WEBVTT - Instant Reaction: Alphabet, Microsoft Beat Estimates

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Chairs of Alphabet just soaring in the after hours right now,

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<v Speaker 2>Carol Hire after the company reported earnings up as we speak,

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<v Speaker 2>another thirteen point six percent in the after hours right now.

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<v Speaker 2>This after declaring a dividend, boosting a buyback, authorizing repurchase

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<v Speaker 2>of up to an additional seventy billion dollars and shares.

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<v Speaker 2>First quarter ad revenue coming out above expectations first quarter,

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<v Speaker 2>also declared it cash dividend of twenty cents per share.

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<v Speaker 3>All right, so let's get to it. James chalk Mak

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<v Speaker 3>so much to talk about. He's partnering technology analyst at

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<v Speaker 3>Clockwise Capital. He joins us from Miami. First of all,

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<v Speaker 3>Alphabet feels like I can't find anything wrong here. Walk

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<v Speaker 3>us through. Is this just kind of firing and all

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<v Speaker 3>cylinders and if you will, and then just throwing on

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<v Speaker 3>a dividend and then throwing on an additional buyback.

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<v Speaker 1>Yeah, First, thanks for having me. You know, for Alphabet,

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<v Speaker 1>this was a tough one. You know, we had the

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<v Speaker 1>meta earnings last night, you know, uncertainty as it relates

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<v Speaker 1>to the sustainability of the top line growth metrics, and

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<v Speaker 1>obviously Alphabet via Google had, you know, uncertainties around their

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<v Speaker 1>search business, and at the same time you had this

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<v Speaker 1>growth and capex spend. You know, is that going to

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<v Speaker 1>translate over? So you know, we were kind of debating

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<v Speaker 1>what to do and going into the quarter. We actually

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<v Speaker 1>rotated a portion of our Microsoft position to triple up

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<v Speaker 1>our Alphabet position. But thankfully that worked out. But I

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<v Speaker 1>tried to see you for Google. Yah, well yeah they're

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<v Speaker 1>both out, so yeah, I mean it worked out.

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<v Speaker 3>So why did you do it? What was it that

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<v Speaker 3>you saw, James in the in the Alphabet story that

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<v Speaker 3>you said you wanted to do that.

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<v Speaker 1>Well, the main thing was the relative valuations. I mean,

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<v Speaker 1>the expectations for Microsoft were exceedingly hot and the expectations

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<v Speaker 1>for Alphabet were exceedingly low. And you look at one

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<v Speaker 1>t trading at twenty two times earnings and the other

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<v Speaker 1>ones at thirty five times earnings, So you know what

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<v Speaker 1>kind of the risk reward is. And especially we had

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<v Speaker 1>some sense of how things might trade if they came

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<v Speaker 1>in on a bear because kind of narrative given how

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<v Speaker 1>Meta traded. So it really just boils down to that.

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<v Speaker 1>But the fact that Microsoft was able to exceed those

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<v Speaker 1>nose bleed expectations in the testament to the trends and

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<v Speaker 1>the force of trends that we're seeing in the in

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<v Speaker 1>the shift of the cloud and AAI. More broadly, Hey,

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<v Speaker 1>I just want.

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<v Speaker 2>To get your thoughts on Snap, because the company you've

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<v Speaker 2>been covering for years.

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<v Speaker 1>I would love to ask about that there through.

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<v Speaker 2>The good and the bad well. And the reason I'm

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<v Speaker 2>asking is because shares are up, wow, surging as we

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<v Speaker 2>speak by more than twenty percent, twenty five percent at

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<v Speaker 2>this point. This is after the company reported.

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<v Speaker 3>They are down thirty here today they are.

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<v Speaker 2>That's important context, Chris. The company is seeing second quarter

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<v Speaker 2>revenue from one point two to three billion to one

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<v Speaker 2>point twenty six billion versus estimates of one point two

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<v Speaker 2>one billion dollars. As Carol mentioned, it's been a brutal

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<v Speaker 2>year so far for Snap. How are you reading into

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<v Speaker 2>these results? And do you still you don't own Snap anymore?

