Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - Goldman’s Shocking Warning + Stock Market News 13 February 2026

Transcript

Felix Prehn - Goldman’s Shocking Warning + Stock Market News 13 February 2026 · Felix Nikolas Prehn's Podcast

• 0:00
  SPEAKER_00: While everyone's panicking about software stocks crashing as AI threatens those very software companies, Goldman Sachs just released a list of the software stocks that they recommend you buy and sell.
• 0:12
  SPEAKER_00: Now, of course, they're not sending this to us, retail leftists.
• 0:16
  SPEAKER_00: No, no, no.
• 0:17
  SPEAKER_00: Just to the institutional clients, because they need it the most, right?
• 0:20
  SPEAKER_00: And I honestly think that's very unfair.
• 0:23
  SPEAKER_00: Do you agree with me on that?
• 0:24
  SPEAKER_00: Put unfair in the in the chat down below.
• 0:27
  SPEAKER_00: I think we all deserve a level playing field of information and data.
• 0:31
  SPEAKER_00: So in this video, I'm going to share with you the full list and the why.
• 0:36
  SPEAKER_00: And look, if you own any tech stocks, right?
• 0:39
  SPEAKER_00: Any software companies, this is important.
• 0:41
  SPEAKER_00: In the last few weeks, we've seen what some are calling SaaS copper lips.
• 0:47
  SPEAKER_00: Nearly a trillion dollars has been wiped from software stocks globally.
• 0:52
  SPEAKER_00: The iShare software ETF is down 22% this year.
• 0:57
  SPEAKER_00: The years just started, right?
• 0:59
  SPEAKER_00: Salesforce, down 27% year to date.
• 1:02
  SPEAKER_00: Into it, down 34%, workday, down 30%.
• 1:05
  SPEAKER_00: This is not a correction.
• 1:06
  SPEAKER_00: This is a bloodbath for software nerds.
• 1:10
  SPEAKER_00: And here's what's causing all that panic: AI, artificial intelligence.
• 1:15
  SPEAKER_00: UBS is calling this, and I quote, an unresolvable existential threat.
• 1:21
  SPEAKER_00: I thought they were talking to banks about bankers, but no, it's about software.
• 1:25
  SPEAKER_00: Unresolvable.
• 1:27
  SPEAKER_00: So when a major bank uses that word, existential, about an industry, if you better believe that Wall Street's paying attention.
• 1:35
  SPEAKER_00: So the feel is simple.
• 1:37
  SPEAKER_00: AI can now do what software companies charge you a lot for.
• 1:41
  SPEAKER_00: Why pay, you know, hundreds of dollars a month for tool when AI agents can do it for almost free?
• 1:48
  SPEAKER_00: Now, here's why this matters to you as a retail investor.
• 1:51
  SPEAKER_00: You're holding software stocks in your portfolio, your 401k, your IRAs.
• 1:55
  SPEAKER_00: It's unavoidable.
• 1:56
  SPEAKER_00: So you could be sitting on a ticking time bomb or the buying opportunity of the decade.
• 2:02
  SPEAKER_00: Because Wall Street, I guess they don't really want you to know this because what Goldman Sachs are saying is that not all software companies are created equal.
• 2:10
  SPEAKER_00: Some will get destroyed by AI, others will actually benefit.
• 2:15
  SPEAKER_00: And Goldman Sachs just made that line in the sand between the winners and the losers.
• 2:23
  SPEAKER_00: Now, we're not going to run through every simple stock in this video because it will be tedious.
• 2:28
  SPEAKER_00: So I'm going to also give you guys a full document that's in the free community.
• 2:34
  SPEAKER_00: I'll put the link down below.
• 2:35
  SPEAKER_00: You can go to the community, you can download it.
• 2:37
  SPEAKER_00: It'll give you the complete list, the complete buy list, the complete sell list, and you know, more information and so on around that.
• 2:44
  SPEAKER_00: Um, the reason I'm not walking you through every single stock here because it would just make this video very, very, very, very long.
• 2:50
  SPEAKER_00: But more important than the list.
• 2:52
  SPEAKER_00: And I know you just want the list now, I get it.
• 2:54
  SPEAKER_00: But more important is the framework for understanding why some of these software companies survive and others will not.
• 3:01
  SPEAKER_00: That's the kind of Wall Street playbook that institution clients pay a lot of money for.
• 3:06
  SPEAKER_00: And I'm gonna give that to you right here, right now, for free, if you stick with me for the next few minutes.
• 3:11
  SPEAKER_00: Now, who am I to be sharing this with you?
• 3:12
  SPEAKER_00: My name is Felix Breen.
• 3:14
  SPEAKER_00: I'm an ex-investment banker.
• 3:15
  SPEAKER_00: And that back there is Winston.
• 3:17
  SPEAKER_00: He's got very good connections in banks, so that's how he gets his pause on all the research.
• 3:22
  SPEAKER_00: I'm also the founder of the GOAT Academy, where my retired Wall Street mentors, the people I look up to, teach regular investors institutional strategies, Wall Street strategies.
• 3:33
  SPEAKER_00: We've taught well over 20,000 students in the last six years, which has been super fun.
• 3:38
  SPEAKER_00: And I'm dedicating my retirement to share this information with you.
• 3:43
  SPEAKER_00: When I see stuff that just pisses me off, well, I'll share it with you.
• 3:48
  SPEAKER_00: So I'm gonna pull back everything that Goldman Sachs shared with their institutional clients.
