Podcast Summary: Chit Chat Stocks – "The State of AI Software; Tesla Robotaxi Launch: Hims & Hers vs. Novo Nordisk (TSLA, HIMS)"

Release Date: June 27, 2025

Hosts: Ryan Henderson and Brett Shafer

Guest: Braden Rhett Schaefer, Co-founder and CEO of Fiscal AI

1. Introduction

In this episode of Chit Chat Stocks, hosts Ryan Henderson and Brett Shafer delve into the evolving landscape of AI software, the recent launch of Tesla's RoboTaxi service, and a contentious legal battle between Hims & Hers and Novo Nordisk. Joined by Braden Rhett Schaefer, the co-founder and CEO of Fiscal AI, the discussion offers insightful analysis on current market trends, investment strategies, and technological disruptions.

2. The State of AI Software

a. AI Adoption Trends

Braden Rhett Schaefer provides a comprehensive overview of the AI industry's trajectory:

Braden Rhett Schaefer [04:00]: "Now 2025 here in recording feels like 1995. ... It's like you have thousands of junior level employees in the sky in a data center that work 24/7 unemotionally and unapologetically."

Braden likens the widespread adoption of AI to the personal computing boom of the mid-90s, emphasizing that AI is now integral to daily workflows across various sectors.

b. Disruptive Technologies and Impact on Jobs

The hosts discuss AI's role in automating repetitive tasks:

Brett Shafer [12:16]: "Honestly screw that work. ... Let the robots do that crap."

Brett expresses enthusiasm for AI's potential to eliminate mundane tasks, highlighting concerns about job disruptions while advocating for technological advancement.

c. AI in Investing and Equity Research

Braden touches upon AI's transformative impact on investment strategies and equity research:

Brett Shafer [21:05]: "Aggregation client communications are obviously change. ... having a really smart sparring partner with AI ... could see this being really beneficial to their career."

The conversation underscores how AI tools like Fiscal AI are revolutionizing data aggregation, analysis, and decision-making processes for investors and analysts.

3. Hims & Hers vs. Novo Nordisk Legal Battle

a. Overview of the Conflict

The hosts dissect the legal dispute between telehealth company Hims & Hers and pharmaceutical giant Novo Nordisk:

Braden Rhett Schaefer [23:26]: "Novo Nordisk abruptly ended its partnership with Hims and hers ... accused the telehealth company of illegally selling cheaper copycats of Novo Nordisk weight loss drug."

b. Impact on Hims & Hers Stock

The fallout from the lawsuit led to a dramatic stock decline:

Brett Shafer [28:05]: "If a press release from one customer can take your stock down 30% in seconds ... ask some serious questions about the validity of the business model."

The 30-40% drop in Hims & Hers' stock price reflects investor concerns over the company's legal and ethical standing.

c. Analysis and Insights

Brett and Braden analyze the sustainability of Hims & Hers' business model amidst patent disputes and potential legal repercussions, questioning the company's long-term viability against a resource-rich competitor like Novo Nordisk.

4. Constellation Software Portfolio Update

a. Brett's Investment in Constellation Software

Brett Shafer shares his substantial investment in Constellation Software, highlighting its impressive performance:

Brett Shafer [37:11]: "It's a beast of a execution. About slightly, maybe a little higher than that position."

b. Company's Performance and Stability

The company's resilience is evident through minimal drawdowns:

Ryan Henderson [38:54]: "They have never had a 25% drawdown. That is insane stable shareholder base."

Constellation Software's stable performance and strategic acquisitions make it a cornerstone of Brett's investment portfolio.

c. Market Dynamics

The discussion touches on the challenges Constellation Software faces, such as competition and dependency on its CEO, Mark Leonard:

Brett Shafer [40:39]: "If something was to happen to the company or if Mark Leonard was to move on ..."

Despite potential risks, Brett remains bullish due to the company's robust execution and strategic positioning.

