than you're
going to win about 12% more than how much you're going to lose. The thing is that you need to make
more money when you win and lose less when you lose. So basically you need to admit you're wrong
and holding BMNR through a 50% plus drawdown, 60% drawdown, you better believe what you're buying,
or you better have conviction of what you're buying otherwise you don't know if it's going to be 60 bucks again okay so you got to be careful
with that you got to be careful with that uh am i covering broadcom oh wait do they actually report
earnings today let's take a look at the earnings hub. Shout out to earnings hub. Those guys are awesome.
Broadcom reports earnings today. I am not covering it though. Hold on a second. Yeah. So we have,
ooh, okay. So Broadcom is reporting earnings today, which is pretty cool. So is RJTI, Regetti, quantum computing. Quantum quantum computing is like i i mean there's obviously a
belief to it that i just don't see when it comes to quantum computing um it's it's very difficult
for me to be bullish quantum computing to be completely honest uh because we've heard we've
heard arguments from both sides um but i mean if i were to bet on quantum computing it would just
be io and q it wouldn't be like righetti or any of these like other crazy, crazy, crazy quantum computing
names.
But I mean, who knows guys, who knows?
A.E.O.
Oh, wow.
Sydney Sweeney's reporting today.
That's an interesting one.
Weeble's reporting today.
Okta, cybersecurity companies reporting today.
Competitor of CyberArk.
Viva Systems reporting today.
That's healthcare software, basically.
I mean, to be honest, a lot of these software companies are reporting today. It looks like the market is back when it
comes to some of this stuff. So I wouldn't be surprised if those gap up tomorrow after the
earnings. And what is this one right here? Microvision? Never heard of that one. That's
an interesting one. I like to look up a lot of these small stuff. Oh, PAGS, Brazilian bankers
reporting earnings today, and a lot of other companies as well.
Like, dude, I haven't like, you know how many stocks are on the stock market?
Like, this is crazy.
I never heard of half of these companies.
And this is why I prefer to buy things that are like more down here than like the things
that are all the way up here, like Broadcom.
I mean, I guess that would have worked a couple of years ago.
I used to own Broadcom and I used to trade it.
But like, I don't, the valuation is, I think the valuation is
fair value as it is right now. Obviously it looked like two or three years into the future
of the valuation might look a little bit more attractive, but it would, you're not really
going to get a double in Broadcom without like the entire stock market going up. So
that might be missing his edge. Jeannie reported this morning, they're down 6%. That's unfortunate.
Yeah. So tomorrow is going to be pretty important.
So is today, obviously.
Broadcom's reporting today.
Marvell Technologies reporting tomorrow as well.
Costco, IoT, or Samsara, Gap, and a bunch of other stuff.
Petrovas, Guidewire, and a few other companies are reporting tomorrow.
So I'm not going to be doing those live, but I'm sure Ahmed as well.
So feel free to check his channel on. reporting tomorrow. So I'm not going to be doing those live, but I'm sure Ahmed as well. So,
you know, feel free to check his channel on. I'm sure he's going to be doing it live or Broadcom as he does every single day. Any new thoughts on the rubric cybersecurity? I have to crowd check
earnings. Yeah. I mean, I have to kind of check, but you know, this is being pulled down with
software as a whole. So this really is not much I can say about this. I've already talked about
the theme many times. Which Mac 7 do you own? I own Amazon. I own Meta. I think that say about this. I've already talked about the theme many times. Which MAG7 do you
own? I own Amazon. I own Meta. I think that's about it as far as my MAG7 stocks. You're not
really going to get a double or triple on these MAG7 stocks. So I prefer to look for mid-cap
stuff. And that's where most of my alpha has been this year and last year or toward the end last year as it's like the mid cap scene. All right. So, um, if you guys are on here, if you're on YouTube, go ahead and check
out the Wolf Financial channel. Uh, it is youtube.com forward slash at Wolf underscore
financial with those tons of videos, tons of content, tons of interviews, and a lot of great
stuff. Of course you could find the repository of my videos on the Wolf Financial channel or my channel as well uh but if you're on twitter let's definitely show
some love off the other platforms and if you haven't liked and subscribed the video go ahead
and do that i do stream four days a week at least tomorrow i have a very experienced trader who
shows up on cnpc a lot uh she is going to be a guest tomorrow and friday i do have an additional guest who's a
retail trader very much into aligned with my methodology of trading stocks and investing
um so i'm very excited to have both of those people on for the next couple days so i will
be streaming live for the next couple days so that's uh definitely some good news for you guys
right here all right so the next part of the segment we are going to discuss kraken robotics so kraken had some news that it's
delivered yesterday so let me share this screen over here i know a lot of you guys are big fans
of kraken robotics to be completely honest it's not a name that i'm particularly interested in
buying right now but it is interesting to see the theme of this company actually coming to fruition.
All right, so Kraken Robotics announced
signing of a strategic acquisition
to expand global maritime capabilities.
$615 million acquisition of Covella Group
will be partially financed through $350 million
public offering of subscriptions, receipts.
So half cash, half financing, right?
