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Space Exploration Technologies Corp. ($SPCX), more commonly known as "SpaceX," is down 9.92% since its IPO. Meanwhile, I invested in this company during its IPO and am up 9,679%. That’s almost a 100-bagger in less than a month's time.
How did this happen?
I really like Grok.
And Grok is the taboo wing of SpaceX’s AI and aerospace conglomerate. In fact, Grok is so controversial that SpaceX set aside $530 million for potential litigation and operational losses related to Grok's unregulated "Spicy" and "Unhinged" modes.
I think this is brilliant.
Elon Musk is famously a huge fan of the film Tropic Thunder, and there's a scene discussing how new technologies that embrace porn always win marketplace wars. HD DVD vs. Blu-ray is the example used in the film.
Grok's ability to swear, use violent language, and generate images of sexy women in bikinis and lingerie may not make it the ideal AI platform for the corporate environment, but it's extremely useful if you're in sales or entertainment.
Here's a quick example. I asked both platforms:
“Write an old school 35 word fear-based sales pitch for why a family should change their car's brakes before going on vacation. Make sure to include the car with bad brakes plummeting off a cliff and everyone dying.”
ChatGPT wrote:
“Your vacation should end with happy memories, not disaster. Worn brakes can fail when you need them most, sending your car out of control. Replace them before you gamble with your family's safety.”
Grok wrote:
“Picture your excited family heading out on vacation, cruising mountain roads with worn brakes. Suddenly they fail on a steep descent. Your car plummets off a cliff, and everyone dies. Get new brakes installed today!”
Grok's answer isn't as polished as ChatGPT's, but it goes somewhere ChatGPT can't. That gives it a unique angle over competing platforms.
In the marketing book Cashvertising, there's a discussion about how many ads dance around a buyer's actual fears and desires. The author gives the example of karate studios. Ninety-nine out of 100 will pitch themselves on "building discipline" or "improving self-confidence." The studio running the successful campaign simply asks, "Can your child defend themselves against a 250-pound rapist?"
It's an extreme example, but it's memorable.
Going back to investing, when SpaceX IPO'd, Grok went on sale with a limited-time introductory offer of $9.99 per month for three months. I bought the Grok subscription instead of the stock. The sales material it's produced, and the commissions it has helped generate, have already generated more than a 9,679% return on that initial $10.
Peter Lynch once said that good investments are often gross or taboo. His examples included funeral homes, casinos (which were then heavily associated with the mafia), pest control companies, and landfills.
I would argue that there are plenty of great investments outside the stock market that follow this same logic.
When Bitcoin traded around $5,000 in the late 2010s, sports betting was largely illegal in the United States. Yet, more than $1 trillion in black-market wagers were placed each year. Many shady offshore casinos accepted deposits and paid winnings in Bitcoin.
"A currency backed by a trillion-dollar illegal offshore gambling industry" is about as taboo a use case as you can get.
Yet an investor could have looked at the rapidly growing sports betting industry, noticed all the casinos saying, "We accept Bitcoin," and reasonably concluded that Bitcoin was likely headed much higher.
Similarly, if two of the three major AI platforms won't use harsh or taboo language, the platform that does has a unique niche.
Taboo businesses often reach saturation earlier than their mainstream counterparts or face heavy regulation once they become successful, fundamentally changing what made them valuable in the first place. But if you can identify them while they're still weird, gross, and flying under the radar, they can produce extraordinary returns.
If You Have $50k+ on Coinbase, Read This
If you're a digital asset investor with over $50k on Coinbase, this might ruin your day.
Every time you buy Bitcoin, Coinbase takes a cut. Every time you sell, Coinbase takes a cut. When you panic sell at the bottom — cut. When you FOMO buy at the top — cut.
They don't care if digital assets go to the moon or zero. They collect either way.
Visa made $36 billion last year being a middleman. Mastercard made $28 billion. PayPal made $30 billion.
Nearly $100 billion from three companies that don't produce anything — they just sit between two parties and collect.
The middleman always wins.
Tan Gera, CFA Charterholder and ex-Wall Street banker, built the ABN System — a three-phase wealth generating system inspired by BlackRock and used by 4,000+ investors.
At it’s core is fee generation.
Up market, down market, sideways — you collect regardless.
For educational purposes only. Results will vary. DM Intelligence LLC is not liable for losses.
Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.
