WEBVTT - Bonus Episode: Tesla, Meta and Microsoft Earnings 0:00:00.960 --> 0:00:04.840 This is Bloomberg Business Week with Carol Masser and Tim 0:00:04.880 --> 0:00:06.920 Stenevek on Bloomberg Radio. 0:00:08.160 --> 0:00:12.560 It is Bloomberg BusinessWeek. I'm Tim Stenevek. That is Carol Masser, 0:00:12.840 --> 0:00:15.080 and we are following what's going on with all the 0:00:15.080 --> 0:00:17.840 companies that are reporting right now so far. In terms 0:00:17.880 --> 0:00:20.160 of the big companies that we're following this afternoon, Carol, 0:00:20.239 --> 0:00:23.000 we're looking at shares of Tesla, which are lower in 0:00:23.040 --> 0:00:26.040 the after hours. In addition to that, we're also looking 0:00:26.040 --> 0:00:28.840 at shares of Microsoft, which are following after their report. 0:00:29.040 --> 0:00:32.760 Yeah. Absolutely, we've got Microsoft down almost four percent here 0:00:32.800 --> 0:00:36.000 in the aftermarket. As we said, some disappointment over maybe 0:00:36.040 --> 0:00:39.920 some of the numbers in the second quarter revenue sixty 0:00:40.000 --> 0:00:43.720 nine point sixty three billion estimate, estimate was sixty eight 0:00:43.720 --> 0:00:44.279 point nine two. 0:00:44.320 --> 0:00:45.040 That's actually better. 0:00:45.080 --> 0:00:48.280 Second quarter Azure revenue was at thirty one percent. The 0:00:48.400 --> 0:00:50.800 estimate was for gain of thirty one point eight percent. 0:00:51.760 --> 0:00:55.400 But the second quarter cloud revenue that missed estimate, and 0:00:55.440 --> 0:00:59.360 so that second quarter intelligent cloud revenue twenty five point 0:00:59.440 --> 0:01:02.600 fifty four billion dollars, the estimate was just a tad 0:01:03.000 --> 0:01:06.400 above that at twenty five point eighty nine billion. So again, 0:01:06.440 --> 0:01:09.920 maybe some concerns over that and expectations are high right now. 0:01:10.040 --> 0:01:13.640 Okay, he doesn't ignore it, but he doesn't cover it 0:01:13.920 --> 0:01:15.960 like some of his colleagues. Man keep seeing his Bloomberg 0:01:15.959 --> 0:01:20.360 Intelligence senior technology analyst as we await meta earnings to cross. 0:01:20.600 --> 0:01:22.000 We're going to make him go a little out of 0:01:22.000 --> 0:01:25.520 his element and speak to Microsoft, because you can't ignore 0:01:25.680 --> 0:01:29.320 what's going on with Microsoft. Man, deep, give us an 0:01:29.360 --> 0:01:31.480 idea of what sticks out to you from this company. 0:01:31.800 --> 0:01:35.280 I mean, look, the Intelligent Cloud number missed. Probably that 0:01:35.400 --> 0:01:37.920 has to do with, you know, a lower adoption of 0:01:38.600 --> 0:01:42.080 three sixty five co pilots. They've been touting that and 0:01:42.680 --> 0:01:45.680 the expectations had gone up. And look, it's one of 0:01:45.720 --> 0:01:50.680 those products where the ROI so far hasn't been there. 0:01:50.800 --> 0:01:54.320 The promise is there, and that's why they are emphasizing 0:01:54.360 --> 0:01:57.000 the Azure number. The thirteen billion dollar rund rate, one 0:01:57.040 --> 0:02:00.360 hundred and seventy five percent growth. Look, it's stellar by 0:02:00.520 --> 0:02:05.240 any comparisons. And from that perspective, the infrastructure side looks 0:02:05.240 --> 0:02:09.480 solid right now. It's the copilots and the application side 0:02:09.720 --> 0:02:14.240 where you're seeing some hesitation. And look, I think the 0:02:14.320 --> 0:02:18.120 native integration with open AI as long as it's there, 0:02:18.160 --> 0:02:21.079 it should help all their products. But there's more competition. 0:02:21.120 --> 0:02:24.519 I mean, Salesforce has been launching their agent so there 0:02:24.639 --> 0:02:27.520 is more competition in the application there now than there 0:02:27.520 --> 0:02:27.919 was before. 