Midsummer’s Melt-Up, Robinhood, SpaceX and Palantir Report, Chips Rip, Leopold’s Margin Call

**Michael Batnick** (0:23)
You all right?

**Josh Brown** (0:25)
Yeah. Oh, all right. Here we are. I'm sorry.
I had a YouTube link open, and I was looking at us on both. All right. Hey, guys. It's an all new edition of What Are Your Thoughts. It's 5 p.m. on a Tuesday night. So you know what's about to go down. It's Michael Batnick and myself and all of the biggest topics in the markets that you care about. We're super excited to have everybody who's here for the live chat. Can I give some shout outs, Michael? Go ahead. All right. Brian Grill asks, is that Kurt Russell?
It might be. Masterpiece says, what's up, Pounders? Let's see. Sodaq Jason has the bumblebees up for the Duncan Hive. Yup. Duncan's here. John's here too, by the way, guys.
Let me see. Matt Evans need a game show version of The Compound. How would that work?
What would that be like? I'm open to the idea. What do you think?

**Michael Batnick** (1:26)
I'm great at Wheel of Fortune.

**Josh Brown** (1:28)
Elite. All right. Some shout outs to Nicole is in the chat, guys.
Who else is here? Everyone's here. And you know what? This has been an incredible turnaround between last week and this week. Like, what a difference.

**Michael Batnick** (1:46)
The tape feels a little different, doesn't it?

**Josh Brown** (1:49)
What a difference. Seven days and one gigantic margin call make. So pretty excited for the show tonight.
We do have a sponsor. Michael, who's sponsoring the show?

**Michael Batnick** (2:00)
It's Janus Henderson. At Janus Henderson Investors, we believe working together is the way to work better. I believe that too.
Like combining your portfolio plans and our in-depth strategy, your valued assets and our valuable insights, your mission and our vision, always working in perfect harmony to find the right investment opportunities. Janus Henderson Investors, investing in a brighter future together.

**Josh Brown** (2:22)
All right. Very nice. Nicely done, sir.
I guess let's do the elephant in the room. SpaceX reported its first quarter as a public company about one hour ago and the conference call started 30 minutes ago. Were you tempted to jump into the conference call live or you want to experience it later?

**Michael Batnick** (2:43)
No, I'll do it later.

**Josh Brown** (2:45)
I think I'm going to do it tonight, but not yet. Not until a few hours goes by.

**Michael Batnick** (2:50)
It's playing right the second right here right now. Yeah.

**Josh Brown** (2:53)
So let's get to the expectations very quickly. Let's get to the results very quickly.
This was, I think, as good of a first quarterly report as you could have possibly asked for if you're long the stock.
We'll talk about the reaction on price in a second, but I mean, this is what you want right out of the gates. They did $962 million in revenue versus $835 expected. The connectivity segment, which is Starlink and the only profitable part of the business, did $4.29 billion versus $3.83 billion. So add that to the billion or so in space, and we're talking about some decent money. And then the AI segment, $2.56 billion versus $2.18 billion expected. So between space, connectivity, AI, all three were ahead of expectations. They lost a ton of money, which we know. The operating loss for space was $542 million. The AI unit lost a billion and a quarter. And connectivity actually had operating income of $1.66 billion. There's a couple of other things in here that I thought were notable. Based on the IPO, they now have over $90 billion in cash.

**Michael Batnick** (4:13)
A hundred.

**Josh Brown** (4:15)
Is it a hundred? Okay. $36.8 billion in debt and financial leases that they've committed to.
And that's up from $22 billion. So the liabilities are up a lot, but they're sitting on a ton of cash. Starlink subscriber count, $12 million. And we know that they are now signing people up at a smaller dollar amount per user because they're going from like military contracts to consumers and places like Brazil where you're just charging less. But average revenue per user is still $66.
The same as last quarter. It was $85 a year ago, but that's been explained. It's not falling because people find it less valuable. Again, it's falling because the mix shift is changing over from professional users to regular consumers. What jumped out at you besides the things that I just mentioned?

**Michael Batnick** (5:07)
Well, right off the bat, whereas my doc, they said that they demonstrated the power of extreme vertical integration delivering revenue growth of 92% year over year.
Extreme vertical integration sounds a little bit sexual, does it not? I've never heard that.