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Speaker 2: All right, well, investors definitely want shares of Microsoft in
Speaker 2: a big way. It's unbelievable, maybe not unbelievable considering the
Speaker 2: quarter that they just came out with Microsoft, as you know,
Speaker 2: we broke their earnings last night. They are top in
Speaker 2: the S and P five hundred and Nasdaq one hundred,
Speaker 2: stock at its highest level in more than a year.
Speaker 2: Air adding and my numbers may be a little bit
Speaker 2: off a little bit, but as a latest measure, a
Speaker 2: record one hundred and fifty one billion in value. And
Speaker 2: that's despite the UK blocking a sixty nine billion dollar
Speaker 2: Activision deal acquisition of Activision. So let's continue our coverage
Speaker 2: of the tech giant. Bloomberg Intelligence Senior Technology analyst anarrag
Speaker 2: Rana is back in our Bloomberg Interactive Brokers studio. Narag
Speaker 2: a lot. It was twenty four hours since we got
Speaker 2: their results. Anything changing in your thinking about the results
Speaker 2: we got.
Speaker 3: No, I mean it was surprisingly last night. It's still
Speaker 3: surprising how they pulled it off, especially when they guided
Speaker 3: just two months ago to grow six percent in constant
Speaker 3: currency and they beat it by four hundred or four percent.
Speaker 3: Then you know, came at ten percent, So it is surprising.
Speaker 3: It is good. They're executing well and you know, let's
Speaker 3: help this continues.
Speaker 4: And I wonder to what extent and the Microsoft story,
Speaker 4: you see this as a win for them when it
Speaker 4: comes to the AI race. Did the earnings yesterday?
Speaker 3: No? No, no, no, that's too early in the game.
Speaker 3: It's not going to add to anything meaningful for years
Speaker 3: to come. This is your regular bread and butter business,
Speaker 3: you know, PC sales, office cloud being not as bad
Speaker 3: as we thought it would be. So it is, as
Speaker 3: I would say, very little to no contribution from new
Speaker 3: workloads from AI.
Speaker 2: Yeah, it's interesting, right, We've all been to ecstatic over Microsoft,
Speaker 2: in particular because of what it's been saying about AI.
Speaker 2: But when it really comes to it, it was cloud
Speaker 2: and just kind of the core business at Microsoft that
Speaker 2: just did so well. What do you make though of
Speaker 2: a company when you say it was just a few
Speaker 2: months ago they came out with one estimate right or
Speaker 2: forecast and then all of a sudden they just blow
Speaker 2: it out, like what is that? Just how it sometimes
Speaker 2: plays out?
Speaker 3: It does, and it's the narrative because remember Microsoft is
Speaker 3: such a big part of the software world that anything
Speaker 3: it says has a big you know meaning for read
Speaker 3: through for other companies. I mean, look at some of
Speaker 3: the other companies today. Look at Snowflake, Data Dog, you know, Mango,
Speaker 3: deb They're all rushing because these are the guys who
Speaker 3: say that, okay, enterprises are still spending on some of
Speaker 3: their products and things are not getting worse. I think
Speaker 3: things are not getting worse. Is to me is the
Speaker 3: big movement because you know, the banks being blowing up.
Speaker 3: Banks spent quite a bit of money on technology. This
Speaker 3: shows me that the need to be digital is superseding,
Speaker 3: you know, some short complex in funding.
Speaker 2: I wonder if, like when they gave out that for cast,
Speaker 2: was that I'm trying to think of where we were
Speaker 2: in terms of like what the FED was going to do.
Speaker 2: Was it because they thought the FED was going to
Speaker 2: be a lot more aggressive and slow down the economy.
Speaker 3: I don't think it's they go by that method. I mean,
Speaker 3: they look at the backlock. They think they look at
Speaker 3: what the orders are coming in, and they look at
Speaker 3: what you know, people are turning things off, and they
Speaker 3: give their best estimate at that point. But to go
Speaker 3: from six to ten was pretty commendable to me.
Speaker 2: Yeah.
Speaker 4: On the PC side that you were mentioning earlier, we've
Speaker 4: been talking a lot about like the smaller names, like
Speaker 4: the Seagates of the world sort of being an indicator
Speaker 4: of a slowdown in demand.
Speaker 5: Are you concerned about that? When it comes to the
Speaker 5: Microsoft story.
Speaker 3: In the Microsoft study, there are two things, consumer and commercial.
Speaker 3: The consumer was still weak. That has been the case,
Speaker 3: and then that probably flows through for other vendors. In
Speaker 3: the case of commercial PCs, which is companies upgrading their
Speaker 3: PC that goes by a cycle that typically does not
Speaker 3: you know, a factor in the in your normal day
Speaker 3: to day that consumer spending is week. So companies won't upgrade,
Speaker 3: it doesn't happen. They go by their own methodology. If
Speaker 3: the computers are old, they go out and you know,
Speaker 3: I would say upgraded. Sometimes they push it out by
Speaker 3: I would say six months to nine months. But I
Speaker 3: mean those numbers were actually pretty good.
Speaker 4: So that's not like an economic indicator at all, okay.
Speaker 2: Well, we talk about the bell weathers right within a sector,
Speaker 2: and I do wonder how you extrapolate out what we
Speaker 2: got from Microsoft and what it tells us about the
Speaker 2: broader business spend on it.
Speaker 3: No, you see, we'll have another company report tonight service.
Speaker 3: Now we'll have Amazon tomorrow night. So I think there
Speaker 3: are other companies that will show. Now it's possible Microsoft
Speaker 3: executed better than others, but I doubt that it's such.
Speaker 3: As I said, it's such a big portion of overall
Speaker 3: software spend. I think this just shows to me that,
Speaker 3: you know, we are probably hitting the low watermark at
Speaker 3: this time, and maybe it's time for a u turn
Speaker 3: in terms of technology spending.
Speaker 2: Interesting. You know, it's funny yesterday we were kind of
Speaker 2: musing about Microsoft under Bomber versus Microsoft under Nadella. I mean,
Speaker 2: it's a different company.
Speaker 3: A very different company. It's it's day and night. You know.
Speaker 3: It was open source was an evil word in the
Speaker 3: days of you know, Steve Bomber, and Nadella has embraced
Speaker 3: it quite a bit, you know, working with rivals, trying
Speaker 3: to recognize that if you're not good in certain things,
Speaker 3: walk out of it. He walked out of the Nokia deal,
Speaker 3: Bomber went ahead and you know bought no. Okay, so
Speaker 3: it's a it's a completely different view when it comes
Speaker 3: to to to the new Microsoft.