So I believe that that is the going thing for this one actually. Yeah. Okay. So $135 million
in common shares, 480 million will be paid in cash. And then the rest is going to be financed,
of course, which is going to be part of the 480 million and what this actually brings is um
combined revenue after due to the acquisition it's gonna be 365 million dollars in 2025 and
combined adjusted ebda of 24 acquiring a high growth of 24 kager since 2023 so what we do know
with this is that uh kraken robotics does focus more on maritime uh defense or specifically uh
warfare um they do have contracts with androl in fact they're one of the major suppliers of androl
i know a lot of you people are bullish on it and to be honest you probably know a lot more than i
do but i think the thing that really stands out with this is a thematic approach not only in
defense but also the capability of using underwater warfare
in the Iran war. So I wanted to play this clip that is from the Secretary Pete Haggitz,
the U.S. Secretary of Defense, and he discusses recent development that we've had,
actually somewhat of a victory that we've had as far as underwater warfare.
of a victory that we've had as far as underwater warfare.
Yesterday in the Indian Ocean, and we'll play it on the screen there, an American submarine
sunk an Iranian warship that thought it was safe in international waters.
Instead, it was sunk by a torpedo. Quiet death. The first sinking of an enemy ship by a torpedo since World War II. Like in that
war, back when we were still the War Department, we are fighting to win. Also,
yesterday, the leader of the unit who attempted to assassinate President Trump
has been hunted down and killed. Iran tried to kill President Trump and President Trump got the last laugh.
Now, this is not a mission accomplished situation. This is simply a reality check.
The combination of U.S. and Israeli intelligence and combat power will control Iran and will control it soon.
All right.
So we obviously have a lot of development as far as government budget investing toward
defensive companies, Lockheed Martin, Raytheon, and Royal Palantir.
Of course, Anthropic was used in terms of warfare.
And also, we don't know if there's any direct investment in it.
But if Kraken does continue to show bullish moves in terms of how much they are putting
toward the defensive budget, and we find that underwater warfare, like you said, the first
time we've seen a torpedo sink down a ship in underwater warfare in a long time, in decades,
could be something interesting to look at.
For me personally, I am not particularly interested in investing in, oh, he's not live today?
All right. I'll check that out. We'll see.
I was just reading something quick. Market closed is closed.
Nice one.
So I need to, I lost my train of thought for a minute there. Damn, if he's not doing it,
maybe I should do it. Bring the stuff to you guys. We'll see. I'll send him a message, see if he's doing it. If not, maybe I will be streaming the Broadcom earnings. We will see.
But anyways, guys, if Kraken Robotics is part of this bull case with underwater warfare,
which I know StockDuck's been looking into a company for underwater warfare,
I don't think he would be particularly interested in this one.
I mean, we'd have to check with him on it, but this could be a possible play um i'm more of someone that picks a shovels person so like who are their
suppliers uh as far as crack robotics you know let's actually take a look at this tweet from
michael seakin who uh is part of the wolf crew and he actually he's very much into cracking robotics
oh my screen messed up all right right. So he says over here,
and I'll share the post with you guys on the stream. There you go. Yeah. So that's Michael
Seekin. Go ahead and give him a follow of your bullish Kraken Robotics. I mean, it's definitely
something you want to deep dive into okay so maybe i will do the
stream tonight i need to take a little bit of a break before i do so i'll probably end this one
early and then uh do that stream in a little bit uh if anything but um what we have here is a lot
more information that uh really comes from the release but he also he also has his thoughts about it uh covella's
sonar dine subsidiary also powers androles subsea drones and seabed century increasing
kraken's supply lock-in revenue from potential anthril all right actually
you know let's take a look at a kraken chart
let me replace the screen over here
I was actually surprised that it was red this morning uh considering um how bullish this news
was right like wouldn't wouldn't it be green if it was so bullish but sometimes the market
doesn't keep up with it that This is a pretty bullish chart.
Wow.
Even bounced off the 50 EMA on there.
That's a lot of volume too.
Daily.
Coming up pretty big volume in the weekly.
Oh, wow.
Pretty decent chart.
Yeah, boy. Might have to take a look at this one now
i can't look how long this company's been public for it for the last like this is like a multi-year
breakout this is insane right and then how they're a two billion dollar company so then they're gonna
have 600 that means they're trading at a price to sales forward about like one, three times.
That's not bad.
Your boy might have to take a look at this one.
Your boy might have to check this out.
We will check this out.
I will bring that news to you later on.
I actually want to have Michael Seacan on here.
I reached out to him to see if he's available today, very last minute.
But, you know, hopefully he's um at some point in the future and then uh we can uh we can attack this uh this kraken robotics bowl case i mean i
think there was actually someone at omit's meetup event who talked to me about kraken he was like
uber bullsh it uh i apologize i forgot your name but the dude had like a beard he was like uber
bullish kraken and he was buying like a low digit. So like he's probably very happy today.
We'll check this out.
Sam will check this out.
Yeah, man, put it on your watch list.
I'm going to put it on my watch list too.
That's going to be on my watch list.
All right, guys.
So that about does it for today.
I haven't decided if I'm going to stream today, but if you're on my Twitter, you'll find out if I'm streaming today.
Of course, go ahead and like, subscribe to the channel,
the Wolf channel as well. Show some love over to the Wolf guys. Those guys are bringing all great and new things. The stocks on space is going right now, but I will check to see if I
have availability to do the market close stay. Anyway, guys, thank you very much for coming.
Really appreciate you and take care.
