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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: what helps you live or more happily fulfilled life. P

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Speaker 1: National Association Member FDIC.

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Speaker 2: Erness What's Up?

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Speaker 1: You ever walk into a small business and everything just

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Speaker 3: So that has lost forty five billion dollars on their

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Speaker 3: Metaverse division and the stock dropped after their earnings report

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Speaker 3: last Thursday. I believe when their guidance so we didn't

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Speaker 3: really meet the expectation. Even though their revenue am expectations.

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Speaker 2: They're incredible.

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Speaker 3: Their revenue outpaced expectations, profits were doubles, but their guidance

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Speaker 3: fell short and as a result, it dropped I think

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Speaker 3: like fifteen percent. On Friday, they lost two hundred billion

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Speaker 3: in market cup. So, okay, Ian, what's your take on this.

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Speaker 3: I'm gonna come in listen.

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Speaker 2: I know.

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Speaker 4: Normally I'm on the other side of his argument. This

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Speaker 4: is unfair like for them to have outperformed this well.

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Speaker 4: Zuckerberg is still an incredible shape. All offices are on fire.

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Speaker 4: Whatsappens doing incredibly well? Instagram is different. Put Sports Illustrated

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Speaker 4: out of business. You got all the bikini girls on

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Speaker 4: Instagram for free. They are the ultimate competitor, and they

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Speaker 4: dropped fifteen percent because they're guiding lower for the next quarter.

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Speaker 2: Meanwhile, Dusk and Master was.

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Speaker 4: Saying, hey, Tesla may be the new n Ride, and

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Speaker 4: they popped after earnings and then pop this morning after

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Speaker 4: they get the China deal done, like it's one of

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Speaker 4: those in it and I get it. I was talking

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Speaker 4: to everyone a red Pandla in stock club about it.

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Speaker 4: There was more upside on the Tesla trade at one

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Speaker 4: thirty eight one thirty nine than there is the Meta trade.

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Speaker 4: But for Teslas, I mean, for a matter to the

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Speaker 4: gap down fifteen percent, which I don't remember them ever

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Speaker 4: gapping down that much, and earnings, I don't know what

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Speaker 4: the analysts were thinking. Like normally I'm banging the table

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Speaker 4: on the other side of this argument.

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Speaker 2: But when it dropped. I'm like, the fucking happened?

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Speaker 4: Like the numbers were great, this appear he was honest,

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Speaker 4: and what's gonna happen next quarter?

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Speaker 2: And as a result, they fall fifteen percent?

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Speaker 1: But there's a keyer point. There's a key a point,

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Speaker 1: So like I think I text you, I think I

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Speaker 1: text you after Tesla and I'm like, yeah, makes sense

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Speaker 1: of it because we got to explain the why, and

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Speaker 1: so I had to dig really deep in the research

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Speaker 1: to figure out, like, all right, fifteen percent is crazy

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Speaker 1: and meta. Over the past few years, we've seen historic drops, right,

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Speaker 1: like they had the large decline in.

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Speaker 2: History, but they've also had the largest appreciation history.

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Speaker 1: This fifteen percent, this is when the honesty part of

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Speaker 1: being a CEO and a leader actually backfired for him.

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Speaker 1: But yes, it may it made sense why so yes,

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Speaker 1: the numbers doubling, profits, revenues is up twenty seven percent.

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Speaker 2: They actually increased their average ad price by six.

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Speaker 1: Percent, so they see more people put it as they

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Speaker 1: raise the prices on those the weak guidance was cast

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Speaker 1: for it. But what he admitted to is that they're

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Speaker 1: going to have to increase the spending in AI. They

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Speaker 1: want to be the leaders in it. They want to

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Speaker 1: have the infrastructure for it, they want to have the

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Speaker 1: platform for it, they want to be the innovators in it.

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Speaker 1: So you would think that would be a good time.

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Speaker 1: I want to get leaded behind. On the surface, it

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Speaker 1: is a good sign, so that increase. I think he

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Speaker 1: said up to ten billion a year in the AI spending,

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Speaker 1: which is a futuristic technology.

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Speaker 2: Correct, yes, So then we have to peel back the layers.

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Speaker 1: How much money or what was the last futuristic innovation

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Speaker 1: that they said they were going to spend money on.

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Speaker 4: I get it the metaverse. I've waived that flag loud

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Speaker 4: and clear. But guess what when you have market makers,

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Speaker 4: how much.

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Speaker 2: Did it lose? Quadrullions?

