; Earning’s Breakdown

Subject: Infinite Innovation | Q1 Earnings Breakdown:

Happy Hump Day To The G.L.A’s, aka the Greatest Living Americans, aka the readers of this Newsletter!

Let’s get one thing straight: Wall Street is not as smart as people think. These are the same analysts who punished Palantir after it quadrupled profits because the beat wasn’t big enough, and the same crowd that spent months panicking over Nvidia’s capital expenditures—completely failing to understand that the ROI on AI infrastructure spending will be absolutely massive. They obsess over quarterly line items while missing the generational wealth transfer happening right in front of them. The institutions are playing checkers while G.L.A INVE$T and our subscribers play Chess!

We are deep into Q1 2026 earnings season, and the pattern is undeniable: the market punishes vision and rewards short-term optics. But for those of us who actually understand the exponential nature of AI adoption, this is where fortunes are made—buying the fear that Wall Street manufactures around the very companies building the future.

Here is our breakdown of the most critical earnings reports, the historic cloud capex supercycle, and the IPO maneuvers shaping the innovation landscape this week:

The AI Infrastructure Boom (AMD, WDC, AMZN)

The plumbing of the AI revolution remains a bulletproof trade.

• Amazon (AMZN): AWS is back with a vengeance. Amazon hit a record high after reporting its fastest cloud sales growth in over three years. Their proprietary AI chips are now hitting a $20 billion revenue run rate. They are building the picks and shovels, and the market knows it. IM Buying for my self and for my kids IRA’s

• Advanced Micro Devices (AMD): AMD stock violently ripped 15% upward on Tuesday following a massive Q1 beat. CEO Lisa Su doubled her long-term forecast as data centers aggressively scramble for CPUs. The hardware supercycle is nowhere near exhausted.

• Western Digital/SanDisk (WDC): You can’t build data centers without memory. Parent company shares surged this week as the foundational hardware players continue to siphon capital away from the bloated software sector.

The Cloud Capex Supercycle: $570 Billion and Counting

Last week, the three largest cloud providers—Amazon, Microsoft, and Google—reported quarterly earnings with an unambiguous message: cloud growth is accelerating, not maturing.

Despite having the largest base among cloud providers, AWS revenue growth accelerated from 24% in Q4 to 28% year-over-year. Microsoft Azure, the second largest, accelerated from 38% to 39%. And Google Cloud Platform absolutely exploded at an astonishing 63% growth rate. Surprisingly strong AI adoption is driving that acceleration, turbocharging traditional compute workloads and cloud migrations. AI is amplifying—not cannibalizing—the legacy cloud business.

To meet demand, the hyperscalers are committing capital at a magnitude that would have seemed inconceivable just two years ago:

As aggressive as those investments seem, the cloud providers are responding to nothing more than contracted demand. Many of those commitments should convert into revenue during the next 12 to 24 months. In other words, the capex is not chasing a hypothetical future—it is racing to keep pace with demand that already exists on paper.

Notably, the management teams have changed their tone. In past quarters, Microsoft and others seemed to be proceeding cautiously on capex. Now that the magnitude of the opportunity has come into full focus, hesitation has given way to conviction. The value that AI is creating, and the corresponding pull from consumers and enterprises, is outstripping the infrastructure necessary to run it—leading to reported compute shortages at labs like Anthropic.

According to ARK Invest’s research, this trend has years to run before supply catches up to demand: data center systems investments could top $1.4 trillion by 2030. The buildout is in the early innings of a multi-year capital spending cycle anchored by contracted demand for autonomous digital knowledge workers.

The Software & Ecosystem Layer (PLTR, SHOP, HOOD)

Wall Street’s favorite punching bags—companies they don’t fully understand.

• Palantir (PLTR): This is exactly what we’re talking about. Palantir posted blowout earnings, quadrupled profits, and raised guidance on the back of massive U.S. government sales. Wall Street’s response? Dump the stock because the revenue beat wasn’t astronomical enough for their spreadsheet models. These analysts cannot comprehend that Palantir’s government moat and AI operating system are compounding assets—not quarterly trades. The smart money is accumulating while the suits panic. Im Buying with both hands!!!

• Shopify (SHOP): Shopify is taking a brutal beating, dropping over 15% after missing EPS estimates and warning of high-twenties growth in Q2. But beneath the 31% EPS miss, revenue actually grew 34% year-over-year and GMV topped $100 billion. This is a massive overreaction to short-term operational spend. I like this a a trade, I would bet that Ark Invest is buying the dip.

• Robinhood (HOOD): Last week, Robinhood reported Q1 results with softer-than-expected transaction revenues ($623 million, up 7%) due to a massive 47% drop in crypto trading activity. Wall Street punished them for the top-line miss, but they are entirely missing the real story: Robinhood Gold. Yup, Im Buying.

Gold is Robinhood’s $5/month subscription tier and—increasingly—the gateway to its entire ecosystem. Gold subscribers can access banking, credit, managed portfolios, margin, a 3.35% APY on uninvested cash, Morningstar research, and Level 2 data. More than a bundle of products, Gold deepens user engagement on the Robinhood platform, raising switching costs as it consolidates financial lives within the ecosystem.

