SMX Is Suddenly Turning Heads as Energy Volatility, Recycling Economics, and Digital Verification Collide Across Global Markets!
With energy shocks and regulatory pressure reshaping global markets, SMX (Security Matters) Public Limited is emerging as a company investors may want to watch closely.
As the global economy becomes more compliance-driven and supply chains face growing pressure from inflation, geopolitical instability, and sustainability mandates, companies everywhere are searching for systems capable of delivering trusted verification at the material level.
SMX is working to solve that problem by embedding invisible molecular markers directly into materials, allowing products and commodities to carry secure digital identities throughout their lifecycle.
SMX’s technology has applications across plastics, recycling, industrial manufacturing, energy-linked commodities, and circular supply chains where traceability, authenticity, and compliance are becoming increasingly valuable.
In a world where trust and verification are becoming critical, SMX could play an important role in helping authenticate valuable materials like gold across global supply chains. With the launch of its Digital Material Passport Platform, SMX is expanding its push into what many believe could become the next generation of proof-based industrial infrastructure.
As governments tighten transparency rules and recycled materials become more economically competitive, SMX is positioning itself in the middle of several major global trends at once!
AMD’s Poker Face: Reading the Tell in a Panic-Driven Market
Reported by Jeffrey Neal Johnson. Article Posted: 4/29/2026.
Key Points
AMD’s partnership with a major hyperscaler validates its technology and de-risks the company’s future revenue growth expectations.
Management is using a forward-dated product event to anchor market expectations on its next-generation hardware cycle, countering short-term sentiment.
Sophisticated options traders and institutional investors appear to be accumulating shares, positioning for a significant rally into the late summer.
The current selloff, sparked by systemic concerns about the pace of AI infrastructure spending, may be creating an attractive entry point for investors who can separate short-term sentiment from medium-term fundamental catalysts.
While the tape shows a stock gapping down nearly 5%, a deeper analysis reveals a company planting a strategic flag for its next-generation hardware cycle, reinforced by a massive new hyperscaler commitment and smart positioning from the options market.
Calling the Bluff: Why AI CapEx Panic Is Overblown
The immediate downside pressure is a direct reaction to late-April reports of missed internal growth targets at OpenAI, a development that sent a shockwave through the AI supply chain. The narrative has pivoted almost overnight to fears of a slowdown in data center capital expenditures. This sentiment-driven rotation is providing cover for profit-taking after a strong 59% 30-day rally in AMD’s stock price.
Compounding the macro pressure was a tactical downgrade from Northland Securities, which shifted its rating from Outperform to Market Perform, citing valuation concerns. The stock currently trades with a trailing price-to-earnings ratio (P/E) of 126.23, a metric that demands near-flawless execution and sustained high-growth tailwinds. For many investors, the OpenAI news was the first visible crack in the growth thesis, justifying a move to the sidelines. The resulting price action, a sharp decline to the $318 level, reflects this heightened uncertainty as investors await the company’s critical Q1 2026 earnings release on May 5.
AMD’s Pocket Aces: The Meta Partnership Counter-Signal
Just as the market began to price in a potential CapEx winter, new disclosures provided a powerful counter-narrative. A newly expanded strategic partnership with Meta Platforms (NASDAQ: META) will see the hyperscaler deploy 6 gigawatts of AMD GPUs. This multi-gigawatt commitment is a direct and verifiable rebuttal to the thesis that AI infrastructure buildouts are stalling. It provides a foundational layer of demand from a premier customer, de-risking forward revenue streams and validating the performance of AMD’s current and future accelerator architecture.
This stands in stark contrast to competitors like Broadcom (NASDAQ: AVGO), which are aggressively pursuing a custom ASIC strategy that can lead to margin compression and high single-customer concentration risk. The Meta deal underscores the strength of AMD’s more open, flexible hardware ecosystem, a key differentiator for hyperscalers seeking to avoid vendor lock-in and diversify their silicon supply chains.
Betting on the Turn: AMD Signals Its Next Move
AMD management is not waiting for the market narrative to dictate its trajectory. The announcement of its Advancing AI 2026 event, scheduled for July 23, serves as a strategic placeholder for its next hardware cycle. This forward-dated event is a classic maneuver by silicon companies to defend their stock price during sector corrections, signaling confidence in the product pipeline and helping bridge any gaps in sentiment.