Speaker 4: And speaking of deals, I would love to get your
Speaker 4: take on the Activision situation, the acquisition getting shut down
Speaker 4: in the UK, and you know.
Speaker 3: Our expert generly has talked a lot about it and
Speaker 3: this is not you know, in the four years ago
Speaker 3: this would have been not an issue. But the economic
Speaker 3: and political climate is so different today that you know
Speaker 3: they are they will block anything by big tech at
Speaker 3: this point.
Speaker 2: So okay, we know Microsoft's already appealed it.
Speaker 3: I mean, Didjetjen say is going to take a long time?
Speaker 2: It's going to take a long time. Is it a
Speaker 2: case where I think there's a three billion dollar breakup
Speaker 2: fee that if Microsoft walks away from it? Is it
Speaker 2: likely Microsoft will or it will just write it out.
Speaker 3: I think they will just keep on appealing till they
Speaker 3: figure it out.
Speaker 2: Do they need it?
Speaker 6: Though?
Speaker 2: Like tell me in terms of strategy what does it
Speaker 2: mean for future growth?
Speaker 3: Gaming is a big part of it, and like other
Speaker 3: areas such as let's say streaming, you know, content is
Speaker 3: a very big important piece of it in this case,
Speaker 3: in the case of gaming, you do want to make
Speaker 3: sure you have the best games possible, and they have
Speaker 3: said that they will allow it on other platforms as well,
Speaker 3: but I think that's still met with skepticism. And if
Speaker 3: someday in the future Microsoft wants to get into cloud gaming,
Speaker 3: you know it would I'm sure would want to have
Speaker 3: a lot of those digital assets with it that it
Speaker 3: can offer those games.
Speaker 2: Is that why it's not really an overhang on the
Speaker 2: stack today because it's like, okay, this is going to
Speaker 2: be drawn out or it's I mean, was it an
Speaker 2: over I don't think I really so.
Speaker 3: Initially it went up by nine percent, eight percent. Now
Speaker 3: it's up to seven percent, maybe one percent up and down.
Speaker 3: But again, you know, Microsoft is a company that has
Speaker 3: six or seven things working for them. It's not dependent
Speaker 3: on any one particular product or segment for growth. This AI,
Speaker 3: for example, that just came out in the last six months,
Speaker 3: one could argue three years from now, it's going to
Speaker 3: drive growth a lot more than you know, perhaps even
Speaker 3: gaming now, you know, it's difficult to measure that, but
Speaker 3: this is one company that's investing in the right kind
Speaker 3: of R and D and it's getting really good results.
Speaker 2: What I'm wondering is Amazon, is we know cloud also
Speaker 2: important obviously to that company. Is there something that we
Speaker 2: can glean from what we got from Microsoft and what
Speaker 2: it means for Amazon?
Speaker 3: It should be fine.
Speaker 2: It should be fine.
Speaker 3: But once again, Amazon's far more exposed to startups and
Speaker 3: new companies than Microsoft, which has a big portfolio of
Speaker 3: legacy or older companies like you know, City Bank, Pepsi,
Speaker 3: Coca Cola, et cetera. While Amazon has more of you know,
Speaker 3: the ubers and the and the startups. So Amazon may
Speaker 3: be exposed a little bit more, but I think it,
Speaker 3: you know, maybe it's fine.
Speaker 4: Some of our guests have been calling AI the iPhone
Speaker 4: moment of this era, and it would seem that Microsoft
Speaker 4: is the Apple then, right, do you agree with that?
Speaker 5: I feel like you don't see it.
Speaker 3: It's like somebody asking me about metaverse a year and
Speaker 3: a half ago. I need to see the results before
Speaker 3: I get excited. I am a financial anandlist need to
Speaker 3: see the numbers. It's a Philosophically, from a concept point
Speaker 3: of view, it's very good. I have no doubt that
Speaker 3: this is really a very game changing moment for the
Speaker 3: entire world in some form or shape. But now, how
Speaker 3: long does it take to become mainstream? Is going to
Speaker 3: be a you know, it could take years.
Speaker 2: Frankly, you know aneric that's so interesting. Do you put
Speaker 2: it on the same plane as a metaverse or is
Speaker 2: it something a little bit more constructive and more developed.
Speaker 3: I will tell you five to seven years ago I
Speaker 3: wrote a piece on this thing, how AI can change
Speaker 3: the world. It's just that's happening at a much faster paced.
Speaker 2: Generative AI specific or just aiah.
Speaker 3: And again, IBM was a big deal at that time.
Speaker 3: IBM was doing a lot of those similar things, and
Speaker 3: you know, it just could not expand and got acceptance.
Speaker 3: At that point, it bought Weather Company, it bought a
Speaker 3: couple of other companies that looked at images. Watson Health
Speaker 3: was a big deal. I've played around with it. Such
Speaker 3: a phenomenal product, but it never took off.
Speaker 4: Right, You can't really argue with the uptake and use
Speaker 4: of something like chat GBT versus the use of the metaverse.
Speaker 3: It's night day, true, But at the same time, the
Speaker 3: real money is going to be made from enterprise use
Speaker 3: companies when they expand into a product like that. But
Speaker 3: they have to then dive into their own data. They
Speaker 3: have to clean up that data that could take us.
Speaker 3: This is not as simple to monetize as you know
Speaker 3: people are making out to be.
Speaker 2: Does it ultimately anerog play out, just like we have
Speaker 2: a couple of really big we have a lot of
Speaker 2: people in the cloud, but we have a couple of
Speaker 2: really big players. Is that how this, you know, next
Speaker 2: level AI plays out? Or you're going to have a
Speaker 2: lot of hands in it.
Speaker 3: So the software is going to be used, could be
Speaker 3: used by anybody. It's up to you. If you want
Speaker 3: to make an application, you can create one and it
Speaker 3: could do wonders. You know, it could be a grocery store,
Speaker 3: if be deployed anywhere, healthcare industry. But at the end
Speaker 3: of the day, we think the biggest beneficiaries are going
Speaker 3: to be the three or the four biggest cloud providers
Speaker 3: because this infrastructure has to be built on cloud. So Amazon, Google, Microsoft.
Speaker 2: Don't care who's doing it.
Speaker 3: Well as long as say, if you're a company and
Speaker 3: you want to spend some money and create an application,
Speaker 3: yeah you can go out and make it.
Speaker 2: Last question twenty fe seconds. Was there anything on the
Speaker 2: call that wasn't answered to your.
Speaker 3: Now, Yeah, it's just surprising you're on the positive side.
Speaker 2: It is amazing, so great to check in with you again.
