1 00:00:07,133 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack Team podcast 2 00:00:10,573 --> 00:00:12,893 Speaker 1: from News Talks at b It's. 3 00:00:13,013 --> 00:00:15,093 Speaker 2: A bit of a week of mixed fortunes for some 4 00:00:15,093 --> 00:00:17,773 Speaker 2: of the biggest tech companies in the world. So at 5 00:00:17,813 --> 00:00:20,933 Speaker 2: the same time as Amazon has announced it is firing 6 00:00:21,213 --> 00:00:26,213 Speaker 2: fourteen thousand people in Nvidia has become the first company 7 00:00:26,213 --> 00:00:28,813 Speaker 2: in the world to hit a market cap valuation of 8 00:00:28,973 --> 00:00:35,653 Speaker 2: five trillion dollars five thousand billion US dollars. Our textbook 9 00:00:35,653 --> 00:00:38,493 Speaker 2: Paul Stenhouse, no doubt has a big slice of that pie, 10 00:00:38,533 --> 00:00:39,693 Speaker 2: and he's with us this morning. 11 00:00:41,493 --> 00:00:43,773 Speaker 3: He has a very small slice. I will say I 12 00:00:43,853 --> 00:00:46,333 Speaker 3: was very lucky. I have got a ten teny slize 13 00:00:46,333 --> 00:00:48,053 Speaker 3: for that pie. But it has done very well. 14 00:00:48,373 --> 00:00:48,613 Speaker 2: Yeah. 15 00:00:48,853 --> 00:00:51,213 Speaker 3: I think my investment in it is up eight hundred 16 00:00:51,253 --> 00:00:53,853 Speaker 3: or nine hundred percent almost just incredible. 17 00:00:53,933 --> 00:00:56,213 Speaker 2: Yeah, okay, I mean I turned like a dollar. You 18 00:00:56,213 --> 00:00:58,653 Speaker 2: gotta sell, Paul, you gotta sell. I reckon their bubbles 19 00:00:58,653 --> 00:01:00,013 Speaker 2: pop and sometimes soon come. 20 00:00:59,933 --> 00:01:03,933 Speaker 3: On seriously, right, I mean, like so just. 21 00:01:03,373 --> 00:01:05,573 Speaker 2: Just fantastical, like just come on. 22 00:01:05,813 --> 00:01:08,213 Speaker 3: Yes, I mean we talked about this just three months 23 00:01:08,253 --> 00:01:10,213 Speaker 3: ago when it was the first company to hit four 24 00:01:10,253 --> 00:01:13,653 Speaker 3: trillion dollars, and in three months it has now hit 25 00:01:14,013 --> 00:01:17,293 Speaker 3: another trillion dollars in value, so it's a quarter up 26 00:01:17,693 --> 00:01:20,853 Speaker 3: in three months. Is just crazy. And when you start 27 00:01:20,853 --> 00:01:23,533 Speaker 3: to put some of this into perspective, it's just it's 28 00:01:23,773 --> 00:01:27,093 Speaker 3: eight point three percent of the entire sm P five hundred, 29 00:01:27,373 --> 00:01:30,813 Speaker 3: So of the five hundred largest companies that the index tracks, 30 00:01:31,013 --> 00:01:33,573 Speaker 3: it's eight point three percent of them, which means if 31 00:01:33,613 --> 00:01:35,733 Speaker 3: you're like me and hold some of those low cost 32 00:01:35,813 --> 00:01:38,813 Speaker 3: kind of index funds in your retirement account, you certainly 33 00:01:38,813 --> 00:01:41,773 Speaker 3: feel every effect, the good, the bad, the ugly when 34 00:01:41,813 --> 00:01:43,933 Speaker 3: it comes to in Vidia's market moving up and down. 35 00:01:44,573 --> 00:01:46,733 Speaker 3: But the five trillion number, Jack, I have to come 36 00:01:46,773 --> 00:01:48,013 Speaker 3: back to it. I had to do some I had 37 00:01:48,013 --> 00:01:50,813 Speaker 3: to look at some other companies to think to see 38 00:01:50,813 --> 00:01:55,733 Speaker 3: how it compares. Okay, if you take the top nine 39 00:01:55,933 --> 00:01:59,813 Speaker 3: pharmaceutical companies in the world, it is worth almost double 40 00:01:59,893 --> 00:02:04,293 Speaker 3: those top nine companies. If you take the top eight 41 00:02:04,933 --> 00:02:08,653 Speaker 3: global oil companies combine them all, it's worth about one 42 00:02:08,733 --> 00:02:12,373 Speaker 3: point five times that. Woww Lea's compare it to something 43 00:02:12,413 --> 00:02:14,853 Speaker 3: a little closer to home. How about New Zealand's government 44 00:02:14,893 --> 00:02:17,533 Speaker 3: debt of one hundred and eighty two billion, right, it 45 00:02:17,613 --> 00:02:25,093 Speaker 3: is twenty seven times greater than New Zealand's debt. There's 46 00:02:25,253 --> 00:02:27,733 Speaker 3: just a staggering number. 47 00:02:27,893 --> 00:02:31,773 Speaker 2: Yeah it is. It's crazy. It's just yeah. But I 48 00:02:31,773 --> 00:02:33,773 Speaker 2: mean one of the things you say about AI, like, 49 00:02:34,293 --> 00:02:37,453 Speaker 2: have we had the results from AI to justify this 50 00:02:37,613 --> 00:02:40,293 Speaker 2: kind of valuation for the company that makes the chips 51 00:02:40,293 --> 00:02:41,053 Speaker 2: that drives AI. 52 00:02:42,733 --> 00:02:45,573 Speaker 3: I mean no, the market would say ye. 53 00:02:45,613 --> 00:02:49,733 Speaker 2: Yes, I'm sure the market would yeah. Yeah, I don't know. 54 00:02:49,813 --> 00:02:54,573 Speaker 2: It just feels like yeah. I mean, who knows where 55 00:02:54,613 --> 00:02:56,373 Speaker 2: these things go, right, you know, we'll be sitting here 56 00:02:56,373 --> 00:02:58,013 Speaker 2: in three weeks. We could be sitting here in three 57 00:02:58,053 --> 00:03:00,613 Speaker 2: weeks saying like, wow, there's been a crazy stock market 58 00:03:00,693 --> 00:03:02,413 Speaker 2: crash and the bubbles burst. Or we could be sitting 59 00:03:02,453 --> 00:03:04,413 Speaker 2: here being market when he has become the first company 60 00:03:04,533 --> 00:03:07,533 Speaker 2: with forty to be worth seven trillion dollars. 61 00:03:08,173 --> 00:03:09,893 Speaker 3: I know. I mean it was three months ago that 62 00:03:09,933 --> 00:03:12,293 Speaker 3: it hit four. Yeah, like now it's at five. 63 00:03:12,413 --> 00:03:18,333 Speaker 2: Yeah, crazy, unreal? Okay, Oh, Amazon, fourteen thousand jobs are gone. 64 00:03:18,893 --> 00:03:19,213 Speaker 3: Yeah. 65 00:03:19,373 --> 00:03:21,053 Speaker 2: What does this mean for the state of the company 66 00:03:21,053 --> 00:03:22,173 Speaker 2: and what kind of jobs are going? 67 00:03:22,773 --> 00:03:23,013 Speaker 1: Yeah? 68 00:03:23,213 --> 00:03:27,493 Speaker 3: All corporate jobs. So this I mean they hire another 69 00:03:27,573 --> 00:03:29,973 Speaker 3: staggering number of people, something like close to a million. 70 00:03:29,733 --> 00:03:30,933 Speaker 2: People around the world or something. 71 00:03:31,253 --> 00:03:35,013 Speaker 3: Just unbelievable. That sounds like it may be too big 72 00:03:35,053 --> 00:03:38,373 Speaker 3: of a number, but anyway, huge number of people. These 73 00:03:38,413 --> 00:03:40,293 Speaker 3: are all people who work in their corporate offices. These 74 00:03:40,333 --> 00:03:42,693 Speaker 3: are desk jobs. Theres are developers, this is HR, this 75 00:03:42,853 --> 00:03:45,853 Speaker 3: is facilities, this is not people who are working in 76 00:03:45,893 --> 00:03:51,093 Speaker 3: their warehouses. Huge