The Trade War Just Got A Lot Worse

This episode explores the escalating trade war between the U.S. and China and its impact on various companies, beginning with ASML's earnings report, which was influenced by trade war uncertainties and guidance concerns. The conversation pivots to the U.S. government's decision to block NVIDIA from selling its H20 chips to China, a move perceived as a major bargaining chip in the trade war, with implications for NVIDIA's revenue and the broader semiconductor industry, including AMD and TSM. Against the backdrop of these trade tensions, the discussion shifts to Bill Ackman's investment in Hertz, framed as a potential turnaround play, and then transitions to leaked internal guidance from Netflix, revealing ambitious targets for market capitalization, revenue growth, and subscriber acquisition by 2030. More significantly, the host analyzes the potential motivations behind the Netflix leak, considering whether it signals upcoming poor earnings or reinforces long-term confidence. The episode concludes with insights into Warren Buffett's past decision to sell TSM due to geopolitical risks associated with Taiwan's proximity to China, and emphasizes the importance of investing in companies with strong fundamentals that can withstand economic uncertainty.