Josh Brown

All right, so Kai Wu, who was on TCAF a couple of weeks ago, Kai, I think, is the only person, him and Sembliss are the only two people right now that when they publish something, I just Insta stop what I'm doing, if I can, and read it.

So he was writing about the disruption in software and AI

and how to think about the range of probabilities and outcomes.

So I want to take a few of his charts.

Let's go to exhibit three.

So he is showing the forward price to earnings ratio for various companies, as well as their max drawdown.

And you know the names, like we all understand very well what's going on here.

Salesforce, Consolation, Atlassian, et cetera, just absolutely kneecapped.

The next chart is showing historical iconic disruptions.

So think about, we all know what Netflix did to Blockbuster, what Amazon did to Radio Shack, what Amazon did to Borders.

And he's showing like the cumulative return, these stocks basically go to zero versus what happens to the disruptors.

Obviously they go on to generate extraordinary wealth.

But what's really face-blowing is you don't,

You see the stock perform, you see the stock react in many cases a lot quicker than the fundamentals deteriorate.

So we've spoken on the show, hey, Adobe, like it keeps, it just keeps hitting all time highs in terms of the earnings per share.

The earnings per share keep going higher, but the market keeps saying, don't believe you, this is a zero.

Like this is, and I'm exaggerating, but like the market is saying, this is not sustainable.

I don't care what your earnings are today because the ultimate goal

Settle point is, that's not a phrase.

The terminal value is a fraction of what it is today.