Searching For Value Outside the U.S. — ft. Lyn Alden
Mar 20, 2025
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Lyn Alden, an independent analyst and author of "Broken Money," brings her insights on stock market trends and investment strategies. She discusses the recent market correction, framing it as a natural cycle, and speculates about a potential shift from U.S. to international markets. Lyn also critiques federal spending under Trump and discusses the implications of a national crypto reserve. Lastly, she shares key investment themes she's targeting for 2025, emphasizing the importance of diversification and exploring global opportunities.
Klarna's upcoming IPO reflects a significant revenue growth and operational transformation despite criticism surrounding its 'Buy Now, Pay Later' model.
Google's acquisition of Wiz for $32 billion exemplifies a strategic shift in enhancing cloud security amid changing regulatory landscapes.
The potential establishment of a national crypto reserve by the U.S. government raises questions about its actual necessity and strategic implications.
Deep dives
Introduction of Klarna's IPO Plans
Klarna is planning to go public with an anticipated valuation of $15 billion, a significant drop from its peak of $46 billion during the pandemic. The company, known for its Buy Now, Pay Later service, has faced criticism as its model is seen as a rebranding of debt, which carries a negative perception among consumers. However, Klarna has improved transparency about its business practices and has reported nearly $3 billion in revenue, reflecting its operational transformation. Despite concerns about the sustainability of BNPL services, Klarna's adaptation and revenue growth may contribute to a positive reception for its IPO.
Google's Acquisition of Wiz
Google intends to acquire the cybersecurity startup Wiz for $32 billion, up from an earlier offer of $23 billion that was abandoned due to regulatory concerns. This acquisition indicates a strategic move to enhance Google’s cloud security offerings, particularly as it seeks to adapt to the pressures of a competitive tech landscape. The timing of this renewed effort coincides with a shift in regulatory attitudes, as the previous administration's antitrust leaders have been replaced. This change may have reduced perceived risks associated with the deal, making it more attractive for both parties involved.
Intel's New Leadership Strategy
Intel's new CEO, Lip Boo Tan, aims to revitalize the company's focus on AI and improve manufacturing processes, which may involve significant layoffs. Tan's return to leadership comes after a tumultuous period marked by disagreements with the previous CEO about necessary staffing reductions. His vision includes restructuring Intel to emphasize chip production specific to AI applications, which could lead to a more agile and innovative company. Investors have responded positively to Tan's appointment, as the stock saw a significant uptick under the promise of change and a clearer direction.
Impact of Tariffs on U.S. Trade Policy
The ongoing discussion about U.S. tariffs has reignited concerns regarding their potential negative impact on the economy, with many financial analysts considering the move a poor strategy. Tariffs could lead to inflationary pressures and disrupt supply chains, especially as companies may find it difficult to implement structural changes quickly. Furthermore, the long-term effects of such a shift are uncertain and could have political repercussions, especially as the U.S. grapples with trade deficits and an urge to reindustrialize. The consensus among experts suggests that while tariffs are politically appealing, their economic implications could prove detrimental.
Cryptocurrency and U.S. National Reserve Strategy
The establishment of a national crypto reserve by the U.S. government, intended to include Bitcoin and several popular altcoins, has sparked debate about its strategic benefits. While the initiative aims to signal a commitment to cryptocurrency as a serious asset class, many argue that there is no pressing need for the U.S. to hold Bitcoin in this way. Critics view the policy as more of a marketing move than a substantive change in how the U.S. engages with digital assets. Nonetheless, separating Bitcoin from other cryptocurrencies in terms of reserve management could help mitigate risks associated with less established digital assets.
Ed and Scott open the show by discussing Klarna’s IPO, Google’s acquisition of cybersecurity startup Wiz, and Lip-Bu Tan’s new plan for Intel. Then Lyn Alden, independent analyst and the author of Broken Money, returns to the show to break down the latest stock market correction, explaining why it’s a natural part of the market cycle. She explores whether we’re about to see a rotation from U.S. markets to international ones, unpacks why she doesn’t think federal spending will come down under Trump, and gives her take on the national crypto reserve. Finally, Lyn shares an update on her portfolio and reveals the key investment themes she’s focused on for 2025.
