This small mistake cost us thousands of dollars

1️⃣ Nvidia shatters expectations, but it wasn't enough

Nvidia showed why it is the undisputed king of the AI era: they blew past all expectations, reporting $81.6 billion in revenue in their latest quarter. Yes, you read that right, quarter. Out of those $81.6 billion, $48.0 billion turned into free cash flow. 🤯

For some context: If Nvidia continues to earn this much for the rest of the year, it could buy Delta Airlines, Porsche, Chipotle, and Coinbase in a single year. 😳

Additionally, they raised revenue guidance to $91.0 billion, increased their dividend by 2,400% (don't get too excited, as they previously paid just $0.01 per quarter), and announced a new $80 billion stock buyback.

However, the stock did not go up. As of today, it is nearly 9% below its peak from just a few weeks ago. While there are several reasons to justify a stock drop after a report like this, it is most likely due to a short-term ceiling of optimism and a potential shift in stance as they begin returning capital to investors. 

But seriously, what else can you do when you are overflowing with cash? 🤔

💡 What you should know: The AI gold rush still has a single, major provider of picks and shovels, and that doesn't seem likely to change anytime soon. Although it does feel like the market has gotten too far ahead of this company's incredible business.

2️⃣ SpaceX prepares the most stratospheric IPO in history

After weeks of rumors, Elon Musk finally hit the launch button: SpaceX published its S-1 registration. This is the document that opens up financial details, operations info, and risks to the public before investors rush to buy the stock.

This IPO (Initial Public Offering) is estimated to seek a valuation of between $1.75 and $2 trillion (short scale), which would make it the most expensive IPO in history. The goal is to raise between $40 billion and $80 billion, beating Saudi Aramco's record at the time. 💸

As expected, there are many opinions regarding SpaceX's S-1. Some see many "accounting tricks" hiding inefficiencies unrelated to SpaceX's core business, while others are seduced by the massive potential market for space-based AI data center infrastructure and, of course, the global rollout of Starlink.

The stock will begin trading on the Nasdaq under the ticker SPCX on June 11 or 12. 🚀

💡 What you should know: We are witnessing what is probably the stock market event of the decade. SpaceX's IPO will not only test market liquidity but has the potential to boost Elon Musk's bank account past the moon, making him the world's first trillionaire (short scale) in history (though truth be told, on paper, he probably already is today).

3️⃣ This small mistake cost us thousands of dollars

If you've been following us since the beginning of Endeuda2 (almost 6 years ago), you'll know about our first stock market investment experience: it was through my 401(k) retirement account back in 2012.

At just 22 years old and at my first office job (Carlos writing today), not knowing that Wall Street isn't famous for a literal "wall", I was called in to learn about a great benefit where my money could grow over time and, based on my age, I could retire comfortably at the traditional age with over a million dollars. Very tempting... And to sweeten the deal, my employer was also going to match funds as long as I contributed 4% of my salary to this account.  

Not knowing much about investing at the time but knowing that 2 + 2 is 4, I said yes immediately—how could I turn down a 100% return with virtually zero risk?

However, there was one thing that didn't sit right with me: the money was going to be invested in the stock market, and to my knowledge, people usually lose their money there. Companies go bankrupt, and if you lose it, it's gone.

Fortunately, I didn't have to take on that much risk. A Fidelity agent explained this in the presentation they were giving us at the office. I could go with a more "conservative" option, making it virtually impossible to lose my money; of course, in exchange, it wouldn't grow significantly either. But I thought: "I'm already earning 100% from my company match, if I choose the conservative option I'd be protecting that money plus mine, I'm a genius!" So, at 22, I said yes to the conservative option. What a costly mistake... 

Over 50% of my money was in treasury bonds yielding less than 2% when I should have been 100% in stocks generating ~12% compound interest (yes, 12%).

Fortunately, it wasn't too many wasted years. After educating myself a bit more on the subject and realizing the mistake I was making, I made an immediate switch to a more aggressive approach and decided to make up for lost time by increasing my contributions. 

By age 30, and practically without realizing it, I already had over $100,000 in my 401(k). And not a day goes by where I don't regret not being aggressive from day one. 

Today, Andrea and I have created a free tool that we wish we had 10 years ago to help people avoid making the mistake of allocating their capital with the wrong approach.

Find out how you should be investing with our Investment Profile tool..

Remember that everyone needs to invest, but we shouldn't all do it the same way. We know this tool will help answer a lot of your questions. 

4️⃣ Corporations keep growing, the consumer tells a different story

While the stock market seems to be riding one of SpaceX's rockets to the moon, consumer sentiment is sinking like the Titanic. 🫠

The Consumer Confidence Index plunged in May to its worst level in the 74-year history of the indicator (which began in 1952).

Consumers continue to suffer from a financial expectation depression, mainly due to the cumulative increase in the cost of living since 2020 (which is overall about 25% more expensive) and the steady rise in gas prices. 

This consumer sentiment directly contradicts investor sentiment. It's like feeling happy every time you look at your investment account, but that happiness vanishes the moment you step into the supermarket (it happens to us).

💡 What you should know: I know we've talked about this before, but it's important to remember that the market and the economy are not the same thing and don't move at the same speed. But one should reflect the structure of the other, and right now they seem to be speaking different languages. A financially exhausted consumer could start cooling down real retail spending and compressing corporate margins.

5️⃣ Superinvestors disagree on Big Tech

It has been 3 months since superinvestors last published the buys and sells in their investment portfolios.

These current reports covering Q1 are probably the most important of the year because, if you recall, the previous report covered Q4 of 2025, which was before the SaasPocalypse and before the Big Tech sell-off. So today we finally get to see the aftermath.

We can see if superinvestors took advantage of the dip just like many of you and we did. Spoiler alert: they did.

The interesting part is that while some sold Alphabet, for example, to buy Microsoft (yes, many bought Microsoft), others sold Microsoft to buy Alphabet, among several other transactions.

You have no idea how much I've been waiting for these reports, and we want to tell you everything we saw here 👇