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<v Speaker 2>Do you?

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<v Speaker 1>No? No? Not for a long time. You know with Snap,

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<v Speaker 1>you know, they were supposed to be the camera company

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<v Speaker 1>and transformed into you know, it's exactly what they were initially,

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<v Speaker 1>you know, just messaging in some content initiatives. But at

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<v Speaker 1>the end of the day, you know, I think it's

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<v Speaker 1>really really hard for these niche platforms to scale in

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<v Speaker 1>the manner in which is necessary to provide differentiation to

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<v Speaker 1>advertisers and the return objectives and return enhancements on the

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<v Speaker 1>on that ad spend. So I think that the disparity

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<v Speaker 1>between these niche platforms like a Snap versus the likes

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<v Speaker 1>of Alphabet and Meta will only increase from here. The

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<v Speaker 1>caveat being that you have companies like Pinterest, which we

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<v Speaker 1>used to own but sold, you know, just given the

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<v Speaker 1>fact that they hit our target. You know, I have

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<v Speaker 1>more opportunities because of the engagement that they've bring that

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<v Speaker 1>is likely to grow over time versus you know, stick

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<v Speaker 1>to more static rates, which is from the likes of Snap.

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<v Speaker 3>All right, we've got to go back to Google. Forgive

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<v Speaker 3>me Alphabet. I keep calling it Google, but I mean

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<v Speaker 3>your first alphabet. I know, I know, up twelve and

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<v Speaker 3>a half percent here, folks, in the aftermarket, this stock

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<v Speaker 3>heading into it had about a twelve percent gain on

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<v Speaker 3>the year here in twenty twenty four. The stock was

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<v Speaker 3>up almost sixty percent last year. But you know, when

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<v Speaker 3>when you look at Alphabet James, and you look at

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<v Speaker 3>its business lines and its roles and it's play, whether

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<v Speaker 3>it's AI, whether it's still advertising in a big way.

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<v Speaker 3>You know, our own man Deep Singh saying, you know,

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<v Speaker 3>this company is all about engagement. That's kind of so valuable,

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<v Speaker 3>and that's going to be valuable certainly in terms of

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<v Speaker 3>machine learning and jen Ai. This is really important stuff.

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<v Speaker 3>I mean, how do you think about you know, Alphabet

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<v Speaker 3>in kind of its future growth trajectory and kind of

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<v Speaker 3>where it goes from here. I mean, these are this

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<v Speaker 3>is a pretty impressive report, but it's also right appeasing

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<v Speaker 3>investors of saying we're going to throw some cash back to.

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<v Speaker 1>You absolutely, I mean any anything with respect to returning

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<v Speaker 1>capital to shareholders or you know, getting religion on the

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<v Speaker 1>cost side of their business and utilizing their cash flow

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<v Speaker 1>for more constructive purposes rather than throwing it into black holes,

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<v Speaker 1>which is the way that they have been operating for

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<v Speaker 1>as long as I can remember that being said. I

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<v Speaker 1>think that the future for Alphabet and Google, you know,

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<v Speaker 1>is still remains a question mark. We don't know, and

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<v Speaker 1>I don't think anyone can definitively say what that search

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<v Speaker 1>environment experience is going to look like in the future.

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<v Speaker 1>You know, when if you look out five years down

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<v Speaker 1>the road. Now. The good news is all of this

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<v Speaker 1>stuff seems to be like coming at you fast right

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<v Speaker 1>all the AI. It's over the Since January of twenty

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<v Speaker 1>twenty three, it's been coming hard and fast. But the

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<v Speaker 1>good news is on the on the behavioral aspect and

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<v Speaker 1>the consumer experience. You know, things have changed which GPT

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<v Speaker 1>and whatnot, but things aren't changing that fast overnight, which

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<v Speaker 1>affords Alphabet time to really figure things out, whether it's

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<v Speaker 1>cannibalistic to their existing search business or not. You know,

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<v Speaker 1>I think we have time. So I think extrapolating too

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<v Speaker 1>much too soon is a risk, you know, so as

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<v Speaker 1>long as they can they have the time, they might

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<v Speaker 1>figure it out. They may not, but they might. But

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<v Speaker 1>I look into twenty twenty four and twenty twenty five,

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<v Speaker 1>that's it.