0:02:28.000 --> 0:02:29.600 And the point is you will build it, but will 0:02:29.600 --> 0:02:31.560 they come? And that's what it's kind of like what 0:02:31.600 --> 0:02:32.320 they're waiting for. 0:02:32.400 --> 0:02:37.120 Correct, Well, if you're asking enterprises to pay thirty dollars 0:02:37.200 --> 0:02:40.800 extra per user for that copilot feature, it better be good. 0:02:41.320 --> 0:02:44.120 I mean, that's the you know, the key takeaway is like, 0:02:44.200 --> 0:02:47.119 if you want to upsell such an expensive product has 0:02:47.160 --> 0:02:48.720 to have some level of productivity. 0:02:48.840 --> 0:02:54.040 So remind everybody where Microsoft stands in terms of the lms, 0:02:54.680 --> 0:02:56.800 because you mentioned a company like Salesforce. Is a company 0:02:56.840 --> 0:02:59.640 like Salesforce building its own LLLM or they building an 0:02:59.639 --> 0:03:02.880 agent on top now an existing LLLM, maybe from Microsoft, 0:03:02.919 --> 0:03:06.240 maybe Lama from Meta, maybe chat GPT from open Ai 0:03:06.440 --> 0:03:07.320 or claud from. 0:03:07.200 --> 0:03:10.040 mPire exactly, So they are not building their own LLLM. 0:03:10.160 --> 0:03:12.880 At the same time, they have gone big in their 0:03:13.000 --> 0:03:16.560 agent force concepts and they're saying AI agency is where 0:03:16.960 --> 0:03:19.640 they are doubling down on and they don't need to 0:03:19.639 --> 0:03:22.040 own an LLLM. So that's where I think with the 0:03:22.120 --> 0:03:24.560 open source saying, you know of deep seek and the 0:03:24.639 --> 0:03:28.280 fact that pricing is coming down, all that is positive 0:03:28.320 --> 0:03:31.839 for every application software provider, not just Salesforce, even word 0:03:31.919 --> 0:03:36.320 Day or SAP. They can integrate LLLM functionality now and we. 0:03:36.320 --> 0:03:39.120 Saw software names certainly rally this week. Having said that, 0:03:39.200 --> 0:03:42.760 Microsoft has a specially unique exposure to open AI and 0:03:42.840 --> 0:03:45.440 chat Gypt in terms of the what thirteen fourteen. 0:03:45.160 --> 0:03:47.920 Billion dollars or so that they have invested. 0:03:48.000 --> 0:03:50.360 So does that put them on a certain level of 0:03:50.440 --> 0:03:52.080 vulnerability Perhaps, No. 0:03:52.240 --> 0:03:56.360 Because they are benefiting from the infrastructure revenue that thirteen 0:03:56.400 --> 0:04:00.320 billion dollar rund rate. It's all Azure cloud consumption, nothing 0:04:00.360 --> 0:04:03.280 to do with the co pilots, just companies that are 0:04:03.360 --> 0:04:08.440 leveraging their infrastructure to run their cloud operations or deploy 0:04:08.480 --> 0:04:12.440 their applications. So that meter is still running, and it's 0:04:12.520 --> 0:04:14.520 running very fast. I mean, one hundred and seventy five 0:04:14.560 --> 0:04:17.880 percent growth just on infrastructure is very impressive. It's just 0:04:17.960 --> 0:04:20.480 the application side, the lift from copilot. 0:04:20.920 --> 0:04:21.880 I think that's. 0:04:21.800 --> 0:04:26.040 Where they'll probably see more competition and probably expectations were 0:04:26.040 --> 0:04:26.400 too high. 0:04:26.520 --> 0:04:29.880 Well, speaking of expectations, we're expecting Meta platform shares with 0:04:30.000 --> 0:04:32.800 platforms earnings across very soon. We have no idea what 0:04:32.800 --> 0:04:34.480 those shares are going to do in the after hours 0:04:35.080 --> 0:04:38.160 revenue estimate coming in at close to forty seven billion dollars, 0:04:38.480 --> 0:04:41.719 what's the most important line item that you're looking at here? 0:04:42.120 --> 0:04:45.800 So big Meta raised its capex right before we had 0:04:45.839 --> 0:04:47.880 this deep sixty five billion dollars. 0:04:48.279 --> 0:04:50.560 Okay, was that before? Because that had to be on 0:04:50.560 --> 0:04:51.640 Mark Zuckerberger's radar. 