• 3:55
  SPEAKER_00: First, let's understand what triggered this meltdown.
• 3:59
  SPEAKER_00: Well, the meltdown was caused by Anthropic.
• 4:03
  SPEAKER_00: Anthropic on the 3rd of February dropped a bomb.
• 4:08
  SPEAKER_00: They released something called Claude Cowork with a legal plugin.
• 4:13
  SPEAKER_00: Now, if you don't know Anthropic, they're one of the biggest AI companies in the world, they're backed by Amazon and Google.
• 4:18
  SPEAKER_00: And their AI, it is called Claude, and Claude is basically a direct competitor to Chat GPT.
• 4:24
  SPEAKER_00: It just has more a you know fringe pizzazz to it.
• 4:28
  SPEAKER_00: Um, and what does this legal plugin do?
• 4:30
  SPEAKER_00: Well, nothing much, just um contract review, NDAs, compliance tracking, legal briefing, you know, all the stuff that legal software companies charge thousands of dollars a year for.
• 4:41
  SPEAKER_00: I used to be a lawyer, seriously.
• 4:43
  SPEAKER_00: It's a fairly miserable existence, so I quit.
• 4:46
  SPEAKER_00: But we used to pay a lot of money for software.
• 4:48
  SPEAKER_00: So what happens to all the expensive legal software when Claude does it for almost free?
• 4:53
  SPEAKER_00: Well, Claude basically came out and said, we're extending Claude's capabilities to specialized business functions.
• 5:00
  SPEAKER_00: And what they meant is, we're coming for your lunch, software companies, we're gonna have the whole pie.
• 5:06
  SPEAKER_00: And the company that owns the biggest legal software out there, which is called Westlaw, ask your lawyers whether they know Westlaw, they will.
• 5:15
  SPEAKER_00: Thomson Reuters owns that.
• 5:17
  SPEAKER_00: And it dropped 19% on one day.
• 5:20
  SPEAKER_00: LegalZoom crashed 18%.
• 5:22
  SPEAKER_00: Ticker symbol R E L X, LexusNexis, which is another big software company out there for legal nerds, down 15% and so on.
• 5:31
  SPEAKER_00: Now, the beautiful irony is that these legal software companies spend years telling investors how AI would help their business.
• 5:40
  SPEAKER_00: They were supposed to be the AI beneficiaries.
• 5:43
  SPEAKER_00: It turns out when AI actually shows up, it doesn't, you know, well, it can knock you out the park in not such a nice way.
• 5:51
  SPEAKER_00: But it didn't stop that.
• 5:52
  SPEAKER_00: See, the panic spread further.
• 5:55
  SPEAKER_00: Because if AI can replace legal software, well, what else can it replace?
• 5:59
  SPEAKER_00: And that's when the real selling started.
• 6:02
  SPEAKER_00: First it was SaaS, software as a service companies, then private credit firms got hammered, then insurance brokers, then financial services and brokers, then real estate services, and just yesterday logistics firms came under pressure.
• 6:15
  SPEAKER_00: It's sort of like watching a horror movie where the monster keeps finding new victims.
• 6:20
  SPEAKER_00: It's a little bit like watching a horror movie where the monster keeps finding new victims.
• 6:23
  SPEAKER_00: One reason I don't like horror films.
• 6:25
  SPEAKER_00: Now, every day, investors are now waking up and going, well, who's getting disrupted today by this mad thing?
• 6:31
  SPEAKER_00: What should I actually be owning?
• 6:32
  SPEAKER_00: Now, of course, Wall Street's been telling us for years, buy AI stocks, it's gonna help, right?
• 6:37
  SPEAKER_00: Now, AI actually arrives and um they're running around and screaming and going, um, the sky is falling, right?
• 6:44
  SPEAKER_00: So, while everyone else is panicking, the smart folk at Goldman Sachs did something rather smart.
• 6:49
  SPEAKER_00: They actually sat down and they figured out which software companies are vulnerable and which ones are not.
• 6:55
  SPEAKER_00: And they created a strategy around that to make money out of it, because that's sort of their job.
• 6:59
  SPEAKER_00: Otherwise, they wouldn't be called Goldman, right?
• 7:02
  SPEAKER_00: So I actually put the companies also into we have a we have a fundamental stock scanner where you can put stocks in and you can see things like their gross margins and like the important numbers.
• 7:13
  SPEAKER_00: And I put in the good ones, and I can see that their numbers are significantly better fundamentally than the not so good ones.
• 7:20
  SPEAKER_00: So something you might want to play with.
• 7:22
  SPEAKER_00: It's uh it's in the community.
• 7:23
  SPEAKER_00: It's$27 a month, and you get a ton of tools.
• 7:27
  SPEAKER_00: You get this, you get to analyze stocks, you get to screen for stocks depending on what you're looking for.
• 7:33
  SPEAKER_00: Um, there is a retirement planner in there.
• 7:36
  SPEAKER_00: Literally, you can see projections of what your portfolio will do depending on the numbers you plug in.
• 7:42
  SPEAKER_00: And if you're a metals hound, uh, we also have live precious metals, uh, market insight, like how much is there still left in the Comex?
• 7:51
  SPEAKER_00: Um, how much trading volume is there every day, what are the prices doing?
• 7:55
  SPEAKER_00: And then what I really, really love, you can track your holdings.
• 7:59
  SPEAKER_00: So you can literally scan your seats or invoices or whatever, or your spreadsheet or whatever, and it'll add it in here and it'll then tell you how it's doing.
