Big announcments and tech fading?

07/30/25 Prospero.ai Investing (238th) Edition (Midweek)

First off, some UNBELIEVABLE NEWS! Our CEO George Kailas was just chosen as CEO OF THE YEAR by CEO Monthly! I know that I speak for the entire team when I say that George is not only a visionary in the field of A.I and Finance, but a genuinely good man that is a joy to work with. I have a feeling this is only the beginning of what George and our favorite company is going to accomplish in the years to come. Congrats boss!

One more piece of incredible news. We launched our Crowdfund! We've been working on this idea for a while and it's amazing to see it come to life. What's incredible is within 48 hours we have already crossed $127K in commitments!

We did want to share some exciting results for our communities growth in the last 60 days:

• X following doubled and other socials have accelerated

• App monthly active users grew 2x to 12.7K

• Overall weekly actives (with newsletter) up 50% to 14.4K

• Weekly active users on the app increased 5x

We also want to talk about an interesting trend we're seeing with Hedge Funds allocating capital. As of last week, Goldman Sachs reports that Hedge Funds dumped Tech Stocks at a significant rate last week. GS stated that "This week's exodus was the largest we have seen since July of 2024". Why does that matter? Because June and July of 2024 experienced a fairly significant decline in the QQQ. Another point of interest was that every kind of tech stock was abandoned: chips, software, etc. On the other hand, it looks as if Hedge Funds moved that capitol to Consumer Staples. This seems to not necessarily be a "Flight to Safety", but more of a sector rotation. Why? These Hedge Funds didn't short QQQ, they just went long in Consumer Staples. This is indicative of a shift in sectors, not a reversal of the trend. One final thought is that the options markets point to the reality that big money is still bullish on the QQQ. We are currently seeing in our QQQ Net Options Sentiment which is currently in the 50's (historically Bullish for QQQ's ETF). SPY Net Options Sentiment is in the low 30's, but that's a lot higher than it's been over the last couple of months. We'll be watching this closely in the days to come. Historically, our Net Options Sentiment has been highly accurate at picking up trend reversals before they happen. Now a word from the CEO of the Year!

A WORD FROM OUR CEO

The assets we tend to play the most — growth had a tough day yesterday, not to mention we were exposed to more small cap growth than usual. We had some good hedges to stave off worse losses and our paper trading portfolio is beating the S&P 500 by 71% annualized, with a win rate of 60% against SPY benchmarks.

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Big announcments and tech fading?

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