In partnership with
GM. This is Milk Road AI, the newsletter that's one Claude update away from unemployment.
While the market continues to focus on the SpaceX IPO, our analyst just made a big bet on a company thatโs been public for 14 years.
Keep reading to find out why.๐
Another company building real infrastructure? Today's partner, Arc by Circle.
Arc is an open Layer-1 blockchain built for real-world financial applications. Public testnet is live, App Kits are here, and mainnet is getting closer. Start building on Arc.
WHAT OUR AI ANALYST BOUGHT IN JUNE ๐
Mondayโs edition was all about how Vincent is thinking about the AI market.
Today, we're looking at what Melvin is actually buying.
In June alone, Melvin added 7-8 stocks to his portfolio but hereโs his biggest bet:
Meta.
Here are 3 core reasons behind this one:
1. Building AI data centers
Meta is putting together one of the largest AI data center footprints on earth.
While this will be used to improve the feed algorithms, Zuckerberg recently hinted at something bigger:
If Meta builds more computing capacity than it needs, it could rent the excess out to other companies.
Sound familiar? Well, it's the same playbook Amazon used with AWS. ๐
AWS started as internal infrastructure but soon became a business that now generates over $100B in annual revenue.
Meta is sitting at the same fork in the road Amazon stood at in 2006.
2. Metaโs subscription angle
Meta is an advertising machine and their numbers are incredible:
- Instagram, Facebook and WhatsApp collectively have over 3B users.
- Meta is rolling out paid subscription tiers across all three.
- If 2% of 3B people pay $10 a month, that's $7.2B in recurring revenue per year.
The market is pricing none of this in.
3. You're paying less for more growth
Meta trades at 18x forward earnings while analysts expect 20.7% annual growth over the next three years.
That's a faster growth rate than Microsoft, Google, and Amazon and Meta is the cheapest of the bunch (lowest multiple at 18x).
Source: Milk Road PRO
Another way to understand this is through the PEG ratio (price/earnings to growth ratio).
If you're not familiar with PEG ratios, here's the one-sentence version:
It measures how much you're paying for a company's future growth.
Metaโs PEG ratio comes in at 0.87. So, youโre essentially paying 87 cents for each dollar that Meta makes in the future.
Here are the PEG ratios of the other big tech companies:
- Microsoft: 1.34.
- Google: 1.47.
- Amazon: Greater than 2.
Looking at Meta, itโs the cheapest of the four by a wide margin despite growing faster than all of them.
Melvin believes the market is still valuing Meta like a mature ad business.
He sees it as an AI infrastructure company with multiple new revenue streams that haven't been fully appreciated yet.
P.S. This is just one of eight stocks Melvin bought in June.
Want to see the other seven? Try Milk Road PRO for a buck for 7 days.
WE MADE 30+ TRADES THIS MONTH ๐
It was a huge week in markets, and our team was busy in Milk Road PRO.
For just a buck, you can catch every trade in real time across AI, stocks, and crypto.
Attio is the AI CRM for high-growth teams.
Connect your email, calls, product data and more, and Attio instantly builds your CRM with enriched data and complete context. Whether youโre running product-led growth or enterprise sales, Attio adapts to your unique GTM motion.
Then Ask Attio to plan your next move.
Run deep web research on prospects. Update your pipeline as you work. Find customers and draft outreach emails. Powered by Universal Context, Attio's intelligence layer, Attio searches, updates, and creates across your data to accelerate your workflow.
Ask more from your CRM.
SPACEX COULD HIT $100 TRILLION ๐
In today's episode, we broke down SpaceX's explosive public-market debut and what it means for the next phase of AI, compute, and where value lands across the stack.
Here's what you'll hear:
- How SpaceX's tiny ~4.2% float plus heavy retail demand created a memecoin-like squeeze, with 180-day lockups still ahead for many holders.
- Why the ~$60B Cursor acquisition matters: enterprise developer traffic and proprietary code as fuel for Grok.
- The case for selling compute instead of competing as a model provider, turning idle CapEx into cash and becoming the plumbing.
- How Chinese open-source models and sovereign AI are pressuring per-token pricing and frontier LLM margins.
Hit play and dive in ๐๏ธ
