Patient Equity Capital is a Virtue

**Guy Adami** (0:00)
When will M&A activity pick up? Will this year mark the return of IPOs? Listen to Strategic Alternatives, a podcast from RBC Capital Markets to get insights on these questions and more.
Explore the trends in market forces impacting deal flow, and find out how companies' investors are shifting their strategies to drive growth and unlock value. Listen and subscribe to Strategic Alternatives today, available wherever you get your podcasts.

**Dan Nathan** (0:28)
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**Guy Adami** (0:31)
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**Dan Nathan** (0:36)
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**Guy Adami** (0:43)
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**Guy Adami** (0:58)
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**Dan Nathan** (1:27)
All right, welcome to the OK Computer Podcast. I am Dan Nathan. That is Guy Adami.

**Guy Adami** (1:30)
Hi, Guy. I'm so excited to be here. I love the OK Computer Podcast, but I particularly like the band that it's named after, the Metallica.

**Dan Nathan** (1:38)
Don't do that. Just don't do that, okay? We all know that it's the Radiohead, and it's basically inspired by the 1997 album OK Computer. That's okay. Well, the way we're doing it over here is okay. AY Computer, the original name guy came from this complicated relationship that we have with technology. And by the way, the queen of technology, Kara Swisher was on with us, I think, that first year, and she told me she hated the name, but it has stuck, Guy, and we're still here. You and I got a lot to talk about today. We are recording this at 1 p.m. on Tuesday afternoon. You're gonna be listening to this on Wednesday morning. I have no idea where the market's gonna close. The main story, though, today is the weakness in memory stocks and chips, so we're gonna hit that. SpaceX added to the NDX, that's the NASDAQ 100 today. A bunch of initiations came out, pretty much all very bullish, I think all very bullish. We're gonna talk about the rotation into software, some interesting stuff going on there. But let's just start with Semi's memory storage. I mean, this is the back and forth that we're seeing, Guy, on a day-to-day basis. It seems like it's always some form of data point that's driving it. It doesn't seem like there's been too much of that going down for no reason or going up for no reason. It is announcement driven right now. But the question that I have is this kind of widening of the volatility bands here.
This is a story, right? On the way up, it seemed to be like nick by nick by nick, you know what I mean? Just kind of little by little. And on the way down, it just seems like there's this back and forth up 5-10%, down 5-10%.
What do you make of this? And is this really going to be the thing that puts a dent in the major indices? Because right now, the NASDAQ is down about 5% from its all time highs, S&P about one and a half or so.

**Guy Adami** (3:27)
I think you started it in the right place. And so you break down the memory, and I think the first name that people think of is Micron. Although they're all going to look very similar, but let's just talk about Micron, which is still, despite the move, lower over the last couple of weeks, north of a trillion dollar market cap company. And the move from middle of March to late March, when it was about a $300 stock, until I want to say early June, when it breached or the first time $1,000 a share, pretty much a straight line to the upside. Something has changed though since early June. Now you're seeing almost on a daily basis, moves up 8% to 10% to the upside, followed by moves down 8% to 10%.
And that to me is not symbolic of something that's healthy. Now, I think the optimist will say we're churning, we're going sideways and we're getting ready for the next leg higher. I can understand that. I think the pessimist, of which I am one of them, will say this is typically the churn you see towards the bottom, but in this case, towards the top. And I think more and more people are starting to come to the realization that, hey, wait a second, this is a great secular growth story, but like many of them, it's not gonna last in perpetuity and it's gonna come to an end. And I think some of the formations we've seen on a technical basis sort of, I think, are backing up potentially some of the fundamental cases or the fundamental arguments that will be made over the months to come.