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<v Speaker 2>Could Critics argue about Alphabet that declaring a dividend and

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<v Speaker 2>boosting a share buyback potentially isn't the best use of

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<v Speaker 2>money right now. Perhaps they should be investing more in AI.

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<v Speaker 2>Perhaps they should be investing more and making sure this

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<v Speaker 2>search product is bulletproof.

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<v Speaker 1>Yeah. I mean they're throwing off tremendous amounts of cash

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<v Speaker 1>as it is, and they're investing a lot, and and

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<v Speaker 1>you look at the margin disparity versus a meta you know,

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<v Speaker 1>they have a lot of cushion there, so and they're investing,

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<v Speaker 1>you know, strongly as well. So I don't think it's

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<v Speaker 1>utually exclusive. So long as the ball continues to move forward,

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<v Speaker 1>which is what we need to see, and we'll see

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<v Speaker 1>what the color commentary is on the call, I think

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<v Speaker 1>it'll be okay. I think the longer term is one

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<v Speaker 1>of the questions linger shorter term, it'll be fine, all right.

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<v Speaker 3>So let's go to Microsoft, because it's also the other

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<v Speaker 3>big one that are one of the big ones. After

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<v Speaker 3>the close, it's up about five percent here in the

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<v Speaker 3>aftermarket this one. Sales and profit beat expectations on robust

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<v Speaker 3>AI demand. That's the headline on our story. So quarterly

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<v Speaker 3>sales and profit climbing more than projected, lifted by corporate

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<v Speaker 3>demand for Microsoft's cloud and AI offerings. Revenue, as we said,

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<v Speaker 3>up seventeen percent in the third quarter, sixty one point

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<v Speaker 3>nine billion profit two ninety four a share. Analyst on

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<v Speaker 3>average estimated per share earnings of two point eight three

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<v Speaker 3>two dollars and eighty three cents. Excuse me, on sales

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<v Speaker 3>of sixty point nine billion, So again outperformance here, and

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<v Speaker 3>we know that such an Adella has been really infusing

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<v Speaker 3>all of Microsoft's entire product line with AI technology thanks

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<v Speaker 3>to its partner open Ai. So thoughts on Microsoft, what

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<v Speaker 3>we got here in the quarter, what it tells you

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<v Speaker 3>about their business today and going forward.

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<v Speaker 1>Yeah, what's most amazing to me is the fact that

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<v Speaker 1>they're able to maintain the growth rates no matter how

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<v Speaker 1>big their revenue base gets, and the fact that they're

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<v Speaker 1>able to deliver the numbers that you just cited and

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<v Speaker 1>do so in an efficient way where earnings are continuing

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<v Speaker 1>to grow at the same rate, so it's not a

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<v Speaker 1>there's no contra indicators on and you know, sales versus spending.

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<v Speaker 1>So I think that to me, the sustainability is the

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<v Speaker 1>biggest and most impressive component of their operations, and most importantly,

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<v Speaker 1>you know, broadly, I think you can extrapolate that the

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<v Speaker 1>themes on the data center spend and the semiconductors like

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<v Speaker 1>the NVIDIAs of the world, and the direction of corporate

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<v Speaker 1>enterprise and their appetite for shifting from analog to digital

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<v Speaker 1>is as strong as ever. So I think it's a

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<v Speaker 1>very very good omen for a lot of these companies

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<v Speaker 1>and being at the center of it. Because you can

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<v Speaker 1>make an analogy that you want in the first inning,

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<v Speaker 1>third inning, or whatever. But I think the main thing

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<v Speaker 1>is that the world is going to I think Sam

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<v Speaker 1>Altman has this quote that he said, the technological changes

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<v Speaker 1>that we've seen over the last five hundred years, No,

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<v Speaker 1>the changes over the next fifty years will be greater

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<v Speaker 1>than the technological changes over the next last five hundred, right,

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<v Speaker 1>you know. So that's the pace of change that we're

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<v Speaker 1>talking and a lot of that's going to come in

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<v Speaker 1>the first decade, and these companies are all at the

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<v Speaker 1>epicenter of it.

