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Speaker 1: You're listening to the Saturday Morning with Jack team podcast

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Speaker 1: from News Talks at b.

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Speaker 2: Well, Microsoft has become the second company in the world

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Speaker 2: to pass the auspicious mark of having or of being

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Speaker 2: worth more than four trillion dollars. So more than four

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Speaker 2: thousand billion US dollars. You can you can say, well,

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Speaker 2: of course Microsoft was always going to get there, But

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Speaker 2: if you think about it, Microsoft has had a little

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Speaker 2: bit of a rough period. It looked like Apple was

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Speaker 2: the darling for a long time, but actually Microsoft has

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Speaker 2: leapfrogged Apple. Now here with the details is our texpert

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Speaker 2: Paul stenhousecal to Paul.

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Speaker 3: Yeah, good morning, And guess what, Jack, You just can't

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Speaker 3: guess what has pushed this company to four trillion dollars?

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Speaker 3: Can you?

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Speaker 2: Could it have anything to do with I don't know, AI?

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Speaker 2: Paul something?

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Speaker 3: Yeah, No, it's it's interesting because the you know, all

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Speaker 3: of these companies have gone into the cloud computing business,

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Speaker 3: and it's the cloud computing business for Microsoft that has

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Speaker 3: really feeled them. They had a standout quarter which really

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Speaker 3: pushed them over that four trillion dollar market cap. All

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Speaker 3: we cause this cloud computing provides compute services now for

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Speaker 3: AI that has just an hot, hot, hot demand. But

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Speaker 3: you know, you think of the time period where Google

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Speaker 3: was really sort of on the up. They'd started to

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Speaker 3: get into that desktop software type market where Microsoft was.

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Speaker 3: They started to create Google Docs, which took over from

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Speaker 3: Microsoft Word, and sheets that took over from Excel, and

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Speaker 3: people were sort of saying, you can't collaborate on Office.

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Speaker 3: It's dead. Microsoft is done. You know, Windows computers kind

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Speaker 3: of fell out of favor a little bit. Apple took

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Speaker 3: on this, you know, this this world of interconnectivity between

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Speaker 3: your MacBook and your iPhone. People were very excited about

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Speaker 3: all of that, and they thought maybe it was just

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Speaker 3: going to go the way of Yahoo and just sort

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Speaker 3: of fade off. But man, they have absolutely turned that

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Speaker 3: business around, and they now in that big cloud category

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Speaker 3: amongst the many categories they are in, but they are

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Speaker 3: now just second to aws in that cloud category. And

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Speaker 3: it's they're not going to stop spending because they see

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Speaker 3: a fosted on the earnings call. They're going to spend

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Speaker 3: thirty billion dollars on AI infrastructure in the next quarter.

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Speaker 3: So in the next three months.

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Speaker 2: Ten billion dollars a ten dollar dollars a month, So

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Speaker 2: what two and a half billion dollars a week at

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Speaker 2: the moment.

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Speaker 3: Wild, isn't it? So? Can I give you another number?

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Speaker 3: Because I think I think sometimes we forget just how

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Speaker 3: big some of these numbers are. So four trillion US dollars, okay,

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Speaker 3: would be like giving all five point three million New

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Speaker 3: Zealanders three quarters of a million US dollars, which would

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Speaker 3: be one point three million New Zealand dollars. Can you imagine,

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Speaker 3: like there is people forget You're like, oh, you know,

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Speaker 3: you know, four trillion, it's just one bigger than three

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Speaker 3: point nine. No, these are big numbers we're talking about here, people,

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Speaker 3: and it's just and it's accelerating, right. First US company

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Speaker 3: to hit one trillion was in twenty eighteen was Apple. Second, sorry,

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Speaker 3: first to hit two trillion was in twenty twenty. First

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Speaker 3: to hit three trillion was twenty twenty two, also Apple.

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Speaker 3: So by that math, they really should have hit four

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Speaker 3: trillion in twenty twenty four, but they didn't.

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Speaker 2: Okay. The absolute back of the envelope sums from me

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Speaker 2: is that it's about it's worth about eighteen times our

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Speaker 2: annual GDP. It's just ridiculous, isn't it. It's just absolutely ridiculous, Meanwhile,

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Speaker 2: Apple is not only slip behind Microsoft in terms of

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Speaker 2: in terms of the valuation of the company, but they've

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Speaker 2: announced that the tariffs are going to cost them another

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Speaker 2: billion dollars.

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Speaker 3: Yep. Note the word they're another billion dollars, because that's

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Speaker 3: on top of the hundred million dollars they've already eaten. Right,

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Speaker 3: they've just taken on this tariff cost, and that was

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Speaker 3: just during the June quarter. So they're going to spend

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Speaker 3: close to two billion bucks probably this year on tariffs,

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Speaker 3: which is just crazy. But I mean, look, look rounding

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Speaker 3: eras I guess in some ways Jack, because their quarterly

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Speaker 3: revenue jumped ten percent, ninety four billion dollars they pulled

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Speaker 3: in between April and June, and I've been trying to

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Speaker 3: really get around some of this tariff stuff. We talked

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Speaker 3: about how they charted a plane and just planes and

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Speaker 3: just sent iPhones, you know, like to the United States

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Speaker 3: as fast as they possibly could. They've tried to move

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Speaker 3: a bunch of their iPhone production to India to move

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Speaker 3: to get away from some of the China tariffs. But

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Speaker 3: Donald Trump is threatening them that if they don't start

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Speaker 3: producing phones products in the United States, he could be

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Speaker 3: slapping them with a twenty five percent tariff. So I

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Speaker 3: guess that's probably why they just decided to eat close

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Speaker 3: to two billion dollars in tariffs, because if they had

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Speaker 3: passed on to consumers, I have a feeling his eyes

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Speaker 3: may have turn the direction.

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Speaker 2: Yeah that's crazy. Hey, thank you so much, Paul, really

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Speaker 2: appreciate your time. As always, our TEXTB Paul Stenhouse there.

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Speaker 1: For more from Saturday Morning with Jack Tame. Listen live

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Speaker 1: to News Talks ed B from nine am Saturday, or

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