number of people, massive ripple effect across 77 00:03:51,133 --> 00:03:54,573 Speaker 3: just every industry. And they're not done either. The guidance 78 00:03:54,613 --> 00:03:57,413 Speaker 3: they put out was that they were going to get 79 00:03:57,533 --> 00:04:00,013 Speaker 3: rid of thirty thousand jobs. So this is fourteen So 80 00:04:00,053 --> 00:04:03,693 Speaker 3: they're expecting another sort of fourteen fifteen thousand jobs at 81 00:04:03,693 --> 00:04:06,533 Speaker 3: the start of next year. I've said that they are 82 00:04:06,533 --> 00:04:08,893 Speaker 3: trimming some of the fat from their big COVID hiring spree. 83 00:04:08,973 --> 00:04:10,533 Speaker 3: They said that they are doing some of the lean 84 00:04:10,573 --> 00:04:14,693 Speaker 3: into the AI tooling. Again, just staring numbers, right, you 85 00:04:14,773 --> 00:04:17,173 Speaker 3: let go of fourteen thousand people. The severance payments are 86 00:04:17,173 --> 00:04:21,213 Speaker 3: expected to be one point eight billion dollars. Wow. But 87 00:04:21,493 --> 00:04:24,613 Speaker 3: I mean, look, it didn't have too much of effect 88 00:04:24,773 --> 00:04:27,213 Speaker 3: on the market when they made that announcement that the 89 00:04:27,293 --> 00:04:30,893 Speaker 3: day was relatively flat. But their AWS or they did 90 00:04:30,893 --> 00:04:36,253 Speaker 3: their earnings call just yesterday, I think, and stock popped. 91 00:04:36,813 --> 00:04:41,253 Speaker 3: AWS is doing huge things. Stocks up this week seven 92 00:04:41,293 --> 00:04:46,253 Speaker 3: percent alone, So I don't think the market minds that 93 00:04:46,253 --> 00:04:49,733 Speaker 3: they just lost fourteen thousand people. But yeah, yeah, wow, wow, wow, 94 00:04:49,933 --> 00:04:51,813 Speaker 3: I think I think the feed. I don't know, if 95 00:04:51,853 --> 00:04:53,653 Speaker 3: you saw the news this week the Fed lowered interest 96 00:04:53,693 --> 00:04:57,533 Speaker 3: rates over here, then they you know, they've kind of 97 00:04:57,533 --> 00:04:59,613 Speaker 3: put out their guidance of would there be potentially another 98 00:04:59,613 --> 00:05:01,853 Speaker 3: cut before the end of the year, and they said, well, 99 00:05:01,853 --> 00:05:03,573 Speaker 3: wait and see. They saw that number and that was 100 00:05:03,573 --> 00:05:04,573 Speaker 3: a little shopping to them. 101 00:05:04,693 --> 00:05:07,373 Speaker 2: Yeah. Yeah, I'm not surprised. How very quickly done. The maths. 102 00:05:07,573 --> 00:05:10,773 Speaker 2: So five trillion, right, if you were earning a dollar 103 00:05:10,813 --> 00:05:14,973 Speaker 2: a second, right, one dollar every second, it would take 104 00:05:15,013 --> 00:05:18,213 Speaker 2: you one hundred and fifty eight thousand years to get 105 00:05:18,213 --> 00:05:18,933 Speaker 2: to five trillion. 106 00:05:19,773 --> 00:05:20,893 Speaker 3: Just incredible, not so. 107 00:05:21,213 --> 00:05:24,373 Speaker 2: Thanks so much for big number. Paul Stenhouse is our 108 00:05:24,493 --> 00:05:26,533 Speaker 2: texpert in the money by the sounds of his share 109 00:05:26,613 --> 00:05:27,613 Speaker 2: portfolio as well. 110 00:05:28,333 --> 00:05:31,453 Speaker 1: For more from Saturday Morning with Jack Tame, listen live 111 00:05:31,533 --> 00:05:34,693 Speaker 1: to News talks'd B from nine am Saturday, or follow 112 00:05:34,733 --> 00:05:36,333 Speaker 1: the podcast on iHeartRadio.