The San Francisco showcase is expected to debut the next-generation Instinct MI400 series accelerators. These products are engineered to directly challenge NVIDIA’s (NASDAQ: NVDA)dominance in the data center. Alongside the new GPUs, the market anticipates a roadmap for the Zen 6 architecture and Zen 7 EPYC enterprise server processors, further strengthening the company’s two-pronged assault on the high-margin data center market. By anchoring expectations to a firm date, AMD is forcing analysts and institutional capital to look past the current noise and begin pricing in the next wave of product-driven growth.
Who’s Staying in the Game
Despite the jarring price action, institutional conviction remains robust. AMD is currently 71% institutionally owned, with capital flows over the last 24 months showing a decisive bullish bias, $36.96 billion in inflows versus $20.33 billion in outflows. This suggests that long-term allocators are using periods of volatility to accumulate positions.
Recent insider selling, which can often be a bearish indicator, requires deeper context. SEC Form 4 and 144 filings confirm that the widely reported April share sales by CTO Mark Papermaster were executed under a pre-arranged Rule 10b5-1 trading plan. This plan was established in November 2025, long before the recent rally, neutralizing any interpretation of the sales as a reaction to current market conditions.
Going All-In: Options Traders Play Their Hand
The options market is providing a clear map of investor strategy. Significant open interest in put options at the $300 and $310 strike prices for near-term expirations establishes a firm technical support floor. At the same time, traders are accumulating out-of-the-money call positions, with concentrated open interest at the $340, $350, and $370 strikes.
This bifurcated positioning confirms the broader thesis: sophisticated traders are using the current volatility to buy downside protection while simultaneously placing directional bets on a rally into the late-summer hardware event. The flow indicates that the market is beginning to front-run the hype cycle for the Advancing AI 2026 event, creating a steady baseline of support that should cushion the stock against further macro-induced panic. The current technical divergence offers an asymmetric risk/reward opportunity to scale into a high-beta technology leader ahead of its most significant catalysts of the year.
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This week, three of the most powerful capital allocators on Earth agreed on something.
Silver Lake Partners. The Saudi sovereign wealth fund. Jared Kushner’s Affinity Partners. Together they are paying $55 billion to take Electronic Arts private. The largest video game buyout in history.
The financial press called it a “gaming bet.” They missed the point entirely. This is not a bet on video games. It is a bet on 700 million registered users who pay every month, year after year, whether or not a new title ships. That is not a gaming company. That is a toll road with a joystick.
That is the B quadrant at full scale. And this week, the private markets are full of moves just like it. Here is what you need to know.
In today’s issue:
• Why Silver Lake paid $55 billion for a gaming company — and why games have nothing to do with it [The Deal Floor]
• The $660 million move Charles Schwab just made that quietly opened a door most retail investors do not know exists [The Crowdfunding Pulse]
• Blue Owl just cut its dividend. Here is what that tells you about private credit right now [The Private Credit Desk]
Silver Lake. The Saudi Public Investment Fund. Affinity Partners.
Three very different institutions agreed on one thing: Electronic Arts at $55 billion is worth more as a private company than a public one.
The deal closes June 30. EA has already begun its NASDAQ delisting. When it does, 700 million registered users, $7 billion in annual revenue, and some of the most valuable gaming intellectual property in the world disappears from public markets.
The mainstream read: a bold bet on gaming.
The real read: a bet on subscription cash flow. EA’s live-service model collects money every month. FIFA Ultimate Team alone generates over $1 billion per year. The games are the marketing. The subscriptions are the asset.
Banks sold $5.75 billion in syndicated loans to fund the deal. Private credit funds? Several reduced their orders or pulled out entirely. The smart money is buying the company. The lending market is getting cautious.
That is the B quadrant at scale. You do not buy the product. You buy the toll road.
Robert’s take: When the best capital allocators on Earth pay $55 billion for a business, they are not betting on hit games. They are buying recurring cash flow that does not depend on whether the next title ships. That is what assets do. They pay you whether you work or not.