0:04:51.760 --> 0:04:54.560 It was, but still they chose to do it. Now 0:04:54.839 --> 0:04:57.960 the fact that this is really a positive development for 0:04:58.120 --> 0:05:01.760 open source, everyone is thinking Meta won't have to spend 0:05:01.800 --> 0:05:04.119 sixty to sixty five and they will take it back. 0:05:04.680 --> 0:05:07.520 So that capex number is still the key for me 0:05:07.640 --> 0:05:11.039 because Meta has been known for spending spending big on 0:05:11.120 --> 0:05:14.440 reality labs and now you know, building data centers. 0:05:14.560 --> 0:05:16.479 Are you saying that there's a chance we could hear 0:05:16.800 --> 0:05:19.480 a pullback in that capex number and investors might cheer 0:05:19.480 --> 0:05:22.560 that Investors cheered the investment number on Friday. I was 0:05:22.560 --> 0:05:23.480 surprised to see that. 0:05:23.880 --> 0:05:27.200 Not so soon, I think with the deep seek, the 0:05:27.279 --> 0:05:30.159 fact that you know, everyone is very excited about open 0:05:30.200 --> 0:05:34.480 source Meta coming out and saying we can monetize lama 0:05:34.600 --> 0:05:37.080 our model, which really no one will sure how are 0:05:37.080 --> 0:05:40.039 they going to monetize it? Suddenly, I think that's that 0:05:40.200 --> 0:05:44.560 becomes a very valuable proposition. And I think just his 0:05:44.800 --> 0:05:48.920 plans around how do they plan to monetize AI and 0:05:49.000 --> 0:05:52.520 really not going above sixty five billion, that's the other 0:05:52.600 --> 0:05:55.080 rest because you know, you could revise it further upward. 0:05:55.440 --> 0:05:58.279 At least, I think those fears have gone away, that 0:05:58.320 --> 0:05:59.919 they're sixty five is a cap. 0:06:00.839 --> 0:06:02.200 We talk so much about AI. 0:06:02.640 --> 0:06:07.240 I mean for Meta, it's still though, advertising, like something. 0:06:06.960 --> 0:06:10.320 As simple as that is still such an important indicator. 0:06:10.440 --> 0:06:11.120 That's their business. 0:06:11.200 --> 0:06:13.920 I mean, forty five point six of the forty seven 0:06:14.000 --> 0:06:17.520 billion dollars Carrol that's expected to be reported advertising, And. 0:06:17.520 --> 0:06:20.320 I understand it all plays together, but still that's the metric. 0:06:20.360 --> 0:06:23.320 Yeah, And the best way to compare is compare Google 0:06:23.440 --> 0:06:28.800 search revenue growth with Meta's you know, social media ad 0:06:28.839 --> 0:06:32.799 revenue growth. So Google Search is a two hundred billion 0:06:32.839 --> 0:06:36.000 dollar business growing at high single they did at best. 0:06:36.560 --> 0:06:39.679 Meta is close to one hundred and sixty billion, growing 0:06:39.720 --> 0:06:40.480 eighteen percent. 0:06:41.000 --> 0:06:45.400 How does reality Labs how do Reality Labs products help 0:06:46.839 --> 0:06:50.640 meta platforms sell advertising better? Well? 0:06:50.680 --> 0:06:53.680 So their bed is on that Meta AI, which for 0:06:53.760 --> 0:06:56.280 which they have six hundred million users now. And the 0:06:56.320 --> 0:06:59.520 form factor, their own form factor is the glasses that 0:06:59.560 --> 0:07:02.479 you can distill a model. And everyone is talking about 0:07:02.480 --> 0:07:05.800 distillation right now because that's what deep Seek showed us. 0:07:05.800 --> 0:07:08.719 That you can distill a larger model into a smaller model. 0:07:09.000 --> 0:07:10.960 Maybe that model can run on your glasses. 0:07:11.040 --> 0:07:13.480 Okay, how does that help me sell it more ads? 0:07:13.520 --> 0:07:16.680 Well, they will learn so much more about you as 0:07:16.720 --> 0:07:19.320 a person that they can show you a more personalized 0:07:19.360 --> 0:07:22.200 ad when you go to Instagram or Facebook. And that's 0:07:22.200 --> 0:07:24.680 where you know. Meta strength has always been the quality 0:07:24.720 --> 0:07:25.240 of their ads. 0:07:25.320 --> 0:07:26.480 So still, at the end of the day, that's what 0:07:26.520 --> 0:07:27.080 it's all about. 