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<v Speaker 3>Just what and point out Azure Microsoft's cloud computing unit

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<v Speaker 3>revenue gaining thirty one percent in the quarter, above an

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<v Speaker 3>average prediction of twenty nine percent, so picking up slightly

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<v Speaker 3>from the thirty percent growth in the previous period. So

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<v Speaker 3>you know that's a trend line if you're following it, right,

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<v Speaker 3>you want to see I.

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<v Speaker 2>Mean, there's a chance we see both of the depending

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<v Speaker 2>on what happens. There's a chance we see both Alphabet

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<v Speaker 2>and Microsoft hit new records tomorrow in today's trade, depending

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<v Speaker 2>on what happens. Okay, I want to talk James just

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<v Speaker 2>a little bit about Microsoft's legacy here and the way

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<v Speaker 2>that it's been able to shift and embrace AI. Where's

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<v Speaker 2>the most important part of looking at Microsoft's growth moving forward.

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<v Speaker 2>I mean, I know, we obviously know Azure is incredibly important,

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<v Speaker 2>but the company has made a huge, huge bet on

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<v Speaker 2>AI with open Ai. Where do you start to see

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<v Speaker 2>that investment and its relationship with open Ai manifest in earnings.

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<v Speaker 1>I think it's going to be, you know, exactly, you'll

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<v Speaker 1>see it in the Azure business, but more broadly in

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<v Speaker 1>the intelligent cloud segment. I mean, it just continued to

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<v Speaker 1>trans on that front, but it's not just that segment.

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<v Speaker 1>It's going to have It's going to feed into other

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<v Speaker 1>parts of their business too, you know, on the subscription

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<v Speaker 1>side of their software services and potentially even gaming, and

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<v Speaker 1>you know, so there's there's a lot of levers I

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<v Speaker 1>think that will be pulled from that relationship. And as

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<v Speaker 1>the world and the corporate enterprise continues to move in

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<v Speaker 1>that direction, more data is going to feed into it,

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<v Speaker 1>which is going to fuel even more efficiency with respect

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<v Speaker 1>to the capabilities that they do. And you know, Copilot,

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<v Speaker 1>you know, for instance, is just on the I don't

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<v Speaker 1>want to use saying first end of that day, day

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<v Speaker 1>two of its potential. So and there's a lot of

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<v Speaker 1>money to be paid there that you'll see that. I

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<v Speaker 1>don't think it is being appreciated at all, virtually at all.

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<v Speaker 2>Right now, these are all different companies, but they're all

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<v Speaker 2>working on AI, and to a certain extent, they're competing

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<v Speaker 2>with each other when it comes to that technology. No question, uh.

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<v Speaker 2>Given what we're seeing from shareholders in reaction to micros

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<v Speaker 2>oft in alphabet today, and given what we saw today

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<v Speaker 2>in the session from reaction from investors to meta platforms

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<v Speaker 2>sending shares for their worst ten months, what did the

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<v Speaker 2>two companies that reported today get right? Or maybe a

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<v Speaker 2>better way to ask is what did meta platforms get wrong?

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<v Speaker 1>What did meta platforms get wrong? I think what they

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<v Speaker 1>got wrong was largely related to the management of the expectations.

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<v Speaker 1>You know, there was no indication around the pace of

0:12:34.400 --> 0:12:38.120
<v Speaker 1>investment that's necessary to sustain the kind of growth. I mean,

0:12:38.320 --> 0:12:41.320
<v Speaker 1>they talk very qualitatively.