THE CROWDFUNDING PULSE
Reg CF, Reg A+, platform intelligence
In March, Charles Schwab completed something that most investors completely missed.
The company paid $660 million for Forge Global Holdings: the leading marketplace for pre-IPO shares. Schwab now has the ability to offer pre-IPO access to 35 million individual accounts.
Most of those account holders have no idea that door just opened.
On the Reg CF side, the market contracted in Q1 2026. New offerings dropped 42 percent, from 286 deals to 165. Total capital raised fell 29 percent, to $72.4 million.
That is not a crisis. That is consolidation. Average deal sizes went up. Average investor commitments went up. Fewer deals, higher quality.
Wefunder leads weekly platform volume at $1.9 million per week. StartEngine saw Etherdyne Technologies oversubscribe its Reg CF raise in the final week, pulling in $1.2 million from 400 investors. The crowdfunding market is getting more selective. That is healthy.
The takeaway: The Schwab-Forge deal is the structural headline. The access gap between institutional and retail investors just got smaller. That matters more than one quarter of Reg CF volume data.
THE PRIVATE CREDIT DESK
BDCs, direct lending, credit markets
Blue Owl Capital Corporation just told you something important.
Its quarterly dividend was cut from $0.37 to $0.31. Net asset value fell $0.40 per share in a single quarter. Total investment income dropped $68 million year over year. The stock fell 6.2 percent after-hours.
That is what happens when you are a lender to private equity-backed software companies while (a) rates are falling, (b) AI is disrupting your borrowers’ valuations, and (c) a $20 billion maturity wall is coming in 2028.
Meanwhile, Ares Capital held its dividend at $0.48 per quarter. Core EPS came in at $0.47. Non-accruals ticked up modestly to 2.1 percent of portfolio cost. Available liquidity: $6 billion.
The structural story: banks are now competing directly with private credit funds. Bank of America committed $25 billion of its own balance sheet to direct lending deals. That is not a partnership. That is competition. The 200-basis-point cost gap between direct lending and syndicated loans is pushing borrowers back toward banks.
BDC investors: Know what you own. Not all private credit is the same. OBDC lends to smaller, riskier borrowers. ARCC has conservative underwriting and a $29.5 billion portfolio. The divergence in Q1 earnings tells you where the stress is concentrated.
SPONSORED: BROWNSTONE RESEARCH
SpaceX IPO Confirmed: Claim Your Stake Today
Elon Musk is about to take SpaceX public in what’s set to be the biggest IPO ever.
SpaceX filed its confidential S-1 with the SEC on April 1.
The target: a June 2026 public debut. The implied valuation: $1.75 trillion. The raise: potentially $75 billion. That would be the largest IPO in stock market history. Not the largest tech IPO. The largest of any kind. Ever.
Twenty-one banks are lined up under the project code name “Project Apex.” JPMorgan. Goldman Sachs. Morgan Stanley. The machinery is in motion.
On the Forge Global secondary market, SpaceX shares are already pricing at $598.59 per share, implying a $1.42 trillion valuation. That is the crowd’s estimate before the roadshow. The public will see $1.75 trillion on the cover page of the prospectus.
Behind SpaceX: OpenAI is pricing at $840 billion implied. Anthropic at $380 billion. The three largest private AI companies in the world are all watching SpaceX’s debut before deciding their own timing.
The macro calendar matters here. CPI prints Tuesday. Iran remains a wildcard. Any bad print could shift the June timeline. The window is open. The question is how long it stays open.
The KPP angle: The Schwab-Forge acquisition means that for the first time, Schwab’s 35 million individual investors can access SpaceX secondary shares before the IPO. That access did not exist six months ago. The definition of “private market” just shifted.
THE CASHFLOW QUADRANT APPLIED
Real-world quadrant intelligence
Last week, Senator John Fetterman bought Micron Technology stock while sitting on the Senate Commerce Committee. His committee oversees the CHIPS Act that awarded Micron $6.165 billion in federal grants.
Representative Maria Salazar bought Boeing, GE Aerospace, and Honeywell while sitting on the House Foreign Affairs Committee. That committee receives classified briefings on defense procurement and arms sales.