Speaker 2: I'm not even sure if you got any sleep. Did
Speaker 2: you get any sleep?
Speaker 6: No?
Speaker 2: We so appreciate honor our Grana, our senior technology analyst
Speaker 2: here at our Bloomberg Intelligence team, our in house group
Speaker 2: of analysts.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
Speaker 1: live weekday afternoons from three to six Eastern Listen on
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Speaker 2: Hey, we're keeping an eye on shares of Tesla as well,
Speaker 2: stock down about three and a half percent just off
Speaker 2: their lows, and they have backtracked nearly twenty five percent
Speaker 2: since March thirty. First, we continue to see Elon continuing
Speaker 2: to shape strategy that includes betting the house on low
Speaker 2: prices and razor thin margin. So this story is today's
Speaker 2: Bloomberg Big Take. It's also the upcoming new issue of
Speaker 2: Bloomberg Business Week on newsstands later on this week tomorrow.
Speaker 2: In fact, already online at Blomberg dot com slash Business
Speaker 2: Weekend on the Bloomberg terminals. So let's get to it.
Speaker 2: Let's get to Bloomberg News. Globals are cars are Craig Trudell,
Speaker 2: he's on the phone in London, Craig. Good to have
Speaker 2: you here with us. So, yeah, it does feel like
Speaker 2: every day we come in and there's either another price
Speaker 2: cut or some kind of price move from Elon. Tell
Speaker 2: us a little bit about your story in this strategy
Speaker 2: of mister Musk's.
Speaker 7: Yeah, well, we'll see if I wake up to another
Speaker 7: one overnight, it's going to be right in the middle
Speaker 7: of as I'm sleeping. So, I mean, this has been
Speaker 7: a story of just yeah, relentless cutting all year long,
Speaker 7: and we really started to see hints of it even
Speaker 7: late last year, you know, whether there were there were
Speaker 7: some cuts in China or some incentive offers in the US.
Speaker 7: But in the end, we're now to a point where
Speaker 7: where it cast us almost a third less to buy
Speaker 7: a model why now than it did just a little
Speaker 7: over three months ago. And this is just something that
Speaker 7: we haven't seen before, right, It's it's not a model
Speaker 7: that you know, is is really uh you know, low
Speaker 7: low volume or or has been in this you know,
Speaker 7: market decline. If anything. It's been their strongest model, and
Speaker 7: it's potentially I mean, it could end up being the
Speaker 7: best selling vehicle in the world this year.
Speaker 3: Uh.
Speaker 7: And yet it's a case of adding a heck of
Speaker 7: a lot of capacity very quickly. Uh and and the
Speaker 7: model itself, uh you know, going into that process being
Speaker 7: quite high price, being high volume. Uh and yet with
Speaker 7: all that capacity coming online and real changes in the
Speaker 7: sort of supply demand dynamics for the broader industry, you know,
Speaker 7: all all of those things have sort of combined to also,
Speaker 7: I guess adding a CEO who is sort of prone
Speaker 7: to making very sort of sudden changes, and boom, you
Speaker 7: get yourself. You know, these these massive uh you know,
Speaker 7: price cuts in the last few months.
Speaker 5: Craig, does it work for the company?
Speaker 7: I think that's that's a question that's really difficult to
Speaker 7: answer because you have, you know, really smart piece people
Speaker 7: who come to just radically different conclusions where you know,
Speaker 7: some some will tell you it's desperation and some will
Speaker 7: tell you it's just disruption, and you may even actually
Speaker 7: hear it, you know, hints of that in the in
Speaker 7: the same answer from the same person. And I allude
Speaker 7: there to Jim Harley the CEO of Ford. He's talked about,
Speaker 7: you know, just last week, you know, he told reporters
Speaker 7: look up nineteen thirteen and he was referring, of course
Speaker 7: to Henry Ford and the Model T and how quickly
Speaker 7: Henry Ford dropped the price of that car when he
Speaker 7: sort of had an edge on the rest of the
Speaker 7: industry and had, you know, innovated with the moving assembly line.
Speaker 7: I think, you know, Musk thinks that he's pressing an
Speaker 7: advantage here, but I also don't think that you cut
Speaker 7: your prices that much that quickly from a position of
Speaker 7: absolute strength. It's clear that he's, you know, to some degree,
Speaker 7: been pushing on a string here.
Speaker 2: What I do wonder, you know, is this about forgive
Speaker 2: me going after the masses more easily? Because these cars
Speaker 2: have been even the low and pretty expensive.
Speaker 7: Yeah, I mean just last year, I mean you had
Speaker 7: to pay sixty five thousand dollars plus for a Model Ye,
Speaker 7: this was not a cheap vehicle. It's now to the
Speaker 7: point where you can you can get it in the
Speaker 7: mid forties. And that's you know, something that we haven't
Speaker 7: seen before, where you know that that vehicle was not
Speaker 7: anywhere close to what the average transaction price was in
Speaker 7: the US and now it's slightly below it. And so
Speaker 7: we've seen that change. It's been about twenty thousand dollars,
Speaker 7: you know, change in the differential. Our colleague Tom Randall
Speaker 7: had a great story on this yesterday. Just he's been
Speaker 7: very closely following those numbers. So you know, it absolutely
Speaker 7: is the case that he's unlocking, you know, a greater market.
Speaker 7: But you know, to what extent is he able to
Speaker 7: sustain the Model three, which is is you know, older,
Speaker 7: and then you have a sort of very different story
Speaker 7: with the Model S and the Model X, which are
Speaker 7: are very old and really having a hard time.
Speaker 2: You know, it's interesting what I I thought your story
Speaker 2: and you took us back to the Rick Wagner days
Speaker 2: at General Motors when he was CEO. Do you think
Speaker 2: it's fair like to share with our audience, you know,
Speaker 2: that comparison. But I do wonder is it fair to
Speaker 2: make that comparison, because I would say that it's kind
Speaker 2: of it feels a little different.
Speaker 7: Oh, it's it's definitely different. I do think that the
Speaker 7: sort of similarity there is, you know, a story of
Speaker 7: a company that has a heck of a lot of
Speaker 7: capacity and has to make some difficult decisions when you
Speaker 7: know it's having trouble getting demand for the capacity that
Speaker 7: it has. I think the comparisons maybe due, you know,
Speaker 7: to your point and there, and I think there's a
Speaker 7: great chart in our story today capturing what's happened to
Speaker 7: the cash and the debt on Tesla's balance sheet. We saw,
Speaker 7: you know, in twenty nineteen and twenty twenty, Tesla raise
Speaker 7: a ton of money from Wall Street and in the
Speaker 7: last few years has itself you know, added to its
Speaker 7: cash balance, you know, from its own operations. And in
Speaker 7: the process it's it's also paid off about you know,
Speaker 7: ten billion, ten billion dollars worth of debt in the
Speaker 7: course of three years. And that's why, you know, just
Speaker 7: recently we saw Moody's raise Tesla to investment grate.