0:07:27.280 --> 0:07:28.520 Yeah, at least for now. 0:07:28.360 --> 0:07:30.000 I just want to remind everybody. I'm looking at our 0:07:30.040 --> 0:07:33.000 live blog, which is waiting for Meta's fourth quarter earnings. 0:07:33.440 --> 0:07:35.720 Our Kurt Wagner says they usually drop a few minutes 0:07:35.760 --> 0:07:37.920 after the market close at four pm New York time. 0:07:38.560 --> 0:07:41.080 Still waiting on them, they say, He says, it's a 0:07:41.120 --> 0:07:43.760 bit of a rare delay. We usually have them, like 0:07:43.800 --> 0:07:47.400 we said, right after the market close, so we're waiting them. 0:07:47.520 --> 0:07:49.000 As soon as they come across. We're going to have 0:07:49.000 --> 0:07:51.520 men deep break them down. Also in studio is our 0:07:51.560 --> 0:07:54.120 own Caroline Hyde, who's co host of Bloomberg Technology on 0:07:54.120 --> 0:07:57.440 Bloomberg Television. And Caroline, we've also had Tesla earnings. We've 0:07:57.440 --> 0:07:59.720 been talking with Man Deep about Microsoft as we await 0:07:59.760 --> 0:08:02.920 Meta go where you are because it just feels like 0:08:02.960 --> 0:08:04.920 both Microsoft and Tests I've seen some pressure here in 0:08:04.960 --> 0:08:05.240 the act. 0:08:05.360 --> 0:08:07.760 And also I don't know if you've broken down Service Now, 0:08:07.840 --> 0:08:11.760 but suddenly software became quite the thing of this week 0:08:11.840 --> 0:08:14.960 because we all suddenly freaked out about AI infrastructure and hardware. 0:08:14.960 --> 0:08:17.120 But with software going to be gaining from these Deep 0:08:17.160 --> 0:08:20.640 Seek revelations, Service now actually looking pretty lackluster. Outlook on 0:08:20.640 --> 0:08:23.360 the slower than have been anticipated. We were thinking AI 0:08:23.480 --> 0:08:25.680 was going to give it this massive bump. Overall fiscal 0:08:25.760 --> 0:08:29.560 year sales outlook fell short of those expectations. Subscription revenue 0:08:29.640 --> 0:08:31.880 going to be twelve point seven billion dollars twenty twenty five. 0:08:32.080 --> 0:08:34.480 Market want to see more, so their shares are dropping hard, 0:08:34.760 --> 0:08:36.040 and I think this is where we're going to have 0:08:36.080 --> 0:08:38.920 to hear more from Microsoft as well. Is the Open 0:08:38.960 --> 0:08:42.040 AI integrated offering not selling at the pace that they 0:08:42.120 --> 0:08:44.960 previoubly expected. I've heard from experts out there saying it's 0:08:44.960 --> 0:08:48.240 priced too high. Ultimately, at the moment, will Deep seek 0:08:48.480 --> 0:08:52.480 force open AI's own offering to get cheaper, Microsoft's offering 0:08:52.520 --> 0:08:54.800 to get cheaper, and therefore it becomes more ubiquitous. 0:08:54.800 --> 0:08:56.880 We will start using it more. But ultimately they get 0:08:56.880 --> 0:08:58.040 more bang for the back in the long term. 0:08:58.040 --> 0:09:00.120 Doesn't mean that these companies could potentially pull back some 0:09:00.200 --> 0:09:01.800 of the capeck they've already announced this year. 0:09:02.480 --> 0:09:04.640 I think that was interesting in the and we talked 0:09:04.679 --> 0:09:08.199 about it when the numbers dropped. Amy Hoard the CFOs 0:09:08.320 --> 0:09:09.719 talking about the discipline. 0:09:09.960 --> 0:09:12.400 Now, last year we were not talking about discipline. We 0:09:12.400 --> 0:09:13.079 were talking like. 0:09:13.120 --> 0:09:15.480 Let's throw eighty billion dollars at this. We just heard 0:09:15.520 --> 0:09:18.160 another half a trillion being thrown at it from Oracle 0:09:18.240 --> 0:09:20.600 Soft Bank and open Ai. I think you'll start to 0:09:20.600 --> 0:09:22.920 hear this. This is why spending. This is return on 0:09:22.960 --> 0:09:23.640 AI spending. 0:09:23.880 --> 0:09:25.880 Not quite a year of efficiency like we saw in 0:09:25.920 --> 0:09:28.800 you know, twenty twenty three, but now discipline spending. 