• 8:08
  SPEAKER_00: It'll tell you what you're holding.
• 8:10
  SPEAKER_00: I just put some random numbers into here, obviously, and how it's doing versus the SP and so on.
• 8:14
  SPEAKER_00: Because it's really hard actually when you have a bunch of gold and silver and you bought it over a long period of time to know what the hell it's actually worth right now, right?
• 8:20
  SPEAKER_00: So um, that's just a little bit of a side thing there.
• 8:22
  SPEAKER_00: But yeah, I was playing around with the comparison tool here to go into the fundamentals and it started to make a lot of sense.
• 8:29
  SPEAKER_00: And that's why I thought, let me share this with you.
• 8:33
  SPEAKER_00: So Goldman Sachs um came up with a true pair straight.
• 8:37
  SPEAKER_00: It's very common, it's a sort of a hedge fund strategy.
• 8:40
  SPEAKER_00: It's what I used to do when I was an investment banker.
• 8:42
  SPEAKER_00: I was a hedge fund strategy for a little while.
• 8:44
  SPEAKER_00: Then we would come up with pairs traits.
• 8:46
  SPEAKER_00: We'd come up with something that we are long, as in we want to buy, and we come up with something that we're short, as in that we want to sell.
• 8:53
  SPEAKER_00: And then you make money on both sides.
• 8:55
  SPEAKER_00: I'm not recommending you do that.
• 8:57
  SPEAKER_00: I'm just saying that's the way the banks do it.
• 9:00
  SPEAKER_00: And the strait is doing very well for them.
• 9:02
  SPEAKER_00: So, what are they looking at?
• 9:04
  SPEAKER_00: The most important thing is to understand how they came up with the basket, how they come up with the winners and the losers.
• 9:09
  SPEAKER_00: So the framework is always the pattern, is what you can take away with yourself, and then you can keep that for your life, and therefore you make better, smarter decisions, whereas the list of stocks will expire, you know, in a few weeks or months or whatever.
• 9:22
  SPEAKER_00: And Goldman says that the winners have one or more of these characteristics.
• 9:27
  SPEAKER_00: They have they need physical execution.
• 9:30
  SPEAKER_00: Or the hell does that mean?
• 9:32
  SPEAKER_00: They say they need something to happen in the real world that AI can't replace yet.
• 9:36
  SPEAKER_00: So you think cloud infrastructure, you need cloud service, you need data centers, right?
• 9:41
  SPEAKER_00: And AI can't magically create physical computing power yet.
• 9:46
  SPEAKER_00: Regulatory protection.
• 9:49
  SPEAKER_00: Some software companies are so embedded in regulatory compliance that switching will be a nightmare.
• 9:55
  SPEAKER_00: Think about banks, healthcare, governments.
• 9:58
  SPEAKER_00: They can't just swap out their systems, it's very difficult to do.
• 10:02
  SPEAKER_00: And the third part is integration.
• 10:05
  SPEAKER_00: When software is deeply integrated into a company's operations, ripping it out would cost more than any AI savings.
• 10:12
  SPEAKER_00: So this is really important.
• 10:13
  SPEAKER_00: I want you to write these down.
• 10:14
  SPEAKER_00: I talked to one of my mentors about this who used to work in banking compliance, and he said, look, the bigger the organization, the less likely they are ever to change the system.
• 10:24
  SPEAKER_00: They hate changing their systems.
• 10:26
  SPEAKER_00: It's like the worst thing ever because regulators could get pissed off, they might lose licenses, they might get fined, they might get sued, something might break, it's just not worth it, right?
• 10:35
  SPEAKER_00: And then they also have those are the main three points here, right?
• 10:39
  SPEAKER_00: One, two, three, then there are sort of two bonus sectors.
• 10:42
  SPEAKER_00: And that's places where there's human accountability that's required.
• 10:46
  SPEAKER_00: Cybersecurity is a good example.
• 10:47
  SPEAKER_00: And then also the direct AI beneficiaries, which means if AI is just better and faster, you need more of that.
• 10:57
  SPEAKER_00: So, say you need more data infrastructure, you need more security, you need more cloud services, the more AI there is out there.
• 11:04
  SPEAKER_00: So these are the companies that benefit.
• 11:07
  SPEAKER_00: Now let's flip it.
• 11:08
  SPEAKER_00: What makes a software company a loser?
• 11:12
  SPEAKER_00: Um, I'm borrowing there from your president with that phrasing.
• 11:16
  SPEAKER_00: Now, the most important mistake I see retail investors make is that you don't sell.
• 11:22
  SPEAKER_00: I don't know why.
• 11:23
  SPEAKER_00: You guys just don't sell.
• 11:25
  SPEAKER_00: And you don't sell your great winners, so stuff that's up, you know, 80% or something, because you think it could go up more and you don't know what to do, so you hold on to it.
• 11:36
  SPEAKER_00: And then often that winner goes back down and now because it's minus 20%, right?
• 11:41
  SPEAKER_00: Has that happened to you before?
• 11:42
  SPEAKER_00: Did it happen to you before?
• 11:43
  SPEAKER_00: Put a put an L in the chat that's confused the algorithm mightily.
• 11:48
  SPEAKER_00: And then your losers, which are things that are already down, say 20%.
• 11:52
  SPEAKER_00: Well, you don't want to sell them because it doesn't feel good.
• 11:55
  SPEAKER_00: You'd be admitting a mistake, it's all that you know complication you got going on there between the ears.
