Let's talk some stocks because when you were last on we talked Snowflake. We knew the earnings were coming. You had said you were still a huge holder of it personally, but no longer in your public fund. My goodness, what's your reaction to this? You all you can do is chuckle when you look at moves like this. What's going through your mind when you see that?
Well, first and foremost, when I was on your show, I think you remember that I said, Scott, I think it was about two weeks ago, I said the data infrastructure companies like Snowflake, Databricks, and ClickHouse, they're all in the token flow. What do I mean by that? As more tokens are consumed, it accelerates their core data business. I suggested I thought they would have a great quarter and wow, they had a blockbuster quarter. Hats off to the team at Snowflake and to Sridhar for doing this. This is a very different story than software apps like, for example, Salesforce that more directly compete with the AI model companies. But if you peel back the covers on what they reported, 33% growth, accelerating growth versus consensus of 27% growth. They took up their full year guide by more than their Q1 beat. And the massive beat really came from these two trends. AI is accelerating their core, more tokens, faster growth in their core. And number two, their products like Snowflake Intelligence and Cortex Code hit a critical mass in Q1. So, I expect this growth to continue. We're seeing it as well in other companies that we own like Databricks and ClickHouse. But Snowflake continues to be a very, very large personal holding for me. We moved out of it in the fund, Scott, because I'm in the business. I have to manage this stuff. Year-to-date, Snowflake is up 10% even including today's moves. Compare that to what we moved the money into like Micron which is up 200% year-to-date or ARM which is up 200% year-to-date. So for our investors, for our shareholders, that was the right thing for us to do even though today is an absolute spectacular well-deserved blockbuster day for Snowflake.
So a couple things. So you're not taking any profits for example in Micron given the crazy move that we've even seen since we last spoke just as you said two weeks ago. Let me deal with that first and I have another question about Snow and Databricks.
Right. So yes, we are actively managing our portfolio, Scott. I can't give you every tick and trade, but I will say with these parabolic moves, we absolutely are making sure that we're taking down some of our exposure in names that exceed our price targets, rotating it into other names, but remember, on the All-In Pod, we have this phrase, let your winners run. So a key in this business is that you got to let the best companies continue to compound. You've heard me say it on this show before. A simple heuristic for the people watching at home, think about managing your portfolio in three sizes, small, medium, and large. And when things are all washed out, when everybody's despondent like they were earlier this year over the start of the Iran war, maybe you take your portfolio to a large position. When everybody gets euphoric, you may want to take your portfolio from that large position to a medium-sized position. In my parlance, I call it 369, 30%, 60%, 90%. So of course, when we see these types of moves, we take a little off the table that we can redeploy when we see volatility in the market. That's our job.
So back to Snowflake for a minute because you put it in the same category as Databricks, which you're an investor in obviously and we wait for that to go public, too. To what degree is Snowflake, to use the words that Cramer used this morning, coming after Databricks? The competitive angle now, what does that mean?
Well, make no mistake about it. These companies have been competitive from day one. They're run by incredibly competitive people. They do very similar things. But, at the same time, this is one of the largest TAMs the world has ever known, intelligence. Every small, medium, and large business in the world is going to consume more tokens in the future, more intelligence in the future. So, there's plenty big TAM for both of them to grow very quickly for a long period of time, but they're going to battle it out. I don't think it means that one's going to win and one's going to lose. And don't count out ClickHouse, which may be the fastest growing of the bunch, which is also one of our shareholdings. We fundamentally believe that data is the oil that runs the AI engine, and these are three of the most important companies in providing the data. So, as more tokens are consumed, more data is consumed, and these companies are benefiting from that. And you see it in the results.
Hey Brad, it's Josh Brown. If let's say a hypothetical CNBC viewer with $100,000 in cash for whatever reason, they want to put it into the market, they believe in the AI story, they believe it's secular and it's got years to go. But, they're staring down the barrel of an $86 billion IPO raise in the near term, not to mention probably something close when you combine Anthropic and OpenAI, maybe even more. Can the market support that much supply of new tech stock hitting the market at the same time? What would you tell that viewer who's saying, 'Yes, I want to invest. Yes, I understand I shouldn't time the market, but I feel like there are three asteroids headed for Earth and maybe I should wait till after.' How would you think about that if you were that viewer?