0:12:40.480 --> 0:12:43.280
<v Speaker 4>About this is a big opportunity ahead, you know, all

0:12:43.320 --> 0:12:47.880
<v Speaker 4>the metaverse and YadA YadA, But you know, there was

0:12:47.920 --> 0:12:52.520
<v Speaker 4>no pushback whatsoever on the questions and commentary with respect

0:12:52.559 --> 0:12:56.480
<v Speaker 4>to you know, how we should expect the pace of

0:12:56.559 --> 0:13:01.240
<v Speaker 4>investment to ramp to justify and capitalize on the trend

0:13:01.360 --> 0:13:02.679
<v Speaker 4>that Zuckerberg talks about.

0:13:02.720 --> 0:13:06.280
<v Speaker 1>So I think it was more of an expectation versus

0:13:06.480 --> 0:13:10.040
<v Speaker 1>reality in mismatch that probably could have been better managed.

0:13:10.160 --> 0:13:13.360
<v Speaker 3>All right, let's just remind everybody the bigger earnings after

0:13:13.400 --> 0:13:16.199
<v Speaker 3>the close and those that have really outperformed here in

0:13:16.280 --> 0:13:20.480
<v Speaker 3>showing some studying moves to the upside, Microsoft among them.

0:13:20.640 --> 0:13:24.320
<v Speaker 3>That stock, as we mentioned, it is moving up just

0:13:24.480 --> 0:13:28.560
<v Speaker 3>about four point four percent here in the aftermarket, and

0:13:28.559 --> 0:13:32.760
<v Speaker 3>the company coming out sales and profit beating expectations, lifted

0:13:32.760 --> 0:13:35.760
<v Speaker 3>by corporate demand for the software maker's cloud and AI offerings.

0:13:35.800 --> 0:13:39.319
<v Speaker 3>We talked about Azure gaining revenue alone gaining thirty one

0:13:39.320 --> 0:13:43.080
<v Speaker 3>percent in the quarter that was above analyst expectations. Revenue

0:13:43.080 --> 0:13:47.360
<v Speaker 3>in the third quarter overall up seventeen percent to sixty

0:13:47.440 --> 0:13:50.160
<v Speaker 3>one point nine billion dollars. Profit was two dollars ninety

0:13:50.160 --> 0:13:53.880
<v Speaker 3>four cents a share. Analysts on average estimated per share

0:13:53.920 --> 0:13:56.080
<v Speaker 3>earnings of two to eighty three, so below what they

0:13:56.120 --> 0:13:59.520
<v Speaker 3>actually came in with, and the estimate for sales was

0:13:59.520 --> 0:14:02.200
<v Speaker 3>sixty point so again really hitting out of the park

0:14:02.200 --> 0:14:05.000
<v Speaker 3>when it comes to those estimates, and that is certainly

0:14:05.280 --> 0:14:07.400
<v Speaker 3>one reason why you're seeing the stock or a big

0:14:07.440 --> 0:14:10.840
<v Speaker 3>reason why you're seeing the stocks up. The stock of Microsoft,

0:14:10.880 --> 0:14:12.280
<v Speaker 3>I should say up at the aftermarket.

0:14:12.400 --> 0:14:14.360
<v Speaker 2>Okay, let's worth let's repeat a little bit of what

0:14:14.400 --> 0:14:17.640
<v Speaker 2>we saw from Alphabet the company's first quarter Google AD

0:14:17.679 --> 0:14:19.960
<v Speaker 2>revenue coming in at sixty one point six six billion

0:14:20.040 --> 0:14:22.360
<v Speaker 2>versus estimates of sixty point one eight billion, in the

0:14:22.400 --> 0:14:25.440
<v Speaker 2>company author authorizing a repurchase of up to an additional

0:14:25.520 --> 0:14:28.960
<v Speaker 2>seventy billion dollars worth of shares, also declaring a dividend,

0:14:29.040 --> 0:14:31.240
<v Speaker 2>a cash dividend of twenty cents per share. First quarter

0:14:31.320 --> 0:14:36.440
<v Speaker 2>revenue excluding traffic acquisition costs sixty seven point five to

0:14:36.520 --> 0:14:39.320
<v Speaker 2>nine billion, beating estimates of sixty six point oh seven billion.

