Enrique Abeyta:

The AI Bubble Fears Are Getting Worse. Wall Street Doesn’t Want To Talk About It

OpenAI CEO Sam Altman's recent warning about an AI bubble joins a growing chorus of voices — from MIT researchers finding 95% of AI projects unprofitable to Apollo economists comparing today's valuations to the dot-com era. Yet as these concerns mount and stocks like Nvidia slip despite record earnings, much of Wall Street continues its elaborate linguistic dance around the one word that could make sense of it all: bubble.

The reluctance to name what's happening isn't just semantic squeamishness: There's too much riding on the AI buildout for anyone to want to spook the market. AI infrastructure spending has contributed more to U.S. economic growth in recent quarters than consumer spending, effectively becoming a private-sector stimulus program. The Magnificent 7 tech companies alone spent a record $102.5 billion on capital expenditures in their most recent quarters, almost all of it flowing to data centers and AI infrastructure.

It's an echo of the late 1990s, when massive spending on fiber optic cables and telecom infrastructure drove economic growth even as dot-com valuations soared beyond reason.

Until AI proves itself over time, Wall Street's linguistic dance around the B-word may be the most rational response — acknowledging both the promise and the peril without committing to either narrative.

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James Altucher:

Nasdaq Asks SEC for Rule Change To Trade Tokenized Stocks

Nasdaq, the world’s second-largest stock exchange by market capitalization, filed a request Monday with the U.S. Securities and Exchange Commission (SEC) asking for a rule change that would allow the company to list tokenized stocks.

The exchange operator specifically asked to amend certain rules, including the definition of a security, to trade tokenized stocks under the same execution and documentation rules as traditional securities, provided the tokenized versions are deemed equivalent.

Nasdaq’s request with the SEC would go beyond a technical rule change as it relates to the foundations of how stocks are issued and settled.

If approved, U.S.-regulated exchanges, including Nasdaq, would be authorized to list tokenized shares on their platforms, which could boost liquidity for blockchain-based versions of traditional securities.

Nasdaq’s proposal came amid a growing trend for real-world assets (RWAs) globally, with many platforms choosing to list tokenized versions of U.S. investment products like Tesla shares or exchange-traded funds (ETFs) for users in jurisdictions like Europe.

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Davis Wilson:

New Way to (Easily) Own SpaceX

Meet EchoStar (SATS): the most exciting stock in the market. In a $17 billion deal announced this morning, the telecommunications company sold key spectrum licenses to SpaceX and walked away with $8.5 billion in cash and up to $8.5 billion in SpaceX equity.

That instantly makes EchoStar the newest – and arguably the best – way for investors to get exposure to SpaceX stock without waiting for an IPO.

With EchoStar’s market cap sitting around $22 billion, nearly 40% of its value could soon be tied directly to Elon Musk’s rocket company. That’s not something investors can ignore.

And if SpaceX continues to grow into the trillion-dollar behemoth I expect, EchoStar shareholders will be holding one of the most valuable tickets in the public markets.

For investors looking to own a piece of Elon’s space empire, SATS is the best public-market play yet.

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