• 11:59
  SPEAKER_00: So people don't sell.
• 12:01
  SPEAKER_00: Now, why do we invest to make a profit?
• 12:06
  SPEAKER_00: Right?
• 12:07
  SPEAKER_00: That's usually the only thing.
• 12:08
  SPEAKER_00: Um, the only reason why we're in it is not for the for the love of pressing buttons, is it?
• 12:12
  SPEAKER_00: It's because we want to make more money.
• 12:13
  SPEAKER_00: Now, the only way you realize profits is by by selling stuff.
• 12:18
  SPEAKER_00: So this is literally a concept when to sell, that there's probably about three rules around that, World Suite rules around that.
• 12:27
  SPEAKER_00: And I'll teach them to you for free, not in this video because it'd be insanely long, but I'm gonna run a live session for you guys on Saturday.
• 12:35
  SPEAKER_00: And you can sign up for that at feedxfriends.org slash training, grab yourself a free seat.
• 12:39
  SPEAKER_00: Now I know it's Valentine's Day and in all that, but you know, um, Darling, um, you know, to to to pay for the dinner, I need to learn, you know.
• 12:47
  SPEAKER_00: There could be a justification.
• 12:49
  SPEAKER_00: Bring her along, that's what I would say.
• 12:51
  SPEAKER_00: Um, which is a bot Marley song.
• 12:53
  SPEAKER_00: Isn't that bring her along?
• 12:54
  SPEAKER_00: Is that a bot Marley song?
• 12:55
  SPEAKER_00: Who's who does sing that?
• 12:56
  SPEAKER_00: If you know who that sang that, let me know in the comments down below as well.
• 12:59
  SPEAKER_00: Um, it could be a romantic evening with uh with Winston and um and one Wall Street selling rules.
• 13:05
  SPEAKER_00: Uh but in all seriousness, I hope you find time for it because it's very important.
• 13:08
  SPEAKER_00: And um, do we do replays?
• 13:10
  SPEAKER_00: No, we don't.
• 13:11
  SPEAKER_00: Why not?
• 13:11
  SPEAKER_00: Because people don't watch them.
• 13:12
  SPEAKER_00: Um maybe you say, oh, I will.
• 13:14
  SPEAKER_00: Statistically, that's very unlikely.
• 13:17
  SPEAKER_00: So let me walk you through a couple of winners after we understand their rules.
• 13:22
  SPEAKER_00: So the real vulnerable companies are those that do workflow automation.
• 13:28
  SPEAKER_00: If your software basically just automates a workflow, and that workflow can be described in words, then AI can probably do it, right?
• 13:36
  SPEAKER_00: Document signing, yeah, I can do it.
• 13:38
  SPEAKER_00: Accounting, AI can do it.
• 13:40
  SPEAKER_00: Project management, it's getting really, really scarily good at that too.
• 13:43
  SPEAKER_00: Outsourcing companies.
• 13:46
  SPEAKER_00: Yeah, you can you can do AI can basically do everything for you in-house, right?
• 13:49
  SPEAKER_00: Why would you pay Accenture millions of dollars when you can just talk to an AI agent and you find out the AI agent is actually smarter than your Accenture partner?
• 13:58
  SPEAKER_00: I have a friend who's an Accenture partner, he's gonna love this.
• 14:01
  SPEAKER_00: Uh so also stock uh software that has very low switching costs.
• 14:07
  SPEAKER_00: If it's easy to move it and it's 10 times cheaper with AI, why the heck wouldn't you do it, right?
• 14:12
  SPEAKER_00: Now, the funny thing is, not so funny for the losers, but it is kind of funny.
• 14:17
  SPEAKER_00: A lot of these companies spend the last few years bragging about the AI features.
• 14:21
  SPEAKER_00: We're adding AI to our platform, which was just sort of like a gimmick because they didn't actually build anything.
• 14:29
  SPEAKER_00: They just connected Chat GPT to it and said, look, there is a chatbot now, you can talk to it, and it'll reply with absolute nonsense, right?
• 14:37
  SPEAKER_00: Um, and a bit of you know, woke political gibber, which is what chat GPT is very good on.
• 14:43
  SPEAKER_00: So make sure you sign up for the live training on Saturday, phoenixfrens.org slash training link is down below, and let's look at some winners.
• 14:50
  SPEAKER_00: And some of these will surprise you, some of these will please you, some of these may shock you.
• 14:55
  SPEAKER_00: So they're 26 stocks literally in their in their winners list.
• 14:59
  SPEAKER_00: So it's a it's a fairly it's a fairly long list, and I'm not trying to hide it from you.
• 15:04
  SPEAKER_00: Where is it?
• 15:05
  SPEAKER_00: Here it is, here's the complete list.
• 15:07
  SPEAKER_00: Um let's run through a couple of them so we understand really the whys, and that'll give you a bit more confidence to to look at the list yourself.
• 15:14
  SPEAKER_00: So we're gonna focus on the big names, because no one's interested in something that you've never heard of.
• 15:20
  SPEAKER_00: And and let's use those to understand why these are the winners, right?
• 15:23
  SPEAKER_00: So I'm not telling you to run out and buy these, no, I'm showing you Goldman's thinking so you can do your own thinking and make deformed decisions.
• 15:31
  SPEAKER_00: Always do your own research, don't be a knitwit.
• 15:33
  SPEAKER_00: That should be the new disclaimer, right?
• 15:35
  SPEAKER_00: Investing carries risks, trading carries risks, you can lose all your money, and you may look like a knitwit.