0:14:39.560 --> 0:14:42.440
<v Speaker 3>To the downside, Intel shares are down more than eight

0:14:42.440 --> 0:14:47.120
<v Speaker 3>percent here, biggest maker of PC processors. Lacklow luster forecast

0:14:47.120 --> 0:14:49.880
<v Speaker 3>from the company for the current quarter, indicating it's really

0:14:49.880 --> 0:14:52.960
<v Speaker 3>still struggling to kind of find its way back to

0:14:53.080 --> 0:14:54.800
<v Speaker 3>the top, if you will. Sales in the second quarter

0:14:54.840 --> 0:14:57.560
<v Speaker 3>will be about thirteen billion. That compares with an average

0:14:57.560 --> 0:15:00.200
<v Speaker 3>analyst estimate of thirteen point six billion a quarter to

0:15:00.240 --> 0:15:03.200
<v Speaker 3>our data here at Bloomberg Profit Again, the outlook will

0:15:03.200 --> 0:15:06.200
<v Speaker 3>be ten cents of share minus certain items versus a

0:15:06.240 --> 0:15:10.040
<v Speaker 3>projection of twenty four cents, So that's a pretty big miss.

0:15:10.320 --> 0:15:12.760
<v Speaker 3>We're talking with James chockmock partner and tech analyst ever

0:15:12.760 --> 0:15:16.840
<v Speaker 3>at Clockwise Capital. James, is there's some underlying theme. We're

0:15:16.840 --> 0:15:19.440
<v Speaker 3>not through all the MAGS seven companies. We've got what

0:15:19.640 --> 0:15:20.640
<v Speaker 3>Amazon next week?

0:15:20.760 --> 0:15:22.920
<v Speaker 2>Yeah, we've gotten video in a while, right, so.

0:15:23.320 --> 0:15:25.800
<v Speaker 3>We've got some other plays to get through. But is

0:15:25.840 --> 0:15:28.280
<v Speaker 3>there any themes that you're finding, certainly for the investment

0:15:28.280 --> 0:15:31.960
<v Speaker 3>community when it comes to especially these big tech names

0:15:32.520 --> 0:15:35.840
<v Speaker 3>the mag seven often who haven't always been so magnificent

0:15:35.920 --> 0:15:39.400
<v Speaker 3>as of late, what they're saying and kind of their

0:15:39.440 --> 0:15:41.880
<v Speaker 3>impact on the overall market. Is there some big takeaway

0:15:41.880 --> 0:15:42.440
<v Speaker 3>here for you?

0:15:44.360 --> 0:15:47.320
<v Speaker 1>I think the biggest takeaway is that the sellers of

0:15:47.400 --> 0:15:51.400
<v Speaker 1>these data center services are the best place to be,

0:15:51.600 --> 0:15:56.440
<v Speaker 1>you know, from Navidia to Dell. The server side, like

0:15:56.480 --> 0:16:02.040
<v Speaker 1>we own VRT, which helps with the cooling system comfort systems,

0:16:03.240 --> 0:16:05.040
<v Speaker 1>you know, so there's a lot of these companies that

0:16:05.160 --> 0:16:08.920
<v Speaker 1>play into building out the companies that are selling to

0:16:09.000 --> 0:16:12.520
<v Speaker 1>the hyperscalers. I think will continue to be in a

0:16:12.560 --> 0:16:15.280
<v Speaker 1>great position now that as far as the Max seven

0:16:15.360 --> 0:16:18.200
<v Speaker 1>is concerned, I do think, you know, the market is

0:16:18.280 --> 0:16:23.960
<v Speaker 1>still in a state of shoppiness and volatility, and I

0:16:24.000 --> 0:16:26.200
<v Speaker 1>think that's going to last until we have better clarity