Speaker 2: So it's a great chart. It's how you want it
Speaker 2: to be.
Speaker 7: Yeah, it's Tesla in a structural state anywhere close to
Speaker 7: where GM was. Absolutely not. But I do think you know,
Speaker 7: the sort of you know, it's funny, we we sort
Speaker 7: of thought that Tesla was something different and not like
Speaker 7: other sort of old line carmakers. But you know, this
Speaker 7: idea of of sort of as we saw in two
Speaker 7: thousand and one, you know, just sort of resorting to
Speaker 7: discounting to sort of move the metal. It definitely brings
Speaker 7: you know, it sounds familiar there.
Speaker 4: So why aren't they pouring that money into generating freshness?
Speaker 4: Which I'm stealing from one of your sources. But Carol
Speaker 4: and I get a lot of our best ideas, or
Speaker 4: I do, at least from the makeup room. And what
Speaker 4: they always talk about is the lack of availability of
Speaker 4: different colors of Tesla's. I know that sounds silly, but
Speaker 4: is something like that on Elon Musk's mind.
Speaker 7: It's a good question. I mean, I don't think that
Speaker 7: they've really sort of, you know, talked a whole lot about,
Speaker 7: you know, significant changes to the product. And of course
Speaker 7: you always sort of run the risk when you sort of,
Speaker 7: you know, dangle this sort of next thing that you
Speaker 7: sort of have the consumer wait for the changes to come.
Speaker 7: And we may be seeing that a little bit. I
Speaker 7: think there's been reports recently that the Model why and
Speaker 7: the Model three are going to undergo some upgrades fairly soon,
Speaker 7: and so are we seeing some consumers hold back and
Speaker 7: wait for the pressure models? I think another fair question
Speaker 7: to raise here is. You know, if you're a consumer,
Speaker 7: why the heck would you want to buy a Tesla
Speaker 7: right now when when the prices are coming down so quickly?
Speaker 7: You know, why not wait a little bit more and
Speaker 7: see if these prices sort of settle down a little
Speaker 7: bit before you, you know, go out of and purchase
Speaker 7: something that you know, a few weeks later, might you
Speaker 7: know the price may depreciate another two thousand dollars, we'll
Speaker 7: go up.
Speaker 2: I'm just going to say there's a flip side, no Eli, Hey,
Speaker 2: I just I am curious, Craig, is Tesla going to
Speaker 2: be like any other carmaker though that like every year
Speaker 2: there's a new model. It doesn't feel like, you know,
Speaker 2: Elin just does it so differently. Should we expect as
Speaker 2: consumers that that's how he's going to do it? Or
Speaker 2: is it going to be I don't know akin to
Speaker 2: I mean Apple watches, I mean, or something that come
Speaker 2: out every few years. I mean, how do we you know,
Speaker 2: how do we think about that when it comes to Tesla?
Speaker 7: I think I think absolutely that's a that's an observation
Speaker 7: that you know, he has very much sort of bet
Speaker 7: on this idea that I don't need to sort of
Speaker 7: regularly do these redesigns the way the industry has been
Speaker 7: been doing for a long time. I can make these
Speaker 7: incremental improvements to my product with software, and to his credit,
Speaker 7: he's done that in a way that I don't think.
Speaker 7: You know, the incumbents are still caught up in terms
Speaker 7: of the over the air update capability that Teslas have,
Speaker 7: and it's still an edge that Tesla has over the
Speaker 7: rest of the industry.
Speaker 6: Right.
Speaker 7: But that being said, I do think that, you know,
Speaker 7: the consumer has been sort of trained over the years
Speaker 7: to expect, you know, this model will at least get
Speaker 7: you know, a bit of a freshening up, you know,
Speaker 7: a bit of a nose job on it, something to
Speaker 7: get me excited.
Speaker 6: You know.
Speaker 7: They did try to do that with the Model S
Speaker 7: and X a couple of years back. Yeah, it just
Speaker 7: didn't really go over that well.
Speaker 2: I love I don't know, I'd love to like not
Speaker 2: have to keep replacing things. It kind of works for me.
Speaker 2: Craig Trudell, great story, Thanks for hanging up Later there
Speaker 2: over in London, Craig is Global Cars are here at
Speaker 2: Bloomberg News. He is joining us on the phone from London.
Speaker 2: That story, by the way in the upcoming new issue
Speaker 2: of Bloomberg Business Week on newstands tomorrow. Already at Bloomberg
Speaker 2: dot com slash BUSINESSWEEKND on the Bloomberg Terminal.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 2: All right, everybody, it's four oh nine on Wall Street,
Speaker 2: and we've got a slew of earnings. We still are
Speaker 2: awaiting Meta, so as soon as they cross the Bloomberg
Speaker 2: terminal will bring them to you. Service now is just crossing,
Speaker 2: and I just want to do a quick break on that.
Speaker 2: Certainly playing into here's meta. Let's go to that. Actually
Speaker 2: Meta is crossing the Bloomberg terminal, and let's go to
Speaker 2: first quarter EPs to twenty a share that is nineteen
Speaker 2: cents better than what the street was expecting. First quotter
Speaker 2: revenue is twenty eight point sixty five billion. That two
Speaker 2: is better. The street was looking for twenty seven point
Speaker 2: sixty seven billion to the forecast meta platform see second
Speaker 2: quarter revenue of twenty nine point five billion to thirty
Speaker 2: two billion. The estimate is twenty nine point forty eight,
Speaker 2: so it's raising it to the upside. Quick check on
Speaker 2: what the stock is doing in the after hour, especially
Speaker 2: on that upbeat outlooks Stuck is up almost nine percent
Speaker 2: here in the after hours, So that is a big deal.
Speaker 2: First quarter advertising revenue, big reason in terms of top
Speaker 2: line growth here twenty eight point ten billion. That's a
Speaker 2: beat the street was looking for twenty six point seventy
Speaker 2: six billion. And then you get into certainly Facebook daily
Speaker 2: active users two point zero four billion, Mattie, that is
Speaker 2: better than what the street was expecting just by a.
Speaker 4: Hair And it's really critical to look at that Facebook
Speaker 4: advertising recovery because that was going to be one of
Speaker 4: the key pieces to watch.
