Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: If it's a power breakfast in the ampten, you go
Speaker 2: to the Golden Pear.
Speaker 3: Is that what you do?
Speaker 2: Okay, you go to the Golden Pair.
Speaker 1: I don't know if Dan Ey's is at the Golden Pair,
Speaker 1: but he's out east as they say it's getting into
Speaker 1: the weekend. Yeah, he doesn't care about the jobs report.
Speaker 2: No, No, not at all.
Speaker 1: With IgE Yorkville, Danies joins us. Right now, Dan, I
Speaker 1: really want to focus on Microsoft. The amount of inertial
Speaker 1: force to get that jump condition in Microsoft. Where did
Speaker 1: that inertial force come from?
Speaker 4: I mean, I think first of all, the market was
Speaker 4: painting it wrong relative to where they were on the
Speaker 4: AI revolution, the monetization piece. And like I've said, I
Speaker 4: mean I believe what Microsoft showed in that quarter. I
Speaker 4: think that's an inflection point for all of tech because
Speaker 4: it shows what's happening to monization, the hyperscalurs. It's not
Speaker 4: just so important for Microsoft, but I think important for the
Speaker 4: overall sector. And look back, and this is gonna be
Speaker 4: a monumental sort of turning point.
Speaker 3: Hey, Dan, it's we had SpaceX last night. I'd love
Speaker 3: for you to frame out what the SpaceX story is
Speaker 3: now versus maybe what it was at the IPO, because
Speaker 3: obviously there's been a lot of volatility in the stock.
Speaker 3: It's obviously a very long term story, and it's obviously
Speaker 3: a big, big play on Elon Musk himself. What did
Speaker 3: you take away from the earnings release and the call
Speaker 3: last night?
Speaker 4: Look, I think part of it is that there's a
Speaker 4: longer term vision that's ultimately investors that bartering on the IPO.
Speaker 4: That's the view in terms of the broader AI space
Speaker 4: story and what Musk is going to do over the
Speaker 4: coming years. And when it comes to quarters, Look, there's
Speaker 4: no number that they're going to show that you could
Speaker 4: say neighbor withood, calm nerves right, given the lock up
Speaker 4: and just given some of the nervous interest scene. But
Speaker 4: for them, it's the balance because tap X is how
Speaker 4: they're going to narrow the gaps open AI and anthroject
Speaker 4: and that continues to be the tug war.
Speaker 2: Dan did Bill Ackman get this going?
Speaker 1: Because I had the clearest memory in Q one he
Speaker 1: stepped in with, you know, for Bill Ackman, an odd lot,
Speaker 1: you know, I mean, it was a a piece of
Speaker 1: change Yep, five point seven million shares two point one billion.
Speaker 2: That's an odd lot for Bill Ackman's a big one.
Speaker 2: Did he get it started? Dan Ice?
Speaker 1: It was like, OMG, Bill Ackman's long ostadgy Microsoft.
Speaker 4: Well, I think, I mean Ackman saw around the corner
Speaker 4: because investors were massively discounting what the monization story was
Speaker 4: going to be with Azure and I think ultimately counting
Speaker 4: out Nadella even because some of the open AI stuff
Speaker 4: and sort of the narrative, and I think it just
Speaker 4: speaks to him. We've talked about it obviously so much
Speaker 4: with you guys in the show. This is good. We're
Speaker 4: gonna have white knuckle moments, whether it's Microsoft, whether it's Tech.
Speaker 4: But the reality is this earning season shows you you're
Speaker 4: in the third inning. I can even even say bottom
Speaker 4: of the second. You almost go back to where this
Speaker 4: is all playing out. Roative demonization, especially on the hyperscalars.
Speaker 2: Up thirty eight percent from the end of March.
Speaker 3: Yeah, just I mean extraordinary. Hey, Dan, So where are
Speaker 3: we broadly defined on this AI conversation in the marketplace?
Speaker 3: What is the narrative in the marketplace? Because we had,
Speaker 3: you know, big tech earnings last week and a couple
Speaker 3: of companies stock reacted really positively, and Microsoft being one
Speaker 3: of them, Amazon and some others did not. Where What's
Speaker 3: what's the street thinking about AI these days?
Speaker 4: So I'd say, let's put it like a Jenga puzzle. Okay.
Speaker 4: So the hyperscalars have these good double down in Capax demonization.
Speaker 4: You now see whether it's outfed Amazon, Microsoft, the software piece,
Speaker 4: I think Palenteer front and center is showing you the
Speaker 4: enterprise use cases are accelerated. Even when you look at
Speaker 4: AMD despite what you saw, it just shows chips. We've
Speaker 4: said demand the supply twelve to one, thirteen to one.