0:09:29.000 --> 0:09:30.760 When it comes to com we're just spending wisely on 0:09:30.800 --> 0:09:31.160 your data. 0:09:31.280 --> 0:09:32.640 Just because you say it doesn't mean you're going to 0:09:32.640 --> 0:09:33.560 spend it ultimately too. 0:09:33.640 --> 0:09:35.280 I do want to point out service now reports an 0:09:35.320 --> 0:09:38.160 additional three billion dollars for share a buyback with the stuff. 0:09:38.360 --> 0:09:40.120 Yeah, but it's still down about nine percent here in 0:09:40.120 --> 0:09:41.880 the aftermarket. But men Deep come. 0:09:41.800 --> 0:09:44.400 Back in because we were talking about, you know, the 0:09:44.440 --> 0:09:46.439 news we got this week from deep seek that the 0:09:46.480 --> 0:09:50.240 beneficiary seemed to be the software software providers. Not every 0:09:50.240 --> 0:09:52.760 software provider though, is the same, correct. 0:09:52.600 --> 0:09:55.720 Well, I mean a company like Service now in theory, 0:09:55.840 --> 0:09:59.440 should benefit from lower LLM costs. I mean, all the 0:09:59.520 --> 0:10:03.800 software companies could arbitrage against the LM providers and say, 0:10:04.040 --> 0:10:06.560 if I have a cheaper open source option, I'm going 0:10:06.600 --> 0:10:08.960 to go with that because the quality of responses are 0:10:09.040 --> 0:10:11.839 very similar. So from that perspective, I mean, the news 0:10:11.920 --> 0:10:15.520 just came out, so obviously they didn't embrace open source before. 0:10:15.880 --> 0:10:17.880 And now a lot will change in the next three 0:10:17.920 --> 0:10:20.840 to six months, But for now, I think expectator to 0:10:20.880 --> 0:10:25.600 Caroline's point, expectations are high this quarter and a lot 0:10:25.640 --> 0:10:29.120 of these companies have touted AI agents in a big way, 0:10:29.520 --> 0:10:32.080 so the street wants to see their revenue and probably 0:10:32.120 --> 0:10:33.920 it's not showing up right now. 0:10:34.000 --> 0:10:36.160 And I had a really interesting conversation with that expert 0:10:36.160 --> 0:10:40.480 who's helping integrate generative AI into enterprise offerings. 0:10:40.840 --> 0:10:42.040 And here's the gap. 0:10:42.200 --> 0:10:42.360 Right. 0:10:42.400 --> 0:10:43.559 We've been talking. 0:10:43.440 --> 0:10:46.520 Deeply, exuberantly about how it's going to make our productivity 0:10:46.600 --> 0:10:49.040 so much better. Ultimately, enterprises need to know that their 0:10:49.080 --> 0:10:51.600 models work and they need to stress test them. They 0:10:51.600 --> 0:10:54.040 need to have the right companies in there ensuring that well, 0:10:54.080 --> 0:10:55.640 when you're saying it's going to get you a better 0:10:55.640 --> 0:10:58.520 mortgage outcome, when you're looking at insurance inquiries, you're actually 0:10:58.520 --> 0:10:59.320 getting the right output. 0:10:59.559 --> 0:11:00.800 Companies are trying. 0:11:00.520 --> 0:11:02.200 To integrate it, but they've got to do this with 0:11:02.280 --> 0:11:03.719 some rules of the road, so it actually takes a 0:11:03.720 --> 0:11:04.160 bit of time. 0:11:04.280 --> 0:11:05.959 Okay, speaking of rules to the road, perhaps a good 0:11:05.960 --> 0:11:08.480 segue to get to Tesla because shares are down about 0:11:08.480 --> 0:11:12.560 two point seven percent right now. It seems, Caroline like 0:11:12.760 --> 0:11:16.120 it was the adjusted EPs that came in shy of 0:11:16.240 --> 0:11:18.800 estimates seventy three cents per share versus estimates of seventy 0:11:18.800 --> 0:11:21.120 five cents per share. Is it about a lack of 0:11:21.160 --> 0:11:24.080 efficiency on the supply chain, on the product line? What 0:11:24.200 --> 0:11:24.400 is it? 0:11:24.440 --> 0:11:26.800 Am they're saying they're not getting the manufacturing savings that 0:11:26.840 --> 0:11:29.120 they wanted to see efficiency. 