Speaker 5: The other thing that I'm really interested in seeing.
Speaker 4: Is how Zuckerberg when it comes to the earnings call,
Speaker 4: looks at the meta versus metaverse versus AI conversation, because
Speaker 4: we know that that's going to be a tight rope
Speaker 4: for him to walk well.
Speaker 2: First quarter Reality loves revenue right, that plays into virtual reality,
Speaker 2: augmented reality three hundred and thirty nine million. That's a miss.
Speaker 2: The estimate was for six hundred and thirteen point one million.
Speaker 2: Again small part of the business, but this is a
Speaker 2: lot of what it talks about. When it comes to
Speaker 2: the future. We want to bring in our guests and
Speaker 2: we'll continue to track these earnings. Do you also want
Speaker 2: to mention that the outlook from Meta includes three to
Speaker 2: five billion dollars worth of restructuring costs, and it's talking
Speaker 2: about fiscal year total expenses of eighty six to ninety billion.
Speaker 2: It had seen eighty six to ninety two, so raining
Speaker 2: in at least the top end of that. Lucky for
Speaker 2: us with us as James Chockmack, he's partner technology analyst
Speaker 2: over at Clockwise Capital. He's with us on zoom from Miami. James,
Speaker 2: nice to have you here with Maddie and myself. So
Speaker 2: let's get to it. In terms of Meta stock is
Speaker 2: up in the after hours. How do you see it?
Speaker 8: Well, we're really glad with the result given to one
Speaker 8: of our thoughts. Ye relations, so happy for us and
Speaker 8: having for our clients. Latian said, you know, this is
Speaker 8: a company that took the bull by the horns when
Speaker 8: it came to getting religion on the cost side. And
Speaker 8: I think as we anniversaried in January the advertising changes
Speaker 8: at Apple. You know, the setup was pretty well for
Speaker 8: the year.
Speaker 7: Now.
Speaker 8: Really the question for us is the only remaining uncertainty
Speaker 8: this relates to the metastory, is what is the degree
Speaker 8: of the recession? What is the depth of the recession,
Speaker 8: and how does that impact discretionary i'd spend. So fundamentally speaking,
Speaker 8: it's everything is moving in the right direction. But you know,
Speaker 8: just what we potentially see softwas in the numbers in
Speaker 8: the second half. But ye overall, you know, it's we're
Speaker 8: pleased with the results and context.
Speaker 2: Right those first quarters sales, as we said, up to
Speaker 2: twenty eight point six billion, that's a return to growth
Speaker 2: after three straight quarters of declines. That's that's a good
Speaker 2: thing because the trend line in the other direction wasn't
Speaker 2: so good.
Speaker 6: Yeah.
Speaker 8: Absolutely, I mean last year was a very difficult year
Speaker 8: for them. I mean they had to navigate and recalibrate
Speaker 8: for the new world that they were deally with in
Speaker 8: terms of how they can capture measurement and how they
Speaker 8: can capitalize on the data that they collect and help
Speaker 8: the advertisers and that they serve. That was a difficult
Speaker 8: task and it took the better part of a year
Speaker 8: to get it right. Obviously, at the same time, there's
Speaker 8: under monetized assets like reels, and then you know, like
Speaker 8: I said, getting religion on the cost site is what
Speaker 8: it comes down to. We did trim, you know, this
Speaker 8: was over a ten percent position heading into the quarter.
Speaker 8: We did trim a little bit heading into the print today,
Speaker 8: just you know, just because you know, this market is
Speaker 8: slightly fragile, but at the end of the day, and
Speaker 8: also the buyside expectations we're getting a little lofty. But
Speaker 8: at the end of the day, this is a stock
Speaker 8: that's trading at about twenty times earnings, not that egregious
Speaker 8: of a multiple, and the opportunity for the top line
Speaker 8: to you know, to remain at healthy levels for the
Speaker 8: foreseeable future.
Speaker 4: Quick question on meta when it comes to Facebook Reality Labs,
Speaker 4: because a little bit of a of realism. They're the
Speaker 4: first quarter sales missing expectations, and that's kind of critical
Speaker 4: to watch because the metaverse is so core to Mark's
Speaker 4: vision for the company moving forward. Does that concern you
Speaker 4: at all in terms of where Zuckerberg may be most
Speaker 4: interested in pouring resources into the company moving forward.
Speaker 8: It will concern me potentially in the future at this juncture,
Speaker 8: not yet, because we have a pretty healthy view of
Speaker 8: what the earnings picture is going to be for this
Speaker 8: year and next year. Now, if that spend gets out
Speaker 8: of control where we have to temper those expectations, then
Speaker 8: the calculus would definitely change. But at this point, as
Speaker 8: long as you know we're performing along that trend line
Speaker 8: of earnings growth that we predict, I think it's okay.
Speaker 2: You know, I'm just looking at the press release to
Speaker 2: James and Mark Zuckerberg is saying, of course, he's a
Speaker 2: Meta founder and CEO. He said, we had a good
Speaker 2: quarter and our community continues to grow. Our AI work
Speaker 2: is driving good results across our apps and business. We're
Speaker 2: also becoming more efficient so we can build better products
Speaker 2: and put ourselves in a stronger position to deliver our
Speaker 2: long term vision. That long term vision is the metaverse, right,
Speaker 2: and this is the year of efficiency. So it uses
Speaker 2: the word efficient again. I mean, this is what's kind
Speaker 2: of driving this company. I mean, is it strategy? Is
Speaker 2: it cutting costs? I mean, how do you see it?
Speaker 8: I mean the way we're investing, is we want to
Speaker 8: invest in companies that have the best possible control over
Speaker 8: their own destiny. There's so much noise in the market
Speaker 8: right now, everything that's happening in the financial markets, what's
Speaker 8: going to happen with demand, recession, banks, and whatnot. You know,
Speaker 8: which companies have the most control over their destiny? And
Speaker 8: the META and Zuckerberg at the HELM seems to be
Speaker 8: acknowledging that and working toward optimizing and maximizing the potential
Speaker 8: of what they can from the aspects of their business
Speaker 8: that they can control. So long as demand and the
Speaker 8: economy stays relatively constant. From where we are, you know
Speaker 8: that they have even more control over their numbers for
Speaker 8: the next year or two. I mean, some of the
Speaker 8: buyside expectations have creeped up the seventeen eighteen dollars per
Speaker 8: share in earnings estimates for next year, which is actually
Speaker 8: north of where we are. So that's why we were
Speaker 8: a little cautious.