The difference in behavior between Gold and non-Gold users tells the story: subscribers hold 5x the assets, grow deposits 1.2x faster, and adopt retirement accounts at 3.3x the rate. Attach rates among funded customers have climbed to 15.8%, with ~40% of new users opting in at signup.

Parallels with Amazon Prime are instructive. Prime offered free shipping and became the gravitational center of Amazon’s ecosystem. Gold is following the same playbook—priced to maximize adoption instead of near-term revenue and designed to transform intermittent brokerage users into high-frequency financial users.

$HOOD flywheel is spinning. 

In Q1, just two quarters after rolling out, Robinhood Banking hit 100,000 users and $1.6 billion in deposits. The Gold Card quadrupled to 765,000 over the past year, and Robinhood Strategies hit $1.5 billion in AUM in little more than a year. The products are reinforcing one another: Banking drives deposits, deposits fund investing, and spending data informs credit—all compounding within Gold.

Compounding matters because brokerage is cyclical while banking and spending are daily activities. By layering them on top of brokerage, Robinhood is quietly shifting from a transactional model to a recurring revenue, relationship-driven model. Gold subscriptions have been generating ~$100 million in annualized recurring revenue (ARR), with the Gold Card not far behind.

The Crypto Pivot (MSTR)

• MicroStrategy (MSTR): Wall Street is hyperventilating over Bitcoin volatility, but Michael Saylor’s message to investors during this week’s earnings call was unmistakable: he is “Built for this”—with a capital Bitcoin B. While retail panics over a healthy 50% midcycle correction and capitulation following long-term holders taking profits above the $100,000 mark, the real story is the institutional arms race happening behind the scenes. BlackRock’s IBIT just added nearly 4,200 Bitcoin in a single day, desperately trying to close the gap with MSTR while Strategy’s ATM (At-The-Market) offering is temporarily on hold. But make no mistake—once Saylor fires the stretch ATM machine back up, they are on a collision course to hit 1 million Bitcoin before BlackRock even sniffs 950,000. The super cycle is intact, the business cycle is showing signs of an expansion phase, and we are holding strong above the bull market support bands. Im buying more $MSTR and $STRC ( ▼ 1.29% )  

IPO Watch: The Incoming Capital Drain (Cerebras & SpaceX)

Get ready for a massive liquidity vacuum as two titans prepare to hit the public markets.

• Cerebras Systems: The Nvidia challenger just filed updated IPO terms aiming to raise $3.5 billion at a $26.6 billion valuation. Demand is ferocious—reports indicate the book is already oversubscribed 3x with $10 billion in institutional orders waiting.

• SpaceX: The apex predator of the private markets is targeting an early June roadshow. Expect a massive pre-IPO stock split (similar to their 10-for-1 split in 2022) to bring the nominal share price down to retail-friendly levels. They are also reportedly structuring dual-class shares to ensure Musk retains total control. When this $1.5 trillion behemoth drops, it will likely drain retail capital from every other speculative tech stock on the board.

The S&P Wants to Fast Track SpaceX

This is massive and most people are sleeping on it. The major equity index providers are overhauling their inclusion rules in anticipation of potentially the largest IPO wave in history: SpaceX, OpenAI, and Anthropic could all go public in the next year or so.

With ~$24 trillion in passive assets benchmarked to the S&P 500 Index, S&P Dow Jones Indices announced the prospect of several sweeping methodology changes: a decline in the seasoning period from 12 months to six months and a waiver of the GAAP profitability requirement for mega-caps generally worth $100 billion or more. Based on current requirements, neither OpenAI nor Anthropic would pass muster. The S&P comment period ends on May 28, with changes implemented as early as June 8—just in time for SpaceX’s expected listing.

Meanwhile, Nasdaq’s new “Fast Entry” rule went into effect last week, allowing newly listed companies with market caps in the top 40 of the Nasdaq-100 to join the index in just 15 trading days, well below the previous three-month timeline. FTSE Russell has also proposed shortening its waiting period from quarterly to just five trading days.

Compare that to the situation Tesla faced in 2010 when it IPO’d and had to wait 10 years to enter the S&P 500. Then, in the narrow window between hitting the milestones necessary to enter the S&P 500 in July 2020 and actually being added in December 2020—notably, after the committee initially passed on its inclusion in September 2020—TSLA appreciated ~130% and added ~$360 billion in market cap. Passive investors benchmarked to the S&P 500 captured none of that appreciation. Index providers seem determined not to repeat that mistake.

The G.L.A. Takeaway:

Do Not Listen to Wall Street analysts who told you Nvidia’s capex was “unsustainable” and who dumped Palantir after a quarter that most companies would kill for. The ROI on AI infrastructure remains a thesis, not a certainty. The cloud capex (SPENDING/INVESTING) supercycle alone represents $570 billion in committed spend this year, backed by over $1.4 trillion in contracted backlogs. The only question is whether you have the conviction to hold while the suits try to shake you out.

At G.L.A INVE$T , we are here to help you with Volatility Tolerance. Email me for one on one coaching, Always remember to Focus on tangible innovation, brace for the IPO supercycle, and let the institutions buy back in at higher prices.

Stay Great, Stay Frosty My G.L.A’s!
– Coach KYLE & G.L.A INVEST RESEARCH