0:16:26.200 --> 0:16:27.920
<v Speaker 1>on what the FED is going to do. And you

0:16:27.960 --> 0:16:31.360
<v Speaker 1>saw the GDP numbers today, so there's there's mixed messages

0:16:31.400 --> 0:16:34.480
<v Speaker 1>as to which direction macro is going versus tech and

0:16:34.520 --> 0:16:38.040
<v Speaker 1>which one to prioritize, because if you've prioritize the economic cycle,

0:16:38.320 --> 0:16:41.080
<v Speaker 1>then that means valuations are at risk. If you prioritize

0:16:41.240 --> 0:16:44.480
<v Speaker 1>the text cycle, that means that earnings are the focus.

0:16:44.520 --> 0:16:48.240
<v Speaker 1>And right now we're in this world where some days

0:16:48.480 --> 0:16:52.040
<v Speaker 1>valuations are in focus and other days earnings like today,

0:16:52.440 --> 0:16:54.760
<v Speaker 1>So I think you just got to stay nimble at

0:16:54.800 --> 0:16:55.640
<v Speaker 1>the end of the day.

0:16:55.560 --> 0:16:57.960
<v Speaker 2>Hey, James, last question thirty seconds. Here, I'm looking at

0:16:58.040 --> 0:17:00.960
<v Speaker 2>time US Equity on the Bloomberg terminal. This is the

0:17:01.120 --> 0:17:04.639
<v Speaker 2>clockwise Core Equity and Innovation ETF. It is up this

0:17:04.760 --> 0:17:08.880
<v Speaker 2>year a whopping eighteen point three percent, out performing all

0:17:08.920 --> 0:17:12.560
<v Speaker 2>the benchmarks. Amazon is your second biggest holding after T

0:17:12.760 --> 0:17:17.080
<v Speaker 2>bills make accounting for five percent of the portfolio. We

0:17:17.160 --> 0:17:20.440
<v Speaker 2>got Amazon coming up. Thirty second preview of Amazon.

0:17:22.040 --> 0:17:25.000
<v Speaker 1>Yeah. Amazon, it's it's the only of the mag seven

0:17:25.160 --> 0:17:28.919
<v Speaker 1>that we feel that we haven't cut exposure to. You know,

0:17:28.960 --> 0:17:31.560
<v Speaker 1>it's a five percent or give or take weight, and

0:17:31.600 --> 0:17:34.960
<v Speaker 1>we're maintaining that. I think the data that you saw

0:17:35.040 --> 0:17:37.920
<v Speaker 1>from Microsoft and today is the really to the cloud

0:17:38.000 --> 0:17:41.000
<v Speaker 1>is a very good omen. They're firing across all three

0:17:41.040 --> 0:17:44.680
<v Speaker 1>other businesses, you know, on the on the grocery side,

0:17:44.680 --> 0:17:47.960
<v Speaker 1>the retail side, the cloud side, and this is the

0:17:48.000 --> 0:17:50.640
<v Speaker 1>first time in a while that you've seen everything going

0:17:50.640 --> 0:17:53.400
<v Speaker 1>in the right direction and most especially on the margin.

0:17:53.520 --> 0:17:56.080
<v Speaker 1>So you know, we like the risk loard here. You know,

0:17:56.200 --> 0:17:58.680
<v Speaker 1>I think next year you could get the two twenty five.

0:17:59.359 --> 0:18:02.800
<v Speaker 1>This year the upwards of two hundred, So you know,

0:18:02.840 --> 0:18:05.480
<v Speaker 1>it's one that definitely keeping the portfolio for sure.

0:18:05.960 --> 0:18:07.800
<v Speaker 3>All Right, we're going to leave it on that note. Hey, James,

0:18:07.800 --> 0:18:10.360
<v Speaker 3>thank you so much. James. Chuck Mack, partner and tech

0:18:10.400 --> 0:18:13.360
<v Speaker 3>analyst at Clockwise Capital joining us on Zoom from Miami.

0:18:13.440 --> 0:18:15.480
<v Speaker 3>A lot of names move in here in the aftermarket,