Speaker 4: Really quickly here, really quickly, we about twenty seconds one
Speaker 4: percent head count decrease for META. Are you concerned at
Speaker 4: all that they're not going to be able to maintain
Speaker 4: those cost cutting measures heading into the rest of this year?
Speaker 2: Real quickly.
Speaker 8: I mean at this juncture, no, I think we'll see
Speaker 8: what happens. But ultimately, as long as it performs along
Speaker 8: the trend lines that we have predicted for the time being,
Speaker 8: I think all will be all right.
Speaker 2: Listen, Hey, thanks, and thanks for your patients as we
Speaker 2: work through those Meta numbers, which kind of came in
Speaker 2: a little bit late at least in terms of what
Speaker 2: we were expecting. James, Thanks, James Chockmack. He's partner in
Speaker 2: technology analyst over at Clockwise Capital on Zoom from Miami.
Speaker 2: We are seeing shares of Meta. They're rallying in the aftermarket,
Speaker 2: up about seven percent.
Speaker 1: This is Bloomberg Business Wait inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine plus
Speaker 1: global business finance and tech news the Bloomberg Business Week
Speaker 1: podcast with Carol Messer and Tim Stenebek from Bloomberg Radio.
Speaker 2: Right now, we want to get to some of the
Speaker 2: trends that are going on in the workforce. We're kind
Speaker 2: of counting down not only to a FED meeting, but
Speaker 2: our next read when it comes to the labor market,
Speaker 2: and with us is Emma Cod of Deloitte. She's a
Speaker 2: Global Inclusion Leader, and they did a survey that looked
Speaker 2: at they do an annual report on women specifically. It's
Speaker 2: out today, and what they found. One of the findings
Speaker 2: one out of five women surveyed have left their employer
Speaker 2: in the past twelve months. That's a pretty big statistic.
Speaker 2: So let's get to it and get some understanding of
Speaker 2: who they talk to and more on the findings that
Speaker 2: Emma joins us here in our Bloomberg Interactive Broker studio.
Speaker 2: Great to have you here. I do feel like this
Speaker 2: is very indicative of our times post pandemic.
Speaker 9: Welcome, thank you, great to be here.
Speaker 2: Nice to have you here. So tell us little bit
Speaker 2: about who you surveyed specific So.
Speaker 9: We surveyed five thousand women in the workplace across ten countries,
Speaker 9: really to try and get a good global outlook, so
Speaker 9: you know, European countries, it's sort of over to Asia,
Speaker 9: Latin America, so really a good represent sample and the
Speaker 9: affectively women in work in roles, in jobs, eighty eight
Speaker 9: percent of them were in full time employment. And that's
Speaker 9: actually interesting when we come on to the flexible working findings,
Speaker 9: because I would say some of those would rather be
Speaker 9: in part time employment, right, but given some of the
Speaker 9: issues that we've identified, they're not working full time. And
Speaker 9: the aim for this research, as you said, this our
Speaker 9: third year, is really to understand it's less about policies,
Speaker 9: less about processes, to understand women's real experiences and actually
Speaker 9: to come you know, what is the secret source come
Speaker 9: up with the recommendations that businesses can use because we're
Speaker 9: not making enough progress.
Speaker 4: So what was the main thing then for businesses?
Speaker 5: In terms of a takeaway?
Speaker 9: I would say, look, there are a couple of main
Speaker 9: takeaways things that really actually concerned me. Last year, we
Speaker 9: saw very high numbers around burnout, around exclusion during hybrid,
Speaker 9: working around non inclusive behaviors, and I do think that
Speaker 9: was partly a sign of the times we're in this
Speaker 9: weird sort of coming back to work slowly, and we
Speaker 9: were you know what we've been through the last couple
Speaker 9: of years. This year, those numbers have come down, but
Speaker 9: I want to really emphasize they're not good, that they're
Speaker 9: still poor. So specific you look at mental health, mental health,
Speaker 9: more women are feeling very stressed. You know, you ask them,
Speaker 9: are you feeling more stressed than you were a year ago? Yeah,
Speaker 9: and half of them are always on. There are more
Speaker 9: women who are saying I feel the need to always
Speaker 9: be on. So that's a big hangover from pandemic times.
Speaker 9: It's worse than last year, but fewer women feel comfortable
Speaker 9: talking about mental health at work.
Speaker 2: Emma hanging on for a second, like, how would you
Speaker 2: say this compares to pre pandemic? That was pretty frazzled
Speaker 2: pre pandemic.
Speaker 9: I was pretty fuzzle pre pandemic too.
Speaker 2: So is that because I'm trying to get an understanding of, like,
Speaker 2: you know, pandemic, which was lousy and so many people
Speaker 2: had very difficult situations. But I'm just wondering, you know,
Speaker 2: I have to say my first few months, I love
Speaker 2: being home from me and my family. It made us
Speaker 2: all stab for a moment. Yeah, So I'm just wondering, like,
Speaker 2: how do you think about it that way? You've been
Speaker 2: doing this survey since the period.
Speaker 9: Yes, and we did a pulse during the pandemic and
Speaker 9: the pretty bad findings well from that, so how does
Speaker 9: it compare to pre look mental health has always been
Speaker 9: an issue, you know, we have our physical health, we
Speaker 9: have our mental health. It's just talked about more and
Speaker 9: I think the workplace, I think how it compares is
Speaker 9: the workplace started to talk about it more because of
Speaker 9: the pandemic. But you know, the mental health and mental
Speaker 9: ill health has existed long before that. Always on has
Speaker 9: existed long before that. I think we got into habits
Speaker 9: during the pandemic that I don't think they're going away.
Speaker 9: And I think hybrid working is something that's new. You know,
Speaker 9: we didn't some of us hybrid worked, just we didn't
Speaker 9: call it hybrid working. Hybrid working is a new way
Speaker 9: of working that you know, is still some challenges there
Speaker 9: for women. So, you know, non inclusive behaviors. Forty four
Speaker 9: percent of women have experienced non inclusive behaviors in a
Speaker 9: workplace context in the last year.
Speaker 2: How would does that mean?
Speaker 9: So that effective means microaggressions or harassment. So of the
Speaker 9: respondent's nearly two thy five hundred women said I experienced
Speaker 9: it on at least one occasion a behavior that was
Speaker 9: you know, it was a microaggression or harassment. So, you know,
Speaker 9: and was that probably the case? Yes, I mean, you know,
Speaker 9: workplace culture has long been a challenge, and it was
Speaker 9: a challenge pre pandemic.
Speaker 2: Right.
Speaker 5: Yeah.
