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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good morning,

My question is on Circular Deals in AI investments:

Circular deals involve investment money flowing between companies that also buy from or sell to one another.
"A series of agreements negotiated among a small number of players in the artificial intelligence (AI) field is raising concerns about the potential risks of so-called circular deals." https://www.pon.harvard.edu/daily/dealmaking-daily/what-are-circular-deals/
Recently, OpenAI and NVDA reached a deal where OpenAI would receive up to $100 billion in investments from NVDA. This could be viewed as a circular deal, as OpenAI is likely to buy gear from NVDA, which will reinvest those profits in OpenAI, creating a cycle.
What are your thoughts on circular deals? In my view, such a deal could artificially inflate NVDA's revenues, potentially leading to a correction in the valuation of the companies involved. Is this practice proper or legitimate? These deals aren't only between these two companies, it appears to be widespread.

Thanks. I appreciate your all the videos that you provide: The Exponent, Monthly Rollup etc.
Seasons Greetings.

Elaine
Read Answer Asked by Elaine on December 08, 2025
Q: Your thoughts on Netflix Pursuing Warner Bros. Discovery?
I find Netflix’s interest in acquiring Warner Bros. Discovery puzzling given the risk profile — regulatory and antitrust hurdles, political sensitivities, legacy assets like CNN that don’t align neatly with Netflix’s model, and the potential future debt burden Netflix may need to take on to finance such a deal.
Beyond regulatory issues, the integration risk seems significant — merging two different cultures, operating systems, content strategies, and media infrastructures could easily become management-distracting and value-eroding.Given all this, would you continue to hold NFLX while these scenarios play out?
I seek your views on:
• whether the strategic upside outweighs the regulatory and integration risks after year one post acquisition
• whether additional leverage to finance a large takeover strengthens or weakens Netflix’s long-term positioning (and especially whether increase in NFLX subscription cost could backfire
• expected regulatory posture toward such a transaction
• how you would position NFLX through this uncertainty (specifically whether you would hold through turmoil I expect). Thank you. :ao:

Read Answer Asked by Adam on December 08, 2025
Q: Is Larry Fink betting a major part of BLK’s future on block chain and more specifically ethereum. BMNR has been mentioned as a potential acquisition to get the amount of ethereum that BLK would need to achieve a strong position in that market.

Does your research suggest that all this is likely and/or in action. AND would you consider this to be a good time to buy BLK shares ? Thanks
Read Answer Asked by Donald on December 08, 2025
Q: Hello gentlemen: I am looking for companies to top up such that their current PE is near or within its last 10 years average. Which of the above is your Most prefer to least. Feel free to add a few more that isn't mentioned above.
Can you name a few US ones , say 4-5 companies. Thank you
Read Answer Asked by DAVID on December 08, 2025
Q: Please update your opinion on CVLT including details on guidance and any contract wins. It came onto my radar after Ryan made an appearance touting it as one to watch. On Sept 4, you mentioned in a question that it was ok but expensive and preferred others. At $120-125 per share does it represent an opportunity or is it still expensive? Why or why not and if NO, at what price does it become a yes based on potential?
Read Answer Asked by Tim on December 05, 2025
Q: Can you please update your opinion of PSN based on the news from today and negative market reaction? What did the market not like with the new contract?
Would you recommend a new position if it can be bought below $73 or is there another level, time period or follow up news item that you would need to see before initiating a new position? Finally, would you rank it in your top group of favourite growth stocks after today's news and market reaction? If not, please state two that look better based on this weeks news and market activity
Read Answer Asked by Tim on December 05, 2025
Q: Do you have a preference between AEP and DUK? My objective is to add some stability and balance to an otherwise aggressive portfolio. I looked at FTS and EMA, but I have limited understanding of the Canadian market. If you believe a Canadian utility offers better growth potential, I would appreciate your insight and any suggestions you may have, given this objective. (Canadian taxpayer; this is for a tax-deferred acc).
Read Answer Asked by Adam on December 04, 2025
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