Representative Greg Steube bought IonQ, a quantum computing company, while sitting on the House Intelligence Committee. That committee oversees DARPA programs in quantum technology.
The STOCK Act requires disclosure within 45 days of the trade. The system calls this transparency. A month and a half after the fact is not transparency. It is a 45-day head start.
Here is the quadrant lesson: E-quadrant thinking says use your job to get an edge. B/I-quadrant thinking says own the business or the asset outright. You do not need a committee seat when you own the toll road.
The rules of this game were written by people who play by B/I rules. They disclosed their E-quadrant behavior because the law requires it. They kept the B-quadrant strategy for themselves.
That is the unfair advantage. Now you have it too.
To your unfair advantage, Robert Kiyosaki Editor, Kiyosaki’s Private Playbook
P.S. The Silver Lake partners buying Electronic Arts for $55 billion are not waiting for public markets. The investors who got into SpaceX secondary shares are not waiting either. Forge now prices SpaceX at $1.42 trillion. The public will see $1.75 trillion at IPO. Before that happens, there is a way to get positioned. See your options before the IPO launches.
Given how crazy 2026 has been, I have one request that might sound very strange…
Enjoy the relative peace and stability while you can.
Because two massive forces are colliding right now, and the result is set to upend everything we thought we knew about business. And trade relationships that have held our global economy together for decades are hanging by a thread.
I call what’s coming The Age of Chaos.
And almost no one I talk to is prepared for it. Not yet anyway.
But if you’re in that group, it’s not your fault.
Because here’s what most folks don’t understand:
The Age of Chaosisn’t just another market cycle where you will eventually see the light at the end of the tunnel.
The Age of Chaosis a fundamental reshaping of the economic order. And when the dust settles, we’ll be managing our money in a completely different investment landscape.
The Wealth transfers will be historic.
People who are wealthy today could be penniless when this decade ends. While those who position themselves correctly right now could build massive wealth.
The great restructuring of the stock market is already happening:
Reliable, household names that fund managers have loved for years are getting crushed:
United Healthcare: -49%
While dynamic companies positioned for this new world are exploding higher:
AppLovin: +713%
MicroStrategy: +358%
Palantir: +340%
This isn’t random market volatility. This is the beginning of an irreversible economic division that’s just getting underway.
Names that have seemed untouchable throughout history. Names that every “expert” tells you to buy and hold forever. Names that could rob you of your hard-earned savings if you don’t act soon.
For instance, while everyone’s focused on whether Nvidia’s incredible run is over, I’ve identified a stock most people associate with cookware that’s now become a key supplier to AI data centers everywhere.
And while investors keep piling into Amazon, I’ll reveal a virtually unknown online retailerthat could be like buying Amazon in 2005 — but with an even bigger competitive advantage.
I’m giving away all of this analysis completely free in this broadcast. No membership required. No credit card. Just the unvarnished truth about what I see coming and how to position yourself for it.
The Age of Chaos isn’t something that mighthappen. It’s already underway.
The question is: Will you be among the victims or the victors?
Knowing the names and tickers of these stocks could mean the difference between winning and losing in the months ahead.
Eric Fry Senior Macro-Investment Analyst, InvestorPlace
This ad is sent on behalf of InvestorPlace Media at 1125 N. Charles Street, Baltimore, Maryland 21201. If you’re not interested in this opportunity, please click hereStockguru LLC (dba InvestingDistrict), 2563 cherry hill ln, Hermitage, PA 16148, United StatesYou may unsubscribe or change your contact details at any time.
Can we see this rally past $18 again and hold into the close??
LFG!! *NASDAQ:USAU*
Full report below ⬇️
Billionaires Are Buying USAU—Here’s Why This Tiny U.S. Gold & Copper Powerhouse Could Be the Next Mining Mega-Winner!
A Fully Permitted NASDAQ Microcap May Quietly Becoming the Hottest Critical Minerals Play on Wall Street!
Smart Money Is Rotating OUT of Tech and INTO Dirt (Literally)!
There’s a quiet capital rotation happening right now—and it’s not going into AI hype cycles or overextended tech multiples. It’s flowing into hard assets: gold, copper, and U.S.-based critical minerals.