• 15:40
  SPEAKER_00: So, first up, this should not surprise anybody.
• 15:44
  SPEAKER_00: It's Microsoft.
• 15:45
  SPEAKER_00: Microsoft is like, you know, the gorilla in the room.
• 15:48
  SPEAKER_00: And why does Goldman Sachs love them?
• 15:50
  SPEAKER_00: Possibly because Microsoft pays them quite a little fees, but that's obviously nothing to do with it.
• 15:54
  SPEAKER_00: Azure Cloud Computing is growing at 39% a year.
• 15:58
  SPEAKER_00: They're spending a huge amount of money on AI infrastructure, which AI can't build yet, and they own a huge chunk of OpenAI, which is sort of the backbone of a lot of the gibberish AI out there.
• 16:09
  SPEAKER_00: So every time somebody uses ChatGPT, Microsoft benefits and Bill throws a little party for children.
• 16:16
  SPEAKER_00: I should take that back.
• 16:18
  SPEAKER_00: The man is clearly innocent and an upstanding member of the global society, and he wants nothing more than see you vaccinated for your good.
• 16:28
  SPEAKER_00: Now, essentially, more AI usage means more Azure computing power, more co-pilot subscribers, more enterprise software licenses.
• 16:37
  SPEAKER_00: So Microsoft is doing a really, really good job.
• 16:40
  SPEAKER_00: Another winner that may not surprise you is Google.
• 16:46
  SPEAKER_00: Do you know evil Google?
• 16:48
  SPEAKER_00: Alphabet.
• 16:49
  SPEAKER_00: And they are both a potential AI victim and an AI winner.
• 16:54
  SPEAKER_00: So why do they win?
• 16:54
  SPEAKER_00: Well, they have Google Cloud, they have Gemini, which is actually very good.
• 16:58
  SPEAKER_00: I recommend it.
• 16:59
  SPEAKER_00: Um, Gemini Pro, very good.
• 17:01
  SPEAKER_00: YouTube, we're on, it's basically irreplaceable.
• 17:05
  SPEAKER_00: Why?
• 17:05
  SPEAKER_00: Because Winston's on it.
• 17:06
  SPEAKER_00: I mean, you know, no, because AI can't create the content library, right?
• 17:11
  SPEAKER_00: And search, well, despite all the AI hype, people still Google things, right?
• 17:16
  SPEAKER_00: I'm starting to Gemini things more, but we're still Googling things.
• 17:19
  SPEAKER_00: So Google has multiple modes.
• 17:22
  SPEAKER_00: And even if AI disrupts one part of their business, there are plenty of others.
• 17:26
  SPEAKER_00: Plus, they're building the AI infrastructure themselves, they're building chips and everything else.
• 17:30
  SPEAKER_00: They're also uh a shareholder of, you know.
• 17:34
  SPEAKER_00: Um, I was gonna say uh Valdemort, but I meant I meant OpenAI.
• 17:39
  SPEAKER_00: That's winner number two.
• 17:40
  SPEAKER_00: And I actually bought some Google stock last week, a little too high, obviously, and I'm now kicking myself.
• 17:44
  SPEAKER_00: No, no, I've got exit rules on that, so it's all good.
• 17:46
  SPEAKER_00: I'll teach you these rules on Saturday.
• 17:48
  SPEAKER_00: Uh stock number three is Oracle.
• 17:50
  SPEAKER_00: And that might surprise you because yes, they've been around forever, sort of a dinosaur, but Goldman says it's a buy.
• 17:56
  SPEAKER_00: Why?
• 17:57
  SPEAKER_00: Well, they have a$500 billion revenue backlog on a typer.
• 18:04
  SPEAKER_00: $500 billion.
• 18:06
  SPEAKER_00: They signed a massive AI infrastructure deal with Nvidia, Meta, OpenAI, TikTok, and so on.
• 18:12
  SPEAKER_00: And their cloud infrastructure revenue is up, well, 68% year on year.
• 18:17
  SPEAKER_00: Now, there are some concerns about OpenAI's ability to find enough money to pay for all the stuff.
• 18:23
  SPEAKER_00: That's true, possibly, but they still have deals with Nvidia, Meta, TikTok, and so on.
• 18:28
  SPEAKER_00: So, Oracle, they're actually quite smart.
• 18:31
  SPEAKER_00: So instead of competing with AI, they became, well, the plumbing for AI.
• 18:37
  SPEAKER_00: So every AI company needs computing power, and these guys are happy to provide it for a price.
• 18:45
  SPEAKER_00: So let me run you through a couple of other winners here.
• 18:47
  SPEAKER_00: CrowdStrike, cybersecurity, because more AI means more attack services, right?
• 18:52
  SPEAKER_00: You need more defense.
• 18:54
  SPEAKER_00: This is what happens.
• 18:55
  SPEAKER_00: So AI creates security threats.
• 18:57
  SPEAKER_00: CrowdStrike protects against them.
• 18:58
  SPEAKER_00: Palo Alto, same story.
• 19:00
  SPEAKER_00: Cybersecurity is kind of AI proof because AI creates the demand for it.
• 19:05
  SPEAKER_00: We then have Snowflake, and that slightly surprised me, I must say.
• 19:09
  SPEAKER_00: I thought there might be a little bit of a loser.
• 19:11
  SPEAKER_00: But essentially, more data storage, more processing required.
• 19:15
  SPEAKER_00: I'm a bit flaky on Snowflake, but you know, I'm telling you what Goldman Sachs is saying.