Speaker 4: Obviously in video front and center, when you piece it
Speaker 4: all together and are accelerating the hyper scale or seated,
Speaker 4: that ultimately is a key catalyst for chip stocks. I
Speaker 4: think what you're essentially seeing now is that the second, third,
Speaker 4: fourth derivatives of this AI revolution cybersecurity among others. Now
Speaker 4: it's starting to spread. This is real and you can't
Speaker 4: even deny it, Okay, Dan.
Speaker 1: The reality is you're in the Hamptons because he's living large,
Speaker 1: so we all know that we are Invarians and you
Speaker 1: know it's like a thing.
Speaker 2: Dan you need to go up the coast to Maine
Speaker 2: to Roque Bluff.
Speaker 1: Rogue Bluff, it's almost like where FDR Summer Place was
Speaker 1: on the border with Canada. Like they're more Montreal Canadian
Speaker 1: fans out there than they are.
Speaker 2: Boston Bruin fans.
Speaker 1: And Dan we got a question here that's absolutely brilliant
Speaker 1: from from Rogue Bluff's main I hope I'm pronouncing that right.
Speaker 1: It does the innovation of AI?
Speaker 2: Does it?
Speaker 1: Is it cuitest Does it feed on itself into secondary
Speaker 1: and tertiary uses?
Speaker 4: That's our whole first, it's a great question, and that's
Speaker 4: our whole thesis. Is that what essentially happened. It's not
Speaker 4: about the models open AI and anthropic, it's about the data,
Speaker 4: the derivatives, the data center, build out, the cap bax
Speaker 4: but that's going to do the energy and it goes
Speaker 4: back to like for the first time in thirty years,
Speaker 4: the US is headed China.
Speaker 1: Okay, industrial guy, how does it? I mean Caterpillar just
Speaker 1: blew out numbers. You're gonna tell me it's data centers.
Speaker 1: What's Danaive's X axis for all these tertiary companies advantage
Speaker 1: by your AI world?
Speaker 4: Well, I think that's where when you look at Caterpillar,
Speaker 4: you look on the energy side like New Energy Quanta.
Speaker 4: I'm just giving an example of the companies that are
Speaker 4: playing into the buildouts, to the data centers, the Cappex buildouts.
Speaker 4: This is remember for every dollar in Cappex, there's a
Speaker 4: five to six multiply across the rest of TAP and
Speaker 4: I think that just continues to be our THEA. And
Speaker 4: I think this earning season, earnings now caught up maybe
Speaker 4: just where some shocks were.
Speaker 3: So what's the what's the next thing that you think
Speaker 3: the streets looking for over the next two, three, four quarters?
Speaker 4: DN?
Speaker 3: Is it more ROI evidence.
Speaker 2: Is it eight?
Speaker 3: Scaling back in Capex? What do you think that the street's
Speaker 3: looking for?
Speaker 4: Monization? You want to now see like is keing with
Speaker 4: the x accent. You want to now see go the
Speaker 4: baton hander from Capex to monization. And I also think
Speaker 4: there's just a wayser focus what's going on in Koupertino
Speaker 4: because the consumer AI revolution runs through Rupertina. What they
Speaker 4: do on the consumer side is by memoryships and everything
Speaker 4: else that is so important to their strategy.
Speaker 1: Dan is a twenty two dollars Ultimate Breakfast burrito at
Speaker 1: the Golden Pair Cafe.
Speaker 2: Is that a little rich for you? I mean just
Speaker 2: a breakfast burrito twenty two dollars.
Speaker 4: Wow, Look, I do think Golden Power. I'd say, are
Speaker 4: you maybe some of the best coffee in the United States.
Speaker 4: But I will say that that burrito, you know, I
Speaker 4: think it's price high, but I think well worth it.
Speaker 4: You know, for those that have never tried it.
Speaker 2: I mean, the chicken panini is just unbelievable. It's the
Speaker 2: charge more for that. Okay, you can't even get in
Speaker 2: the door there half the time, right there, Dan.
Speaker 4: It is, But I mean keen, he would you'd have
Speaker 4: VIP accents but for you. But for others, the regular people,
Speaker 4: the non keen, they have to wait out.
Speaker 2: God, can you see me out the happens.
Speaker 4: I could picture it, the bow tie going into Golden Power.
Speaker 4: I see the scene.
Speaker 2: Bill Ny, the science guy, busted my chops on that
Speaker 2: wend back. He was like the nerd patrol can go
Speaker 2: away in the Hamptons. Thank you so much for the
Speaker 2: prospective