With geopolitical tension rising, fiat currency trust weakening, and governments scrambling to secure domestic supply chains, investors are re-pricing one thing fast: resource security matters again.
That’s where U.S. Gold Corp. (NASDAQ: USAU) enters the chat—not as a speculative explorer, but as a fully permitted, development-ready U.S. gold-copper producer sitting at the exact intersection of policy tailwinds and commodity supercycles.
This isn’t “hope and drill results.”
This is shovels-ready infrastructure with federal momentum behind it.
USAU — The Fully Permitted Sleeper That Wall Street Is Starting to Notice
Let’s be clear: USAU isn’t your typical junior miner endlessly burning cash on early-stage drilling.
It’s a development-stage gold and copper company with its flagship CK Gold Project in Wyoming already fully permitted and construction-ready.
Translation? No years of waiting. No regulatory roulette. No “maybe someday” pipeline.
The CK Gold Project already carries:
~1.0–1.6 million ounces of gold + 260M lbs copper
~85,000–110,000 ounces annual gold-equivalent production potential
~11-year mine life
Low strip ratio (~0.98:1) and infrastructure-rich location near Cheyenne
Estimated ~$394M initial capex with strong projected economics even under conservative pricing
At higher gold assumptions, projected NPV scenarios scale aggressively—turning what looks like a modest mid-tier project into a cash-flowing machine in waiting.
This is why analysts are throwing out targets like $16.50, $22, and even $27.50 per share!
The Billionaire Signal — Why “Smart Money” Is Quietly Circling USAU
When names like Eric Sprottshow up on the shareholder list, markets tend to pay attention later… and regret not paying attention earlier.
USAU’s investor base includes:
Resource legend Eric Sprott
Franklin Templeton
Mackenzie Investments
Terra Capital Natural Resources Fund
Other institutional and strategic holders across the mining ecosystem
This isn’t retail hype—this is institutional conviction in a domestic critical minerals story with actual execution visibility.
And here’s the key signal: insiders and large capital allocators don’t pile into companies waiting for “potential.” They position for permits, feasibility, and financing pathways already in motion.
USAU checks all three.
CK Gold — The Rare “Build-It-Now” Asset in a Sea of Promises
The CK Gold Project isn’t theoretical anymore—it’s engineered, permitted, and practically waiting for financing to break ground.
Updated metallurgy and processing flowsheet improvements
Road, power, and water access already in place
Wyoming jurisdiction = low sovereign risk, mining-friendly state
Even more interesting: management has flagged additional upside beyond the current mine plan, including:
Resource expansion outside the reserve model
Potential aggregate sales (turning “waste rock” into revenue)
Higher recovery optimization opportunities
Possible future exploration extensions nearby
This isn’t a static mine—it’s a platform asset with multiple monetization layers.
Policy Tailwind — The Trump-Era Critical Minerals Push Changes Everything
One of the biggest underappreciated catalysts here is macro policy.
The U.S. government has been aggressively prioritizing:
Domestic gold and copper production
Reduced reliance on foreign mineral supply chains
Faster permitting pathways via federal dashboards
Strategic critical mineral security frameworks
That matters because USAU is already where most companies want to be—fully permitted and U.S.-based.
In a world where permitting delays can kill a decade of value creation, USAU’s biggest advantage might simply be this:
It’s already cleared the bureaucratic runway.
Why Investors Are Starting to Pay Attention NOW
Here’s the asymmetric setup:
Fully permitted project ✔
Institutional and billionaire ownership ✔
Feasibility study complete ✔
Financing discussions underway ✔
Construction timeline targeting mid-cycle execution ✔
Analysts projecting significant upside range ✔
Meanwhile, the broader backdrop is screaming:
Gold strength in macro uncertainty
Copper demand rising from electrification
Domestic resource security becoming national priority
The Bottom Line
USAU Is No Longer Just a Mining Stock — It’s a Policy-Backed, Permitted, Institutionally-Supported Optionality Play!
U.S. Gold Corp. (NASDAQ: USAU) is transitioning from overlooked microcap to fully permitted, construction-stage critical minerals candidate with multiple catalysts aligned at once: financing, development, and macro policy support.
