00:06:39 · Jordi Hays, John Coogan
[00:06:39] S0: Well, of course, I think voters care more about vibes than anything else. [00:06:44] S1: Yeah. True. And the vibes are down. Nasdaq is down something like 3% today. Let's see. 3.34%, but the Dow is also down 1.13%. There... A a lot of it has to do with earnings. We talked about it yesterday, but Google search struggles reignite AI anxiety. They suffered the worst day on record Thursday as investors confronted the reality that a company that has long been a dynamo of growth and profits faces painful trade offs in the artificial intelligence transition. A headline that could have been written three years ago but is now being digested in reality in a data backed way. Because the first three years, everything's continued to look like business is normal. And that's the nature of these these technology trends. It takes a while for it to actually show up in earnings. There's a lot of there's a lot of inertia in every business in the economy even if you're high growing tech high high growth tech company. The slide erased... [00:07:46] S0: Still got a bit painful. Obviously, Berkshire Yeah. Recently [00:07:50] S1: Backed up the truck. [00:07:51] S0: Backed up the truck. [00:07:52] S1: Yeah. [00:07:53] S0: For Alphabet but for good reason. There's a lot of ways that they can be an AI winner. Yeah. They sell great chips. They have, you know, an incredible cloud business. [00:08:03] S1: That's also They
00:08:03 · John Coogan, Jordi Hays
[00:08:03] S1: That's also They [00:08:06] S0: have a frontier ish lab. Yeah. But... Yeah. It'd be interesting to know what what the business would be trading at if they had revenue ramp from their own model. [00:08:19] S1: Sure. Sure. Right. Yeah. Yeah. Yeah. So yeah. On the front page of the of the journal, you got Google search struggles reignite AI anxiety. They're losing 500,000,000,000 and and you know, their earnings analysis is here. But on the back of the business section, business and finance section, have Alphabet can still win in an AI pullback, more of a bull case, saying it's the closest thing in tech to a one stop AI shop with a frontier model, a fast growing cloud computing business, a major in house chip effort, and large core advertising businesses. They are diversified across the AI stack, and so that could be a cause for optimism even among some jitters in the market. [00:09:01] S0: Well Yeah. We got to talk about Binance. [00:09:03] S1: Okay. [00:09:04] S0: They had a rough one yesterday in the journal, how Binance is racing to cover losses in the biggest heist in crypto history. We will weather this storm, the company says, as it taps reserve funds and its founder gets into a confrontation on x with Elon. Binance executives are racing to cover billions in losses from the biggest crypto heist in history. A breach that blew past everything the exchange had set aside to cover such an incident. So they've had a fund set up that had roughly a billion [00:09:35] S1: Is that the fund? [00:09:36] S0: Yeah. Safu.
00:09:36 · Jordi Hays, John Coogan
[00:09:36] S0: Yeah. Safu. [00:09:37] S1: Secure asset fund for users. Yeah. They set it up for exactly [00:09:42] S0: They were sort of planning for a worst case scenario. Turns out the worst case scenario [00:09:45] S1: Was three or six times what Yeah. [00:09:48] S0: Much they were planning for. Greater. The hackers plundered 6,300,000,000 from the exchanges digital wallets by breaking into a Binance engineer's laptop among other breaches, Binance said. So yeah, I think a big question that everyone has is like, yeah, how how does it how is it possible that like... [00:10:05] S1: A single engineer needs to be... [00:10:06] S0: Single point [00:10:07] S1: of failure. You would think it would be a number of you would think it would be a number of of engineers that need to all sign off on something like this for that much money to move. You know, sending a wire these days from a traditional bank is usually a couple phone calls, two factor, there's a bunch of different stuff that needs to happen. It's rarely just one person signing off. But... [00:10:27] S0: Anyways, stablecoin issuers, Tether and Circle, along with other crypto firms managed to freeze about 3,000,000,000 of that sum leaving roughly 3,300,000,000 under the hacker's control. Finance has had has an... There's some questions around that too. Possible that they were able to take a loan out against those assets and so the assets are frozen now, but they already got some more liquid [00:10:50] S1: Oh interesting. Frozen assets. Okay. Yeah. [00:10:51] S0: So still Easy. Happening in real time.