Yeah, Josh, great question and I loved your earlier commentary on Snowflake. Let's just say this, today is not the day that you shove all in on the market. Go back to the heuristic I use, 369. And let's say you have zero in the market today and you want to put $100,000 to work, then I would put three. Right? I would put 30% of that to work because you have to start at some point and then you wait for your moments. Yes, we have incredible IPOs coming starting with SpaceX rumored on June 12th. Hopefully I'll be back in the New York Stock Exchange with you guys. It's going to be an incredible IPO. It's going to raise about 75 billion dollars. So, when if Altimeter and we do want to buy the SpaceX IPO, I've got to raise that money from somewhere. So, I've got to sell some other stocks in order to buy SpaceX. That's just the way it works. We don't have unlimited capital. And when Anthropic comes public in the fall or OpenAI comes public in the fall, I'm going to have to sell something else to buy this. So, your point is certainly correct, but the only thing I would say, Josh, is remember the depth of our capital markets. I mean, we're talking a hundred trillion relative to 75 billion dollars. So, in the grand scheme of things, I think particularly because we're going to have early adoption, early inclusion in the index for SpaceX, I think there's going to be enough capital to do that. But the bigger risk right now is simply that we've come a long way quickly. We could have a 10 to 20% consolidation in the SOX or these other technology and AI markets and that would be a run-of-the-mill consolidation. So, you want to make sure that if you're watching at home, you have some cash on the sideline. So, when the market comes in, the secular trend doesn't change. AI is where you want your money, but you have some more dry powder to buy those things.
I look, the one thing I'm thinking about with the inclusion of the indices is Brad, I'd like your opinion on this, is the weighting in the indices because they're going to have a market cap SpaceX, you know, one and a half trillion, and yet at least with the triple Qs they're talking about something like three times the float. Do you see any discrepancy in that? Does that lead to more upside if the float becomes bigger and they can add more to the indices? Just curious about your thoughts on that.
Yeah, I mean, honestly, I've seen a lot of analysis on this, Jim. It frankly is a little too complex, I think, for most of the viewers at home and even for myself. I'm not going to try to game that. All I know is this, there's no human being on the planet that is better at turning electrons into tokens than Elon Musk. Let me say that again. Because we focus a lot on the launch business, we focus a lot on the communications business, which is Starlink, which we all benefit from. But Elon is building the biggest data centers on Earth and eventually in space of anybody, and nobody is better at turning those electrons into tokens. That is an extraordinarily valuable place to sit. He just struck a huge deal with Anthropic. I think more deals are to come, and that from my perspective totally changed the game on the SpaceX IPO. I knew that the launch business was great. I knew that Starlink was great, but that alone would not justify the valuation. Him building the data centers which are going to power all of AI and him then using those to train up his own AI with incredible team that he acquired from Cursor, I think is a total game-changer for the IPO and puts them in a really good position.
Wow, okay. You come sit with us mid-June and we'll do what we did for Cerebras. That was fun, and I appreciate the visit today.
Josh Brown's best stocks in the market and before we get to today's name, you just launched a new strategy. Conveniently called Porterhouse.
Tell me about that. What is it?
So Porterhouse is a separately managed account strategy that we employ for clients at Fidelity and at Schwab. It's not all of the clients' equity exposure. It's a portion where we're trying to do what we talk about a lot here on the show. Own the best stocks in the market. It is systematic. We've built this with Franklin Templeton, which is a 1.7 trillion dollar asset manager working with their quants to try to take this idea of owning the strongest stocks in the market and turn it from a list into an actual portfolio strategy. It's more selective than the best stocks in the markets list. Right now I have 180 stocks on my list out of the Russell 1000. We're in a bull market. That should not come as a surprise. The Porterhouse portfolio running for clients right now is only 58 names. That will flex as the market trades well or poorly, but that's around the sweet spot for a bull market. 40 names on the low end. It's got its own built-in risk management. So we don't turn winners into losers. And I think the most important thing I could share about Porterhouse is how difficult it is for stocks to make that list. You've got to have a lot of things. We're looking at the way stocks are behaving before and after they report earnings. The three days before, the three days after. We're looking at not just the uptrend, but the slope of it. We're looking at a lot of different relative metrics when you talk about strength. Well, how strong and how strong compared to other names. There's a lot that goes into that to make sure that we only own the Porterhouse cut of the market, but it's been a lot of fun developing this and clients are really into it and I appreciate everyone that came out for the launch party. It's just the beginning but so far we're having fun.
Quick clarifying point because when you were talking the verbiage up there was talking about great cash flows, great earnings, but I know you with best stocks in the market, a lot of it has to do with technicals. So is it both technicals and fundamentals?
So we want to, it's a great question. We don't want to buy the 52-week high list. We don't want to buy the 52-week high list. We don't, oh, that stock's up, buy it. We don't want to be in GameStop. We don't want to buy stocks that are rallying for mechanical reasons like short squeezes. We really want to make sure we're not only buying stocks that are trending higher and have strong technicals, but there's got to be a fundamental backdrop or else they can't get into the portfolio. It's been tried before. Obviously there's a lot of people running some sort of version of this. I think what separates ours is we're not a relative strategy. In a market that's correcting, we're going to own less stocks as time goes on because we can't fill our slots with stocks that aren't going up. That's, I think that's a really critical difference. It's not relative momentum to the rest of the market. Either these are the best stocks or they're not and we would rather hold cash in those slots waiting for new leadership to emerge.