In a market obsessed with digital illusions, USAU is positioned in something far more tangible: real ounces, real copper, real land, real infrastructure—and real demand from governments and industry.
The story now isn’t whether USAU exists on the radar. It’s how long it may stay underappreciated before the market fully prices in what’s already been built.
Disclaimer
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Sideways Frequency and its beneficial owners and affiliates, including Hugealerts.com and Tradingwire.comown shares in Us Gold Corp (NASDAQ:USAU)
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We’ve heard the drumbeat growing louder and louder by the day…
Every boss, every CEO, every talking head on CNBC is shouting the same thing:
“AI is coming for your job!”
Maybe that’s true for some…
But when it comes to trading, the most recent data proves (once again) that AI-based trading algorithms are nothing more than blueprints for a blown account.
Case in point, a recent Bloomberg article posted by Justina Lee titled “AI Bots Auditioning for Wall Street Trading Are Mostly Losing” concluded the following…
AI isn’t ready to replace your fund manager — and the public experiments testing it are showing why.
Across a series of new trading contests between the world’s leading AI models, the verdict so far is unflattering. Most of the systems lose money.
They trade too much.
They make wildly different decisions when given identical instructions.
And no one yet knows if these shortcomings will fade with more powerful iterations — or if they reveal something fundamental about the gap between large language models and how markets actually work.
The basis for the most recent findings put eight major frontier AI systems — including Anthropic’s Claude, Google’s Gemini, OpenAI’s ChatGPT and Elon Musk’s Grok — up against each other in four separate competitions.
Each was staked with $10,000, and then they were turned loose on US tech stocks for two weeks. The challenge involved trading on a variety of signals, acting defensively, reacting to the competition, and using leverage.
The results were not pretty.
As a whole, the portfolios lost about a third of their capital across all 32 sets. Only six models finished with any sort of profit.
SPONSORED
Trump Drops a Triple Bombshell
According to one ex-Wall Street insider, President Trump is preparing to unleash a stunning, triple-bombshellon Washington.
It’ll send shockwaves across America, the moment it goes live — triggering a $7.5 trillion chain reaction in the markets.
With one little-known corner of stocks erupting by up to 1,000% in 12-24 months.
To me, this is the most public demonstration of what happens when AI systems try to take on some of the most lucrative and skillful work on Wall Street, and why the motto called “human in the loop” remains vital to success when it comes to trading real money.
Now, I admit…
AI is great at doing research, but it’s still ineffective at identifying key variables that move stocks… analyst ratings, chart patterns, insider transactions, sentiment shifts, etc.
And AI still mistimes trades, incorrectly positions sizes, and trades too frequently.
Sometimes, the various AI systems can’t even agree on a market direction.
In the most recent study, Claude mostly wanted to go long, Gemini had no problem being short, and Qwen was comfortable taking risks with big leverage.
Not surprisingly, they all mostly lost money.
Alexander Izydorczyk, former head of data science at Coatue Management and now at NX1 Capital, recently wrote that no AI trading bot he tracks has yet shown a lasting edge.
YOUR ACTION PLAN
My takeaway is simple. Leave the wonders of AI to research (and other data-mining tasks). But leave trading to those who have been fully immersed in it for their entire lives… because guys like Karim and I know more about what moves markets than any AI robot will ever understand.
Maybe that’s a bold statement, but the most recent data continues to support this point. It’s also what makes The War Room one of the strongest trading communities in existence.
If you’re ready to jump into the room with us and crush AI trading models, then click below to “Trade Where Millionaires Trade” Want more content like this?
Nearly 1,000 miles from Wall Street, one small town man’s AI is now finding lucrative trades that have outperformed the market by 1,700% to start the year…
And now he’s revealing his #1 trade for Monday, May 11.
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You’ve seen what happens when a shift like this hits its tipping point.
You know how fast the gains can come — and how quickly you can get left behind.
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Most people who say they want to day trade never actually start.
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P.S. We’ve been getting asked since this morning what the “reveal” is at the end of the video. We’re not spoiling it in an email. But I’ll say this: the people who watched it this morning and acted are going to look really smart by next Monday.
FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT ADVICE. NetPicks Services are offered for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized financial advice. We are not financial advisors and cannot give personalized advice. There is a risk of loss in all trading, and you may lose some or all of your original investment. Results presented are not typical. Please review the full risk disclaimer: https://www.netpicks.com/risk-disclosure This email was sent to pahovis@aol.com by info@netpicks.com
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Shares of tech giant Amazon.com Inc (NASDAQ: AMZN) opened at a fresh all-time high on Thursday, April 30, following the company’s earnings report the previous night. It’s the latest leg in a strong rally that has sent the stock gaining more than 35% since the end of March. For investors who had grown frustrated with the stock’s lack of momentum over the past year, patience appears to have paid off.
As we’ll see below, the question based on the numbers isn’t whether Amazon delivered—it clearly did. Rather, the question is whether it can keep delivering at a level that justifies both the recent move and what now looks like a much higher bar. Let’s jump in and take a closer look.
In terms of how to read the report, some earnings simply beat expectations, while others shift the narrative. This was firmly the latter. Amazon delivered comfortably ahead of expectations on both revenue and earnings, but more importantly, it did so in a way that directly addressed the market’s biggest concerns.
For months, investors had questioned whether, and when, the company’s massive investment in artificial intelligence (AI) would translate into meaningful returns. This quarter provided the clearest indication yet that it already is.
AWS growth accelerated sharply, with year-over-year sales growth of 28%, reinforcing the case for rising demand for cloud and AI infrastructure. That’s important because AWS remains the engine of Amazon’s profitability. Any sign of momentum there has an outsized impact on how the entire business is valued.
AI Is Now Driving the Business, Not Just the Story
However, the most important shift in this report is that AI is no longer just a narrative layer sitting atop Amazon’s business. It’s now clearly embedded within it.
Demand for AI-related services is driving AWS’s growth, and that demand is showing up not just in current revenue but also in backlog and forward visibility. Strategic partnerships and large-scale customer commitments further reinforce the idea that Amazon is becoming a central player in the infrastructure powering the AI economy.
At the same time, the company is beginning to highlight the upside potential of its own custom silicon, particularly its Trainium chips. These are not just cost-saving tools, but potential revenue drivers in their own right, positioning Amazon as both a provider and enabler of AI infrastructure.
For investors, that means the question is no longer whether Amazon can effectively monetize AI, but how large that opportunity can become.
The CapEx Debate Is Evolving
That said, it doesn’t mean the ongoing and valid concerns about spending have disappeared. Amazon must continue to invest heavily to realize its potential, with capital expenditures expected to remain extremely elevated as it builds out the necessary infrastructure. Not long ago, this was seen as a major headwind, with investors worried that returns might take too long to materialize.
While the scale of the spending hasn’t changed, the perception of it has following this report. That’s a meaningful shift, but it is not without risk, especially given the impact on Amazon’s free cash flow. High spending still requires high returns, and the market will be watching closely to ensure this early momentum continues.
The Potential Problem: The Bar Just Got Much Higher
If there is a challenge for Amazon coming out of this report, it’s that expectations have now increased just as much as the stock. A 35% rally in just over a month, combined with a decisive earnings beat, means much of the near-term optimism is likely already reflected in the price.
The thing is, analysts are projecting further gains, with some post-earnings price target updates reaching as high as $325. That creates a different kind of setup. Amazon is no longer a stock that needs to prove itself; it needs to sustain and build on what it has just delivered. That means the bar is higher and there is less room for disappointment. In other words, any signs of slowing growth, weaker demand, or delays in translating AI momentum into broader profitability could quickly shift sentiment.
For investors, that means balancing two realities. On one hand, the long-term opportunity remains compelling, with AI-driven growth, expanding margins, and new revenue streams pointing to further upside. On the other hand, the stock is now trading at levels that suggest much of that success will materialize. Yes, Amazon has proven the bull case for now—the next move depends on whether it can keep proving it.
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And while Apple itself is worth $3 trillion, the real story is the small chip company that has the one critical technology I believe Apple’s biggest launch can’t function without.
A company barely 1/1,000th of Apple’s size.
When Apple goes public with the news, I believe Wall Street will rush in… That’s when the biggest gains vanish.
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