Matt Miller

So, Bailey, what do we know about this stock and its incredible borrowing performance?

Yeah, Matt, this is probably the most debated stock on Wall Street, maybe behind Tesla.

And when you look at kind of that debt binge, they have been clearly tapping every avenue or venue that they can.

And they really, according to the company, this is the largest chip backed product in terms of borrowing.

So when you put this into an SPV, you're using, again, to your point, about $8.5 billion of borrowing power.

That is going to go into funding and building out the operations, as you mentioned, backed by that Meta contract.

So this is a company that, if you talk to the bulls, they're being very novel with different ways to fund these build-outs and fund these operations.

If you talk to some of the skeptics, this is just another move to borrow money and use the name of Meta to help back that up.

So I look at, you know, again, the market cap here, it's a $40 billion company, but they have $23 billion in debt on the DDIS page, and I assume that's not including something like this because, as you said, it's an SPV.

Yeah, the structures are interesting, and when you talk to investors, if you're talking to private debt buyers, they love this because, okay, you're actually backing an individual product that is investment-grade, according to Moody's, that is backed by a contract with Meta.

If you talk to equity investors on the public side, to your point,

It's a bit more of a complex picture, and that's why we've seen elevated short interest.

We've seen wild swings with this stock going back to when it went public last year during, call it the tariff issues.

And really, when you look at kind of the under-the-surface performance of this company, it is betting that they are going to dominate the space of acquiring NVIDIA chips, building out those data centers, and helping lease compute to hyperscalers.

It's a bold strategy that so far, again, we're really only in the early innings of that story playing out.

Yeah, I mean, this is a stock that has doubled in the past 12 months, Bailey, and almost all of that came in the first couple of months after Liberation Day.

Since then, the stock has been on a steady decline, so the chart doesn't look as impressive as it sounds.

No, not as impressive as it sounds.

And if you compare its one-year performance to its main publicly traded peer, and that's Nebius, it's actually underperforming the other neocloud rival.

Again, this is a story that from an investing standpoint has so many different parties participating.