00:10:51 · Jordi Hays, John Coogan
[00:10:51] S0: So still Easy. Happening in real time. [00:10:54] S1: Was was live tweeting about it saying that, you know, he has some SpaceX stock that he can sell off. There's assets around. [00:10:59] S0: Well, he was saying that because Elon was not not being the most friendly Kind of. [00:11:06] S1: You know what mean? Elon was calling it like it is. It's a really bad hack. Yeah. [00:11:10] S0: But the hack attributed by cyber security researchers to North Korea's TraderTraitor hacking group has rattled the overall crypto market knocking down Bitcoin's price. This means the emergency fund is already a 100,000,000 lower. You would think... You would almost think they would keep the emergency fund in good old fashioned [00:11:29] S1: USD? [00:11:30] S0: USD or Yeah. More diversified basket of assets because it is kind of predictable that like Yeah. [00:11:34] S1: You'd go after that. [00:11:36] S0: There's a massive hack, crypto will trade down. You don't also want your... [00:11:40] S1: Yeah. But if but if the market goes way up and then you get hacked, you haven't actually appreciated. So, yeah, it's a trade off. Interesting. So if 3,000,000,000 does make it to North Korea, that's like 5% of... Or almost 10% of their GDP. Their GDP in 2025 for all of North Korea was 26,600,000,000. So that's like pretty material to the country, which crazy to think about. High stakes in the in the modern cyber security era era. Tyler, did you see anything else... Any other interesting details about what happened with this hack, like technically or any other color that you wanna add?
00:11:40 · John Coogan, Tyler
[00:11:40] S1: Yeah. But if but if the market goes way up and then you get hacked, you haven't actually appreciated. So, yeah, it's a trade off. Interesting. So if 3,000,000,000 does make it to North Korea, that's like 5% of... Or almost 10% of their GDP. Their GDP in 2025 for all of North Korea was 26,600,000,000. So that's like pretty material to the country, which crazy to think about. High stakes in the in the modern cyber security era era. Tyler, did you see anything else... Any other interesting details about what happened with this hack, like technically or any other color that you wanna add? [00:12:19] S2: I I haven't seen anything specifically about like how it actually happened but I I do think it was interesting that like Bitcoin only went down like a few percent. Yeah. So in 2014 when Mt. Gox got hacked, I think in like the two weeks after Bitcoin price went down like, I think it was like 25, 27%. Yeah. Kinda surprising that it's it's really like, you know, yeah, it's like, you know, almost 4%. [00:12:41] S1: Yeah. It's only 4% of the past five days. That's like Surprising... That's better than SpaceX, better than Yeah. You know, Google for example. It's... Yeah. It's... That is interesting that there's so many people that are still holding. It kind of shows you that the median the median holder at this point is maybe more along self custody, maybe more along, know, less less worried about the the... What's going on with the centralized exchanges. What you got for me, Warren?
00:12:41 · John Coogan, Jordi Hays, Tyler
[00:12:41] S1: Yeah. It's only 4% of the past five days. That's like Surprising... That's better than SpaceX, better than Yeah. You know, Google for example. It's... Yeah. It's... That is interesting that there's so many people that are still holding. It kind of shows you that the median the median holder at this point is maybe more along self custody, maybe more along, know, less less worried about the the... What's going on with the centralized exchanges. What you got for me, Warren? [00:13:11] S0: Anyways, let's look at this response. Yeah. So Mert is saying he just wants one boring day. Yeah. All he's asking for. CZ said, Elon, I have a lot of respect for you but bad time to be a troll. He was commenting emojis back. Please stop. Our SpaceX shares are worth more than 1,000,000,000. Would appreciate if you show a little support. Thanks. I think that's a fair fair stance. [00:13:38] S1: Wait. Wait. Which one? I think the Elon reaction's a fair stance... He's not doing crying laughing. He's not doing... He's doing the... This is really rough. He's doing the... [00:13:47] S0: Yeah. [00:13:47] S1: I don't know. It didn't... This doesn't seem like him like totally grape dancing in [00:13:53] S0: this Yeah. [00:13:53] S1: Yeah. In this in this way. [00:13:55] S0: And then someone over at Binance says reporting to the major shareholder. Of course, talking about CZ. Our company's revenue for the year is sufficient to cover the losses. So we don't need to sell the SpaceX shares you are bullish on. [00:14:05] S2: So I