Speaker 4: We had a story the other week the terminal from
Speaker 4: Pew research data showing that US women now make as
Speaker 4: much or more than men in half of marriages. But
Speaker 4: I think that's really interesting to square that with some
Speaker 4: of the findings that you have on women still feeling
Speaker 4: the need to deprioritize their careers. Can you talk about
Speaker 4: the dichotomy there?
Speaker 9: Yeah, and this is interesting because the survey has been
Speaker 9: going three years, but this is the first time we
Speaker 9: wanted to find out about responsibilities in the home and
Speaker 9: about prioritization and who is the primary income source. And
Speaker 9: the findings were they surprising on the share of household responsibilities.
Speaker 9: Sadly not, they weren't. So we had, you know, just
Speaker 9: under half women saying I have primary responsibility. That only
Speaker 9: ten percent of women said their partner did. So that's
Speaker 9: the first thing, and don't forget most of these women
Speaker 9: are working full time as well. And then when we
Speaker 9: looked at income source, majority of women were not the
Speaker 9: primary income source. Majority of them prioritized their partner's career
Speaker 9: over their own. Now, the interesting thing there is that
Speaker 9: was still one five for women who are the high earner.
Speaker 9: So we had yeah, so you know, two and five,
Speaker 9: we're not one in five were not. So there is
Speaker 9: this challenge, And to me, it's like this sort of
Speaker 9: vicious circle almost because if you're deprioritizing your career, then
Speaker 9: your chances are becoming the primary earner in the household
Speaker 9: are reduced.
Speaker 2: Well, okay, so just get about forty five seconds left here.
Speaker 2: So what do you do with this? Because I feel
Speaker 2: like we spend years and years like we pull data.
Speaker 2: It's very useful. I think it gives us a great
Speaker 2: snapshat of what's going on, but so many times it
Speaker 2: doesn't get put into action.
Speaker 9: So what do we do with it? We need to
Speaker 9: know that we do not need to fix women, We
Speaker 9: need to fix the workplace. Okay, that's the first what
Speaker 9: we do with it? This report? What I love about
Speaker 9: it is it's data droven. It shows the impact and
Speaker 9: it shows the positive impact. Five percent of women work
Speaker 9: for companies that are getting it right. So any employers
Speaker 9: out there, you can look and see what is the
Speaker 9: secret source for those companies. It's around culture, it's around process,
Speaker 9: it's around support, it's round removing barriers. That is what
Speaker 9: we needs to do. If we take this seriously, which
Speaker 9: we need to, then we can make a difference.
Speaker 2: And when it's a tight labor force, which it still is.
Speaker 2: You know, workers are gonna move to where they think
Speaker 2: they're gonna have all of these things that they that
Speaker 2: they're looking for, and as you're seeing in your service. Absolutely,
Speaker 2: all right, Emma, safe travels home.
Speaker 9: Thank you very much.
Speaker 2: Nice to have you here, Emma cod she's global inclusion
Speaker 2: leader at Deloit. Here in our Bloomberg Interactive Brokers studio,
Speaker 2: you're listening and watching Bloomberg Business Week on this Wednesday
Speaker 2: Carol Masser along with Madison Mills, and this is Bloomberg Radio.
Speaker 7: M brother mark a.
Speaker 6: Journal How about you let me drive? Oh no, no, no, no,
Speaker 6: who's going to drive home? Honey?
Speaker 3: Please? How do the riding gravels?
Speaker 6: Let's mate, I want to drive.
Speaker 7: It's a good question.
Speaker 3: Try This is the Drive to the Globe long form.
Speaker 6: Men think well.
Speaker 1: Brian Ryoga don on Bloomberg Radio.
Speaker 2: All right, everybody got about seventeen and a half minutes
Speaker 2: left in today's trading session, the Wednesday trade, where of
Speaker 2: course getting meta earnings after the closing bell a few
Speaker 2: others as well. Charlie breaking down the trade for you,
Speaker 2: and you do see stocks continuing certainly in the broader market.
Speaker 2: Really we've got everything near it's loads of this session.
Speaker 2: The NASDAC now just up about four ten seven percent,
Speaker 2: so well off it's earlier gains. So let's get to
Speaker 2: it with Walter Todd. He's president and chief investment officer
Speaker 2: at Greenwood Capital Associates, joining us once again on Zoom
Speaker 2: from Greenwood, South Carolina. Hey, Walter, nice to have you
Speaker 2: back here on Bloomberg.
Speaker 6: How are you doing good, Carol?
Speaker 2: How are you doing okay? You know, in the thick
Speaker 2: of earnings, making our way through it and trying to
Speaker 2: make some sense of it, any clear tone or direction
Speaker 2: that you are getting off of earning so far.
Speaker 6: Yeah, Well, today is kind of a microcosm of the year.
Speaker 10: And by that I mean you've got the SMP itself
Speaker 10: down about half percent of the equal s ANDP down
Speaker 10: well over percent, So kind of this mixed market where
Speaker 10: the average stock is not doing nearly as well as
Speaker 10: the big guys. So that's Microsoft today. Outside of those earnings.
Speaker 10: More recently, I would say in general, we've gotten some
Speaker 10: kind of themes here. Healthcare equipment's doing very well as
Speaker 10: hospitals returned to normal after COVID, for example, but we're
Speaker 10: also seeing some pretty definitive messaging.
Speaker 6: On economically sensitive areas.
Speaker 10: So three reports in the past forty eight hours ups
Speaker 10: EKG and odfl Old Dominion very similar message saying March
Speaker 10: slowed really significantly. So that's that's a message that I
Speaker 10: think we need to pay attention to. And I know
Speaker 10: everybody's focused on Meta Amazon after the in the next
Speaker 10: two days, but I think maybe Caterpillar, honeywell, the US
Speaker 10: steel might be more telling of the economic environment.
Speaker 2: What was the second one you said, ups Old Dominion,
Speaker 2: What was the middle one?
Speaker 6: Packaging Corporation of America.
Speaker 2: Oh, okay, got it.
Speaker 4: So I wonder that to what extent you mentioned the
Speaker 4: slowing indicators, the slowing economic indicators.
Speaker 5: But I know that you also talk about.
Speaker 4: How we might be underpricing earnings and we're getting a
Speaker 4: lot of earnings.
Speaker 5: Beats this season.
Speaker 4: So which one earnings or economic data points indicating slowness?
Speaker 5: Which one do you watch?
Speaker 10: Yeah, depends on the day, right, But for us, I
Speaker 10: think you know this the bar, the low bar that
Speaker 10: companies are stepping over here because earnings were revised down
Speaker 10: pretty significantly heading into the quarter.
Speaker 6: I think it is the guidance though, right, which is.