0:11:29.240 --> 0:11:30.319 Have they tried the blockchain? 0:11:30.559 --> 0:11:30.760 Yeah? 0:11:30.760 --> 0:11:31.680 Have they tried a blockchain. 0:11:32.440 --> 0:11:35.760 Have they tried just making everyone have to come back 0:11:35.760 --> 0:11:39.000 into the office, but more I mean, you know it's 0:11:39.040 --> 0:11:40.040 been on that for a long time. 0:11:40.040 --> 0:11:42.120 But more affordable models is where it's at. 0:11:42.200 --> 0:11:44.240 This is a company that is having to compete from 0:11:44.280 --> 0:11:47.120 a price perspective in China in a big way. And look, 0:11:47.160 --> 0:11:50.160 we saw deliveries did not live up to expectations. So 0:11:50.240 --> 0:11:52.440 already they're not selling as money, they're having to reduce 0:11:52.480 --> 0:11:55.200 the costs. It's interesting they're seeing the automotive gross margin 0:11:55.240 --> 0:11:57.679 ex regulatory credits still at thirteen point six percent. This 0:11:57.720 --> 0:11:59.360 is a company that basically makes an awful lot of 0:11:59.400 --> 0:12:03.520 money that because other car manufacturers can't get the climate 0:12:03.559 --> 0:12:04.920 initiatives out there quickly enough. 0:12:04.920 --> 0:12:06.240 I wonder if that'll dial back. 0:12:06.559 --> 0:12:09.520 But ultimately they did say they achieved record deliveries in 0:12:09.600 --> 0:12:12.040 China in fourth quarter. I wonder how they manage to 0:12:12.080 --> 0:12:14.280 be able to just keep on competing there. 0:12:14.600 --> 0:12:17.040 And no mention of robot taxis. I mean, the big 0:12:17.080 --> 0:12:21.520 bet was this administration should help expedite the rollout of 0:12:21.559 --> 0:12:24.040 Tesla robot taxis that's what investors are betting. 0:12:24.200 --> 0:12:25.760 The letter they did say this is going to be 0:12:25.840 --> 0:12:29.400 the year of supervised fully self driving, but we're still 0:12:29.400 --> 0:12:31.679 waiting to see what the guidances from the federal government. 0:12:31.720 --> 0:12:35.400 The cybercab is on track for twenty twenty six, so 0:12:36.240 --> 0:12:39.120 ultimately they're talking about still being wanting to. 0:12:39.040 --> 0:12:43.000 Get that cybercab out there. In the meanwhile, we're having 0:12:43.000 --> 0:12:43.480 to see. 0:12:43.360 --> 0:12:46.880 Whether or that cheaper price point new vehicle will happen. 0:12:46.920 --> 0:12:49.439 He's saying, new vehicles remain on track for the output 0:12:49.480 --> 0:12:50.600 start in the first half. 0:12:51.160 --> 0:12:52.600 When where how I. 0:12:52.600 --> 0:12:53.400 Just want to update. 0:12:53.720 --> 0:12:55.960 Meta shares are just down about five tenths in the 0:12:56.440 --> 0:12:58.000 after hours, five tens of one percent. 0:12:58.040 --> 0:12:58.800 Our Kurt Wagner and. 0:12:58.800 --> 0:13:01.920 Our live blog says, the latest Meta or Facebook they 0:13:02.000 --> 0:13:04.439 ever posted earnings is for sixteen pm. We have now 0:13:04.440 --> 0:13:07.120 a new record because it's for twenty pm here on 0:13:07.320 --> 0:13:10.400 this Wednesday. He says, in all seriousness, this is definitely unusual. 0:13:10.440 --> 0:13:12.680 I've asked the company what is going on? Will report 0:13:12.720 --> 0:13:14.839 back if I get any news. I was trying to 0:13:14.840 --> 0:13:16.720 see if there was any interesting activity here in the 0:13:16.760 --> 0:13:20.360 aftermarket ahead of the actual results. But again it's just 0:13:20.400 --> 0:13:22.280 down a hair down about four tens of a percent, 0:13:22.320 --> 0:13:24.280 but still waiting on Meta's results. 