SpaceX Disappoints, AI's Free Cash Flow Shrinks, Meta Struggles | The Weekly Wrap

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More exactly, because the more you do with Venmo, the more you get, like earning up to 5 percent cash back with Venmo stash on a bundle of brands.

**Steve Eisman** (0:16)
So, order more pizza.

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**Steve Eisman** (0:56)
The much-awaited SpaceX reported for the first time. I would call the results very mixed, at best. But Elon Musk, he has believers, not investors. Palantir reported, let me set the stage for the significance of this report. The company was caught in the SaaS-pocalypse debate. AMD's results were not well-received. AMD is trying to compete with NVIDIA, tough job. Until now, the market has been indiscriminate in taking down all software companies. But there are the beginnings of shift. It will be interesting to see how the market digests this.
Hi, this is Steve Eisman, and welcome to another episode of The Weekly Wrap. This is for the week ending Friday, August 7, 2026, but recorded Thursday night, August 6 First, a couple of housekeeping announcements. After this wrap, we will do one more wrap for Friday, August 14
After that, we will take a two-week break, so there will be no wraps on August 21 or August 28 The wrap will resume on Friday, September 4 Also, there will be no free interviews during that period, so our last free Monday interview will be released on August 17
There will be no free interviews for two weeks, and our free interviews will resume on Monday, September 7 Throughout this period, however, we will release our Wednesday Premium Podcasts. Also, the best way to support The Real Eisman Playbook is to subscribe to Substack at therealeismanplaybook.substack and to YouTube at The Real Eisman Playbook. Subscriptions are free, and we really, really, really appreciate your support. The link to join for free is in the description. Let me quickly flag what's in our Premium Substack subscription. On Wednesday, August 12th, we will release an interview with Stephen Cook, who is a recurring guest. Stephen is a Mideast expert and a member of the Council of Foreign Relations. We discuss the state of the conflict with Iran and examine the various ways the conflict could go. The link for Premium is realeismanplaybook.substack.
This week's wrap will discuss 1 The war in Iran, 2 More thoughts on the demise of the Situational Awareness Hedge Fund, 3
Some thoughts on free cash flow for AI players, 4
A word on private credit, 5 Earnings reports, of course, and 6
My official TV recommendation list. Early in the week, President Trump canceled bombing Iran and stated that talks had resumed. By the end of the week, news reports indicated that the parties were close to opening the strait, but nothing on nuclear materials at all. We shall see, but the market rallied back to all-time highs, and oil prices declined below $80.
Over the weekend, I posted a short note on Substack, in which I stated that the reasons for the demise of the Situational Awareness Hedge Fund was the leverage, which was four times, and the fact that the longs and shorts were completely correlated. And I'd like to explain this correlation concept further, because I did not make it clear. Imagine I'm long Goldman Sachs and short Fair Isaac, FICO. I'm long Goldman because I think the current strong investment banking cycle will last a long time, and I'm short FICO because I believe it is going to lose its consumer scoring monopoly. That's my thesis. Forget about whether you agree with these investment cases or not. The point here is that the two stocks have literally nothing to do with one another. The fundamentals of both companies are completely independent. The two positions are uncorrelated. If I could construct a long short portfolio with positions like this, I'd have an uncorrelated long short portfolio. Now imagine it's the early 1900s, and I believe that the automobile is going to conquer the world and replace the horse carriage. Then imagine that I construct a portfolio where I am long, every public auto and auto parts company, and I'm short every public horse carriage company. This portfolio is the exact opposite of Goldman and FICO. The longs and shorts are completely correlated. If autos go up, carriages must go down and vice versa. Now, what's the matter with that, you say? Isn't the thesis completely correct? Well, obviously, in 2020 hindsight it is. And that is true. But over what period of time? Imagine there is a bad car accident. It gets a lot of press. All of a sudden, people start to doubt. The future of the automobile and our longs all go down, and our shorts all go up. Every trade goes against us at the same time.