• 19:20
  SPEAKER_00: Palantir, government and defense contracts.
• 19:23
  SPEAKER_00: The regulatory entrenchment here is just unparalleled.
• 19:27
  SPEAKER_00: The Pentagon isn't switching to Chat GPT anytime soon, right?
• 19:32
  SPEAKER_00: Um, you need security clearance and all that stuff.
• 19:35
  SPEAKER_00: Insurance companies, well known Palantia, banks and you know the SEC, the Inland Revenue Servers, all these guys, they're not switching to ChatGPT because they're handling very sensitive information.
• 19:48
  SPEAKER_00: And then there's probably another one I should mention here Cloudflare.
• 19:51
  SPEAKER_00: Cloudflare.
• 19:53
  SPEAKER_00: Why?
• 19:53
  SPEAKER_00: Because you need to connect to the internet if you want.
• 19:56
  SPEAKER_00: So you need these guys.
• 19:57
  SPEAKER_00: So there's a full list literally of 26 of these stocks.
• 19:59
  SPEAKER_00: Uh, it's in the community, it's free.
• 20:01
  SPEAKER_00: Um, you don't need to do anything for that, just go to the link down below, sign up for it, and uh, and grab yourself that.
• 20:08
  SPEAKER_00: Now let's talk about the losers because I think that's actually more important is to get rid of the losers.
• 20:13
  SPEAKER_00: And so they have 41 losing stocks here, right?
• 20:17
  SPEAKER_00: And that they believe, the Goldmans believe, that there's an existential threat against AI.
• 20:22
  SPEAKER_00: So I can focus on the big names, but once you kind of recognize, and then you can run through and look at all the minor ones, see if you own some of those.
• 20:31
  SPEAKER_00: So, what's the the big one?
• 20:33
  SPEAKER_00: The big one is Salesforce.
• 20:35
  SPEAKER_00: If you ever use Salesforce, you will hate it.
• 20:38
  SPEAKER_00: At least in fairness, I used Salesforce probably about 10 years ago, and it was just dreadful.
• 20:42
  SPEAKER_00: I'm sure they've improved it by now, but you know, I hated it.
• 20:45
  SPEAKER_00: So, why is Salesforce?
• 20:47
  SPEAKER_00: They are the CRM software king.
• 20:50
  SPEAKER_00: Stocks 27% down year today, which is just crazy.
• 20:53
  SPEAKER_00: 43% down over the last 12 months.
• 20:55
  SPEAKER_00: Price targets have been cut by people like Piper Sandler and so on.
• 20:59
  SPEAKER_00: So, what's their problem?
• 21:00
  SPEAKER_00: And it's important to understand this because you can apply this to any other software company.
• 21:05
  SPEAKER_00: Salesforce charges you per user.
• 21:08
  SPEAKER_00: Now, if AI can do the work of, say, three salespeople, you need fewer users.
• 21:14
  SPEAKER_00: And it's called seat compression.
• 21:17
  SPEAKER_00: It's not some sort of fancy health service or you know, uh butt enlargement process.
• 21:22
  SPEAKER_00: No, it is uh Salesforce's nightmare.
• 21:26
  SPEAKER_00: Now, Salesforce keeps talking about their AI product, it is called brace yourself, it is called Agent Force.
• 21:34
  SPEAKER_00: I mean, you can't make this shit up, can you?
• 21:37
  SPEAKER_00: Who comes out with that?
• 21:38
  SPEAKER_00: Well, that sounds cool.
• 21:40
  SPEAKER_00: Uh well, look, Agent Force um is a product that replaces human workers, and their business model depends on charging per human worker.
• 21:51
  SPEAKER_00: Can you see the problem?
• 21:53
  SPEAKER_00: They're basically saying diet pills that work so well that people stop needing to buy them.
• 22:00
  SPEAKER_00: Which is why pharma companies never mind.
• 22:02
  SPEAKER_00: We don't no no no I've stopped myself.
• 22:04
  SPEAKER_00: You see what I did there?
• 22:05
  SPEAKER_00: I've saved myself.
• 22:07
  SPEAKER_00: So you might wonder why the drugs work the way they work.
• 22:11
  SPEAKER_00: Intuit.
• 22:12
  SPEAKER_00: Company I loved and cherished.
• 22:14
  SPEAKER_00: Why?
• 22:15
  SPEAKER_00: Because they own QuickBooks.
• 22:17
  SPEAKER_00: Now, if you any of you run a sort of medium-sized business, you use QuickBooks.
• 22:23
  SPEAKER_00: Or if you're running the biggest crypto Ponzi scheme in the world, you're also running QuickBooks, which is funny.
• 22:30
  SPEAKER_00: But yeah, it's not also down.
• 22:31
  SPEAKER_00: 34% year to date.
• 22:33
  SPEAKER_00: Why?
• 22:34
  SPEAKER_00: Well, think about what they do: QuickBooks, TurboTax.
• 22:38
  SPEAKER_00: They take your financial information, for example, and then they fill in tax forms.
• 22:42
  SPEAKER_00: Well, that's exactly what AI is really, really good at.
• 22:45
  SPEAKER_00: So why would you pay a hundred dollars literally just for turbotax when AI can do your taxes for free?
• 22:54
  SPEAKER_00: QuickBooks, same problem.
• 22:55
  SPEAKER_00: It's very basic bookkeeping.
• 22:57
  SPEAKER_00: Now, that is being automated, right?