0:13:24.320 --> 0:13:26.400 I don't know manty if you follow them, right, they're 0:13:26.480 --> 0:13:27.840 usually up by now. 0:13:28.120 --> 0:13:30.920 I mean it reminds me on when Nvidia, I think 0:13:30.960 --> 0:13:33.560 it was a few quarters back they were delayed and 0:13:33.600 --> 0:13:36.920 everyone was like, what's going on? And sometimes I think 0:13:37.480 --> 0:13:41.200 it's one of those situations where yeah, there isn't much 0:13:41.240 --> 0:13:41.559 to it. 0:13:41.559 --> 0:13:44.760 It's just there is a delay and you just wait 0:13:44.840 --> 0:13:45.160 it out. 0:13:45.160 --> 0:13:48.400 But look, I think in the case of Meta, I mean, 0:13:48.840 --> 0:13:52.800 there's so many things that I think investors are looking 0:13:52.840 --> 0:13:56.480 forward to. Especially there was a number around Reality Laps 0:13:56.520 --> 0:13:59.319 growing forty percent for twenty twenty four, right, I mean 0:13:59.320 --> 0:14:02.720 you look at the census expectations for this quarter, it's 0:14:02.760 --> 0:14:05.320 like three percent growth. Yeah, so I don't know how 0:14:05.360 --> 0:14:07.240 they grew forty percent for the full year. 0:14:08.559 --> 0:14:10.800 Caroline, come on in here. Is that? Is that because 0:14:10.920 --> 0:14:14.679 the I don't know, the glasses exceeded expectations. Again, we're 0:14:14.679 --> 0:14:17.720 still waiting for these numbers across Reality Lads a tiny, 0:14:17.880 --> 0:14:21.320 tiny portion of the company's full revenue. I mean of 0:14:21.400 --> 0:14:24.680 tiny fraction, but an area where they're investing a lot 0:14:24.720 --> 0:14:26.440 and where they think there's a real future. 0:14:26.120 --> 0:14:27.880 And people got very excited about the product. Did you 0:14:27.920 --> 0:14:30.720 see how often Ed Ludlow has been wearing hiss. I've 0:14:30.760 --> 0:14:33.240 heard they really did. 0:14:33.120 --> 0:14:35.760 Blow people's minds as to how exciting the future could 0:14:35.800 --> 0:14:38.840 be of just the integration within your everyday where suddenly, 0:14:38.880 --> 0:14:41.640 you know, smart glasses became cool and thanks Raybound and 0:14:41.680 --> 0:14:42.440 a large part of that. 0:14:42.480 --> 0:14:45.520 But Google glasses calling. They're saying, hey, we had this 0:14:45.600 --> 0:14:48.680 ten years ago, but it didn't stick, and what you want. 0:14:48.560 --> 0:14:49.680 Is the zeitgeist. 0:14:49.800 --> 0:14:52.240 Right, Sure, people might not buy that iteration, what about 0:14:52.240 --> 0:14:54.160 the next iteration. What about the fact that this is 0:14:54.200 --> 0:14:56.520 going to in some way be infused within your work 0:14:56.560 --> 0:14:59.040 life environment as well, and suddenly you'll be able to 0:14:59.080 --> 0:15:02.920 have forced meanes wherever you are, not just to I 0:15:02.960 --> 0:15:06.040 think it suddenly just showed the power more than anything 0:15:06.120 --> 0:15:09.120 of Mark Zuckerberg to interlace General to Bai everywhere. For me, 0:15:09.200 --> 0:15:11.320 the big standout has been the fact that I do 0:15:11.480 --> 0:15:13.560 use General to Bai within my Instagram. 0:15:14.240 --> 0:15:16.600 What you do just out of curiosity my metter. 0:15:16.400 --> 0:15:19.160 Ai psidekick and I ask it questions. I get it 0:15:19.200 --> 0:15:21.760 to like design what one should wear for an event. 0:15:21.880 --> 0:15:23.600 I give it pictures of my fridge and get it 0:15:23.640 --> 0:15:24.840 to recommend what I should be. 0:15:25.240 --> 0:15:25.960 Do you follow it? 0:15:26.040 --> 0:15:27.600 Do you use it? I mean, do you like, take 0:15:27.640 --> 0:15:28.720 these things and actually do something. 0:15:28.800 --> 0:15:32.240 Yeah, yeah, yeah, definitely what they should cook sometimes the 0:15:32.240 --> 0:15:33.920 fashion sense, I like, take a little. 0:15:33.800 --> 0:15:35.960 But to be clear, you could also use chat gpt 0:15:36.080 --> 0:15:39.080 from open Ai to do that or that. 0:15:40.640 --> 0:15:43.320 I use what'sapp every day of my life to talk 0:15:43.360 --> 0:15:44.080 with my family. 