5. Small Cap of the Week: Abercrombie & Fitch

a. Overview of the Turnaround Strategy

Ryan Henderson highlights Abercrombie & Fitch's successful turnaround under new leadership:

Ryan Henderson [41:31]: "They have revamped the model ... operating income per store has skyrocketed."

b. Financial Metrics and Performance

The company has shown remarkable improvement in profitability:

Ryan Henderson [43:25]: "Operating income per store ... from about $160,000 to just under a million dollars."

c. Discussion on Apparel Industry Challenges

Braden and Brett discuss the competitive nature of the apparel industry and the sustainability of Abercrombie & Fitch's recent success:

Braden Rhett Schaefer [45:56]: "It's a highly competitive industry that is getting even more competitive every year because of the Internet."

While acknowledging the company's current success, they express skepticism about the longevity of such turnarounds in the volatile fashion sector.

6. Bubble Watch

a. Footwear Startup and Space Companies' Joint Mission

The hosts humorously critique a startup's ambitious but questionable venture:

Braden Rhett Schaefer [49:02]: "It just crush all the buzzwords you can into one press release. Profit."

The episode lampoons the trend of startups overloading press releases with buzzwords to attract attention.

b. Notable Scandal involving Jane Street Capital

A significant scandal is discussed, highlighting the risks of misplaced investments:

Braden Rhett Schaefer [51:11]: "The co-founder of Jane Street Capital admitted to accidentally funding a coup to overthrow South Sudan's government."

This cautionary tale underscores the importance of due diligence in investment decisions.

7. Tesla RoboTaxi Launch

a. Deployment Details

The launch of Tesla's RoboTaxi service in downtown Austin is examined:

Braden Rhett Schaefer [52:38]: "Tesla deployed a small amount of self-driving cars in a portion of Downtown Austin ..."

b. Safety Concerns and Public Perception

An incident involving a self-driving vehicle's malfunction raises safety questions:

Ryan Henderson [53:50]: "It veered into oncoming traffic ... that's a pretty big error."

c. Investment Perspective

Brett shares his bullish stance on autonomous driving technology despite current setbacks:

Brett Shafer [54:46]: "The stats is it is more safe. And human drivers just suck ..."

They discuss the long-term potential of autonomous vehicles to revolutionize transportation and logistics, while acknowledging the challenges and public skepticism.

8. Fiscal AI Update

a. Name Change to Fiscal AI

Braden reveals the company's rebranding from FinChat to Fiscal AI, explaining the motivations:

Brett Shafer [60:18]: "Fiscal AI came up because one we thought it was a fantastic domain name ..."

b. Series A Funding

The recent capital raise underscores Fiscal AI's growth and market positioning:

Ryan Henderson [60:47]: "Fiscal AI raised $10 million."

The rebranding and funding are strategic moves to better align with Fiscal AI's expanded services and target market.

9. Conclusion

The episode concludes with a reminder of Fiscal AI's offerings and promotional discounts, followed by standard disclaimers about investment advice:

Braden Rhett Schaefer [63:14]: "Link to Fiscal AI is in the show notes ... a nice discount."

Chit Chat Stocks wraps up by encouraging listeners to engage with their platforms and stay informed on the latest market developments.

Notable Quotes:

• Brett Shafer [12:16]: "Honestly screw that work. It's going to be disruptive to people's lives and jobs."

• Braden Rhett Schaefer [04:00]: "Now 2025 here in recording feels like 1995."

• Ryan Henderson [53:50]: "It veered into oncoming traffic ... that's a pretty big error."

• Brett Shafer [21:05]: "So aggregation client communications are obviously change ..."

Key Takeaways:

• AI's Pervasive Impact: AI software has transitioned from a niche technology to a ubiquitous tool integral to various industries, mirroring the personal computing revolution.

• Legal Risks in Pharma-Health Sector: Hims & Hers faces significant challenges from Novo Nordisk, highlighting the precarious nature of partnerships and reliance on intellectual property.

• Stable Investments: Constellation Software exemplifies a robust investment with minimal volatility, driven by strategic acquisitions and strong management.

• Turnaround Success in Apparel: Abercrombie & Fitch's revival showcases the potential for recovery in struggling sectors, albeit with inherent industry risks.

• Cautionary Investment Insights: The Bubble Watch segment serves as a reminder to exercise due diligence and skepticism towards overhyped ventures.

• Autonomous Vehicles' Future: Tesla's RoboTaxi launch underscores the promising yet challenging path towards fully autonomous transportation systems.

For more insights and detailed analysis, listen to the full episode of Chit Chat Stocks on your preferred podcast platform.