• 23:00
  SPEAKER_00: So Intuit is trying to add AI features to stay relevant.
• 23:03
  SPEAKER_00: And yes, that may work because if such a large user base, and again, who wants to switch bookkeeping software?
• 23:11
  SPEAKER_00: Sounds like a nightmare.
• 23:12
  SPEAKER_00: But if you're spending a lot of money on this, well, yeah, bookkeeping is getting automated.
• 23:18
  SPEAKER_00: And I'm very happy for it, because that's like the least favorite part of our business ownership is bookkeepers.
• 23:26
  SPEAKER_00: Now we've crashed my little annotation thing here, I think, have we?
• 23:31
  SPEAKER_00: All right, there's another one.
• 23:32
  SPEAKER_00: Workday.
• 23:33
  SPEAKER_00: And I think you can start to see the pattern of this, right?
• 23:36
  SPEAKER_00: What do they do?
• 23:37
  SPEAKER_00: They are an HR software, finance software company.
• 23:41
  SPEAKER_00: I mean, shoot me now, right?
• 23:42
  SPEAKER_00: Down 44% over the last year.
• 23:45
  SPEAKER_00: HR software is just automating workflows that nobody really needed to start with.
• 23:50
  SPEAKER_00: On more boarding, payroll, benefits, administration, really, really boring stuff.
• 23:54
  SPEAKER_00: And this is literally what AI agents are built to handle.
• 23:59
  SPEAKER_00: And guess what?
• 24:00
  SPEAKER_00: The CEO just left.
• 24:01
  SPEAKER_00: It's just really a good sign.
• 24:02
  SPEAKER_00: The founder came back to try and save his bacon, but I uh I don't have high hopes.
• 24:08
  SPEAKER_00: Now, what about the next one here?
• 24:09
  SPEAKER_00: DocuSign.
• 24:11
  SPEAKER_00: This is a company that makes money out of you signing documents.
• 24:15
  SPEAKER_00: And why are they crushed by 52% over the last year?
• 24:18
  SPEAKER_00: Because OpenAI has released Docu GPT as an you can sign with us.
• 24:25
  SPEAKER_00: Because really, I mean, document signing softwares are so insanely expensive for you just going, you know, or just typing in your name.
• 24:35
  SPEAKER_00: Such a basic piece of software, and some people think that's worth billions.
• 24:40
  SPEAKER_00: Well, it's not.
• 24:41
  SPEAKER_00: Let me give you a few more losers.
• 24:44
  SPEAKER_00: Um Accenture.
• 24:46
  SPEAKER_00: Consulting companies generally, I was talking about that last year.
• 24:50
  SPEAKER_00: Outsourcing companies, they're just not needed.
• 24:52
  SPEAKER_00: If you see their reports and you put the same question into AI, you're going to get the same quality of work, if not better.
• 24:59
  SPEAKER_00: Um, Atlassian, which owns Team.
• 25:02
  SPEAKER_00: I used to use that actually for a business I had.
• 25:05
  SPEAKER_00: I can't write now, but you get the idea.
• 25:08
  SPEAKER_00: It is, can we write team?
• 25:10
  SPEAKER_00: Yeah.
• 25:11
  SPEAKER_00: It's uh project management software like Monday.com or you know, one of those.
• 25:15
  SPEAKER_00: And guess what?
• 25:16
  SPEAKER_00: Agents are getting really good at this.
• 25:18
  SPEAKER_00: There is uh HubSpot, marketing automation.
• 25:22
  SPEAKER_00: Well, AI can write emails, it can manage campaigns.
• 25:24
  SPEAKER_00: Why do you need them?
• 25:26
  SPEAKER_00: Monday.com is down 50%.
• 25:28
  SPEAKER_00: Why?
• 25:28
  SPEAKER_00: Because they basically said on their call that they need to pivot to AI native products.
• 25:33
  SPEAKER_00: Well, you're a little late.
• 25:34
  SPEAKER_00: UiPath, well, what does it do?
• 25:37
  SPEAKER_00: They do robotic process automation.
• 25:39
  SPEAKER_00: It's kind of ironic because AI is better at automation than UiPath.
• 25:43
  SPEAKER_00: So you don't need these guys anymore, right?
• 25:45
  SPEAKER_00: As I say, there's a full list of these 41 stocks in the community, so check that out.
• 25:50
  SPEAKER_00: But let's look at the bigger picture for a second, because there is more to this.
• 25:54
  SPEAKER_00: The entire software company industry is being revalued.
• 25:58
  SPEAKER_00: One year ago, software companies were trading at 51 times P price earnings, private profit.
• 26:06
  SPEAKER_00: Right now, that's half.
• 26:08
  SPEAKER_00: 27x.
• 26:09
  SPEAKER_00: And you see, at 51x, it was the most expensive industry out there.
• 26:17
  SPEAKER_00: And that's why I'm selling, saying to you, look, people made a lot of money, it went up, right?
• 26:22
  SPEAKER_00: And then it went down really, really quickly.
• 26:24
  SPEAKER_00: And people should have sold somewhere up there.
• 26:28
  SPEAKER_00: And this happens every single month, every single week to all the industries out there.
• 26:33
  SPEAKER_00: And I call it a very, very simple process, which is follow, if I could spell follow, follow the money.
• 26:44
  SPEAKER_00: Because when Wall Street starts selling something, you can see it in the charts.
• 26:48
  SPEAKER_00: There is a pattern to it.
• 26:49
  SPEAKER_00: And I then aim to follow them.
