Say Bubble One More Time. I Dare You! | Animal Spirits 474

Summary

Michael Batnick and Ben Carlson discuss the sharp selloff in several tech stocks while the broader market holds up. Michael reveals he is buying Netflix and holds IMAX as his biggest position, while Ben argues Nike has lost its moat. They push back on bubble calls, noting compressing valuations and strong earnings. Other topics include extreme speculation in South Korea, the disappearance of recessions, boomers upsizing homes, the movie box office recovery, and the truth API controversy.

• Many name-brand tech stocks have crashed 30-60% while two-thirds of US stocks are positive YTD.
• Michael Batnick is actively buying Netflix despite its 50% drawdown, citing 30% margins and a market multiple.
• IMAX is Michael's biggest position, driven by Christopher Nolan's The Odyssey and record IMAX pre-sales.
• Ben Carlson declares Nike has lost its brand power and the stock is unlikely to regain its former highs.
• Both hosts strongly refute bubble fears, noting S&P 500 forward P/Es are compressing, not expanding.
• South Korea's equity market is experiencing record volatility and margin-call driven deleveraging.
• The hosts argue structural changes have made US recessions less frequent and shorter.
• Movie box office is rebounding with AMC reporting its best quarter ever, but pre-pandemic levels remain far off.