0:15:43.840 --> 0:15:46.720 So I don't subscribe to the expensive versions of I 0:15:46.920 --> 0:15:50.560 take the free version of not not for my personal 0:15:50.640 --> 0:15:53.280 agent to you know, to get me a flight to wherever, 0:15:53.920 --> 0:15:55.560 which I think is a really cool idea. And I 0:15:55.560 --> 0:15:57.640 think that shows the promise of agents. And you know, 0:15:57.680 --> 0:15:59.640 we hear salesforce talking about the promise of agents and 0:15:59.640 --> 0:16:03.960 stuff like that. But are you able to do for 0:16:04.000 --> 0:16:07.280 free with Lama what you could pay chat gpt to do? 0:16:07.400 --> 0:16:08.200 Is that an issue? 0:16:08.320 --> 0:16:10.320 I have to say personally, I'm not running the two 0:16:10.320 --> 0:16:14.000 against each other, and I use chatchipt for other things. 0:16:14.040 --> 0:16:18.120 I'm using chatchipt to articulate what my O pair because 0:16:18.120 --> 0:16:20.320 we will have to rely while I'm at work on 0:16:20.600 --> 0:16:23.360 wonderful people looking after your children, how her weak should look, and. 0:16:23.320 --> 0:16:24.600 I just speak into it dictated. 0:16:24.640 --> 0:16:26.760 So I'm using different things at different points, but for me, 0:16:26.800 --> 0:16:28.760 I actually end up going towards the metal offerings A 0:16:28.800 --> 0:16:29.280 bit more. 0:16:29.160 --> 0:16:30.200 Just because they are here. 0:16:30.280 --> 0:16:34.000 We're seeing interesting an agreement from the Wall Street Journal 0:16:34.040 --> 0:16:36.520 talking about some Trump signing an agreement calling for Meta 0:16:36.560 --> 0:16:38.520 to pay some element to settle a suit. 0:16:38.600 --> 0:16:40.400 So maybe there's some breaking. 0:16:40.080 --> 0:16:43.520 News there, But I am I am using Meta AI 0:16:43.680 --> 0:16:46.240 just because it's already an app that I'm using when it's. 0:16:45.920 --> 0:16:47.720 I just want to mention Microsoft is not down as 0:16:47.800 --> 0:16:50.480 much as it was earlier. It's now down about three 0:16:50.560 --> 0:16:53.240 quarters of one percentage point. Tesla is now down only 0:16:53.280 --> 0:16:55.320 about nine tens of a percentage point. I want to 0:16:55.320 --> 0:16:58.560 mention IBM because we are seeing this one rally in 0:16:58.600 --> 0:17:01.640 the aftermarket following its earnings. This one's up about eight 0:17:01.720 --> 0:17:04.960 percent here. IBM coming out with results kind of older tech, 0:17:04.960 --> 0:17:07.320 if you will, but jumping after fiscal year revenue growth 0:17:07.359 --> 0:17:11.520 outlook tops estimates. We mentioned service now, and we are 0:17:11.600 --> 0:17:14.120 seeing that one move in a big way. We've seen 0:17:14.119 --> 0:17:17.399 that move to the downside. Some concerns there. We do have, 0:17:17.560 --> 0:17:21.160 as you said, that headline crossing from the Wall Street Journal, 0:17:21.200 --> 0:17:23.280 Trump signs of settlement for Meta to pay twenty five 0:17:23.320 --> 0:17:26.359 million dollars to settle a suit. So perhaps that is 0:17:26.480 --> 0:17:30.280 why we might be waiting ultimately for Meta's results. Meta 0:17:30.359 --> 0:17:32.800 in the aftermarket right now is just down about one 0:17:32.840 --> 0:17:35.520 quarter of one percent. And I've been also looking at 0:17:35.520 --> 0:17:38.320 the Nasdaq E Mini one hundred, Nasdaq one hundred E 0:17:38.359 --> 0:17:41.199 mini futures pretty flat in the after market, and S 0:17:41.280 --> 0:17:43.800 and P five hundred e mini futures they're down about 0:17:43.800 --> 0:17:46.280 four tens of a percent, So just kind of rolling 0:17:46.320 --> 0:17:48.560 everything together to see kind of market reaction. 0:17:48.680 --> 0:17:50.919 In Tesla though, hire now by about one percent. 0:17:50.920 --> 0:17:52.920 That's why I'm saying, it's like kind of fascinating to 0:17:52.960 --> 0:17:55.119 see the bump up. You're right now up about one percent. 0:17:55.200 --> 0:17:57.160 And I think what's interesting is remember in video you're 0:17:57.160 --> 0:18:00.159