• 26:52
  SPEAKER_00: Because you see, I'm not arrogant enough yet to think that I pick a stock that is so genius and has a product so clever that I'm gonna go against the billions and the trillions of Wall Street.
• 27:07
  SPEAKER_00: Because even if I find that stock, it won't go up if Wall Street hates it.
• 27:12
  SPEAKER_00: So really all that matters is where is the money flowing and how do we see where it's flowing?
• 27:17
  SPEAKER_00: And that's what we're gonna talk about on Saturday.
• 27:19
  SPEAKER_00: So join me for the live training dialink down below.
• 27:21
  SPEAKER_00: And there are other stocks right now, media stocks, for example, media.
• 27:25
  SPEAKER_00: They're trading at 35x right now.
• 27:28
  SPEAKER_00: That's crazy.
• 27:29
  SPEAKER_00: Car company stocks are trading at 32x.
• 27:34
  SPEAKER_00: I think that's crazy, right?
• 27:35
  SPEAKER_00: So you've got to like look for the pattern.
• 27:38
  SPEAKER_00: But software is still a good industry.
• 27:42
  SPEAKER_00: There are companies there that are growing their revenue faster than most other industries.
• 27:46
  SPEAKER_00: So their problem isn't growth, it's whether the growth is enough to justify the price.
• 27:53
  SPEAKER_00: And Goldman's put out something very interesting.
• 27:56
  SPEAKER_00: They said transportation stocks this year are expected to grow their profits by 192% this year.
• 28:05
  SPEAKER_00: 192%.
• 28:06
  SPEAKER_00: Why?
• 28:07
  SPEAKER_00: Because they're the true winners of AI productivity.
• 28:10
  SPEAKER_00: AI makes logistics more efficient.
• 28:13
  SPEAKER_00: They can optimize routes, reduce empty miles, they can automate scheduling.
• 28:17
  SPEAKER_00: So transportation doesn't get disrupted by AI, it gets like supercharged by it.
• 28:22
  SPEAKER_00: So smart money is looking at benefits from AI adoption.
• 28:26
  SPEAKER_00: And you don't need to be smart for it, you just need to know where to look for the money flows because we can then rely on the other people to do the smart thinking, right?
• 28:34
  SPEAKER_00: All right, so let's let's wrap this up.
• 28:36
  SPEAKER_00: Let me give you a three-step framework of what you can do right here, right now.
• 28:41
  SPEAKER_00: That's another song reference for you, put that in the comments.
• 28:44
  SPEAKER_00: And what I want you to do is look at every software stock you own.
• 28:47
  SPEAKER_00: Now, you own them.
• 28:47
  SPEAKER_00: Use you have ETFs, so you know you own them.
• 28:50
  SPEAKER_00: And then ask yourself: does this company have one of these things?
• 28:56
  SPEAKER_00: Does it have one, a physical part to it, as in, you know, does it own data centers?
• 29:02
  SPEAKER_00: Does it have a regulatory regulatory moat?
• 29:09
  SPEAKER_00: Or is it integrated so deeply into businesses that they can't possibly live without it?
• 29:17
  SPEAKER_00: Then the next thing, ask yourself, what's the business model?
• 29:19
  SPEAKER_00: Do they charge per user, not per outcome?
• 29:24
  SPEAKER_00: Palantir just goes to you and says, we want$5 million because we're gonna make you, you know, 30% more profitable, right?
• 29:31
  SPEAKER_00: And then people are happy to pay them because if for safety 60 million, you pay the software company 30 million, well, it's a pretty freaking good deal, isn't it?
• 29:38
  SPEAKER_00: Most software is an expense.
• 29:40
  SPEAKER_00: Some software is a value app that generates value, makes you money.
• 29:46
  SPEAKER_00: Big, big, big difference, right?
• 29:48
  SPEAKER_00: And then look for companies that benefit from more AI.
• 29:53
  SPEAKER_00: So if there's more AI, is this good for the business?
• 29:57
  SPEAKER_00: Think logistics, right?
• 29:58
  SPEAKER_00: So the safest software pay bets are infrastructure plays, cloud computing, cybersecurity, data management.
• 30:07
  SPEAKER_00: Still some risk there if you think AI is just two gars you're never going to work out.
• 30:11
  SPEAKER_00: That's really for you to decide.
• 30:13
  SPEAKER_00: But there is always an opportunity, right?
• 30:17
  SPEAKER_00: Because some of these beaten-down stocks might be incredible buying opportunities.
• 30:21
  SPEAKER_00: When fear is at maximum, that's often when the best deals appear, and you just have to be selective.
• 30:27
  SPEAKER_00: They just buy the dip on any software stock.
• 30:30
  SPEAKER_00: Use the framework, think about it, and look at which of these companies are going to be survivors and thrivers, and you know, you are going to be victims.
• 30:40
  SPEAKER_00: Understanding that difference could potentially make you a lot of money over the next few years.
• 30:44
  SPEAKER_00: Promise you the full list.
• 30:46
  SPEAKER_00: Go get it.
• 30:47
  SPEAKER_00: And go and join me on Saturday.
• 30:51
  SPEAKER_00: Make it a romantic Saturday evening, and we'll learn together how to sell.
• 30:57
  SPEAKER_00: Well, Winston will teach us all winky.
• 30:59
  SPEAKER_00: I hope you found this valuable.
• 31:00
  SPEAKER_00: If you did, share it with somebody else who might benefit from this.
• 31:04
  SPEAKER_00: And I wish you great success.