Speaker 10: Speaking to this economic slow down and weakness that we
Speaker 10: see coming right now and in the second half if
Speaker 10: you live the real the GDP now, for example from
Speaker 10: the Atlanta FED that was two and a half percent
Speaker 10: last week, it's now one point one percent. And we'll
Speaker 10: get the first look at first quarter GDP, I think tomorrow,
Speaker 10: so we'll see what that looks like. But for us,
Speaker 10: it's probably more the risk and the back half to
Speaker 10: earnings due to slowing economic growth.
Speaker 2: It's interesting you say that are just meanten as a
Speaker 2: story out on the Bloomberg and she talked about it
Speaker 2: on air. But this whole idea that we've already seen
Speaker 2: the earnings recession Walter, and that we've already gone through that.
Speaker 2: So then you start to think about where does the
Speaker 2: you know, the market is forward looking, So are we
Speaker 2: at that point where the market's looking maybe into is
Speaker 2: it possibly already next year that we've had the worst
Speaker 2: for earnings? How do you see it?
Speaker 10: Yeah, So it's either looking like straight down at this
Speaker 10: feed or it's looking very far into the future. So
Speaker 10: I think I still think there's a risk to earnings
Speaker 10: in the second half of this year. So you're right,
Speaker 10: we have seen three two consecutive quarters in a row
Speaker 10: of negative earnings growth. We've got a third probably coming
Speaker 10: next quarter, but the back half most antis still have
Speaker 10: a pretty big rebound in earnings.
Speaker 6: I still think those probably need to.
Speaker 10: Come down a little bit, But you're right, I mean,
Speaker 10: the market is forward looking. However, if we are in
Speaker 10: fact going to have a recession, the markets really never
Speaker 10: bottom before the recession is started.
Speaker 6: So that's that's the debate right now.
Speaker 4: Well, I wonder also to what extent you're looking at
Speaker 4: your holdings with Microsoft versus Google. I know you've got both,
Speaker 4: and we had great earnings from both yesterday, But which
Speaker 4: one are you more excited about today?
Speaker 10: I would say right now, just on a valuation basis,
Speaker 10: that Alphabet looks more enticing here. It trades at about
Speaker 10: a thirty three percent discount of Microsoft, trades about twenty
Speaker 10: times versus thirty times for Microsoft, and it's actually going
Speaker 10: to produce probably eight to ten billion dollars and more
Speaker 10: cash flow per year than Microsoft. So at the risk
Speaker 10: reward right now, I would favor Alphabet, although again we
Speaker 10: do hold Microsoft as well, but we did pair that
Speaker 10: back to a model weight for us today on this strength.
Speaker 2: You sound you sound a little bit more negative than positive?
Speaker 2: Is that fair?
Speaker 5: Walter?
Speaker 2: And you know, I'm looking at my notes here, and
Speaker 2: you think the fetch not raise rates again on May third,
Speaker 2: but you do believe that they will. Are you more
Speaker 2: negative at this point? Are a little bit more cautious
Speaker 2: at this point?
Speaker 6: Yeah? I would stay cautious is the right word.
Speaker 10: I mean, we've been trade in this range from you know,
Speaker 10: thirty eight hundred to forty two hundred in the SMP
Speaker 10: for a while now. Obviously we've got below it in October,
Speaker 10: but we're we touched the kind of towards the upper
Speaker 10: end of that range. I think there's resk to trading
Speaker 10: back down. We had, you know, the debt ceilings still
Speaker 10: hanging out there. We hadn't really touched on that yet.
Speaker 10: That's a risk of policy resk in the coming months.
Speaker 10: And you know, we got a lot more earnings to
Speaker 10: go over the coming week. So I would say, you know,
Speaker 10: probably just a little bit more cautious right now.
Speaker 4: And when it comes to bank stress in particular, how
Speaker 4: concerned are you about the you know, six month outcome
Speaker 4: of that.
Speaker 10: Yeah, I think the kind of the downside of that
Speaker 10: situation is that credit conditions are going to continue to tighten.
Speaker 10: So you'll get the senior loan officer survey that we
Speaker 10: get from the FED. Last one we got was in January.
Speaker 10: Next one will be May eighth. But even in January,
Speaker 10: before the bank failures, forty four percent of senior loan
Speaker 10: officers said they were tightening lending standards to small businesses.
Speaker 10: You got to imagine that's going to go up. So
Speaker 10: credit conditions are going to tighten. It is probably going
Speaker 10: to contribute to an already slowing economy in the second half.
Speaker 2: How do you make sense of what we got from
Speaker 2: Visa And we know people are traveling, but cross border
Speaker 2: spending that growth unexpectedly was accelerating and they expect it
Speaker 2: to continue that increasing global travel demand. Is that optimistic
Speaker 2: or do you think that's an outlier and just everybody
Speaker 2: wanting to travel at this point?
Speaker 10: Yeah, No, I think it's a good point because we're
Speaker 10: talking The conversation at this point has been about the
Speaker 10: US economy, right, and we haven't talked about the global
Speaker 10: economy more broadly, and we are seeing we heard from
Speaker 10: American Express last week they called out strength in Europe
Speaker 10: and Asia, so we are seeing some strength emerge in
Speaker 10: some of these other economies. China reopening obviously, and I
Speaker 10: think that's what you can kind of attribute that Visa
Speaker 10: news to will get MasterCard tomorrow, which should be even
Speaker 10: more focused on the international side of things.
Speaker 6: So there are some there.
Speaker 10: Are some bright spots, perhaps outside the US at least
Speaker 10: the companies are pointing to that during these earnings calls,
Speaker 10: what are.
Speaker 2: Your investors money coming in? New money coming in? People
Speaker 2: kind of waiting waiting this out to kind of where
Speaker 2: this cycle goes next. Just got about thirty seconds.
Speaker 10: Yeah, no, Well, we're fortunate to getting some new new
Speaker 10: clients and new money coming in, and from our perspective
Speaker 10: in terms of investing that we don't want to try
Speaker 10: to necessarily guess the timing of the market. But at
Speaker 10: the same time, we're willing to be a little bit
Speaker 10: more patient. Perhaps someone normally would be in putting that
Speaker 10: money to work and being opportunistic with the volatility.
Speaker 6: But we're very encouraged. But the account growth interesting in
Speaker 6: all right, good.
Speaker 2: To leave it there, Hey, listen, great to check in
Speaker 2: with you, Dan, take care of Walter Todd. He's president
Speaker 2: and chief investment officer Greenwood Capital Associates. Joining us on
Speaker 2: zoom from Greenwood, South Carolina.
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