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Speaker 1: It was a lot, a fifty billion dollar futuristic innovation

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Speaker 1: that didn't pan out. You're now telling investors we're going

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Speaker 1: to spend more on a futuristic now we know that

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Speaker 1: this has a use case, right, which should be since

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Speaker 1: the future literally we can see it like we've see

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Speaker 1: it now, we're using it now, it has cuse. So

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Speaker 1: there was there were some paws in that, right. People

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Speaker 1: are looking like, well, they're going to spend more, We're

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Speaker 1: not gonna be able to recruit it, and Zuckerber said,

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Speaker 1: we're not going to be able to see profits from

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Speaker 1: the spending until maybe twenty twenty seven.

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Speaker 2: And so now you're.

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Speaker 1: Telling investors futuristic innovation, we're going to put more capital

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Speaker 1: into it. People have seen it over the past three years,

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Speaker 1: the future innovation they lost money in as an investor

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Speaker 1: fifty percent.

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Speaker 2: I mean, it doesn't make sense.

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Speaker 1: But those are some of the is that I fear, yeah,

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Speaker 1: that look, that's that that that slight fear of investigato

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Speaker 1: the future again and what if it doesn't work?

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Speaker 4: The different main differences between Metaverse and this spend is

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Speaker 4: that Meta wasn't a hardware company, per se, and no

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Speaker 4: one wanted the glasses. The AI move is in play

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Speaker 4: by Apple, Microsoft, Cisco, and Video Intel if you want

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Speaker 4: to throw them in the race. So there's already a

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Speaker 4: market for it. Then if you look at the gross

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Speaker 4: margins eighty percent, the Meta AI isn't bad.

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Speaker 2: And they also made the operating system for.

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Speaker 4: Their glasses open source, which I think was a brilliant

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Speaker 4: move to be able to have something open source in

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Speaker 4: an era where like Apple is too closed to let

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Speaker 4: developers develop on that platform. And of course because they're

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Speaker 4: not in the lead and that they're letting that be

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Speaker 4: open source. But I think they made a lot of

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Speaker 4: great moves these last two quarters. I think that that's

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Speaker 4: kind of like being like, well, I'm not going to

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Speaker 4: listen to Ian because you call square, what about the

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Speaker 4: fifteen hundred other great things? I'll call right Like, he

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Speaker 4: got that one thing wrong and I was the main

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Speaker 4: one wave in that flag. But if you look at Instagram,

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Speaker 4: even Messenger, the amount of uses they have on Messenger,

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Speaker 4: Facebook is still moving for the older crowd. I think

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Speaker 4: he's doing a hell of a job running that organization,

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Speaker 4: and in profits will higher. I like that the profit

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Speaker 4: margins twenty percent, gross margin is eighty.

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Speaker 2: You can't yeah, you can't argue with that. So I

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Speaker 2: think it was a mistake. And it's had a tremendous run.

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Speaker 1: So even with the fifteen percent pullback that the run

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Speaker 1: that has had over the past.

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Speaker 2: Two quarters has been incredible. Yea, So people who have

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Speaker 2: some profit take Yeah.

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Speaker 1: So if you've been in the stock since it was

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Speaker 1: down in the one hundreds one sixties, and you've wrote

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Speaker 1: this thing all the way up to four hundred four fifty,

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Speaker 1: fifteen percent pull back. Yeah, okay, a slight correction that

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Speaker 1: makes sense of it.

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Speaker 3: Yeah, well I spoke to it in cider. Are you

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Speaker 3: telling me this?

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Speaker 2: Yeah? Yeah, Anonymous.

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Speaker 3: So so I'll share what he had to say about

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Speaker 3: right after the earnings came out and it was crashing,

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Speaker 3: and he said revenue was up by twenty seven percent.

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Speaker 3: We're increasing cap x for artificial intelligence, and the same

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Speaker 3: risks that always persisted are there. Q one results are

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Speaker 3: instantly positive, especially with twenty seven percent year over year

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Speaker 3: growth in revenue. Market is over reacting at the moment.

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Speaker 3: I agree with that he said what we just said.

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Speaker 3: But yeah, I think it's interesting the kind of hair

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Speaker 3: from I mean that that even confirms, like kind of

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Speaker 3: what we just said, like perfect if there's an insight

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Speaker 3: who was saying the same exact thing I think this

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Speaker 3: is about. I think the CFO might be to blame too,

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Speaker 3: because she gave a very pessimistic outlook in her in

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Speaker 3: the guidance. So that's interesting. While she would do that,

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Speaker 3: I'm not sure, but I think that she. I don't

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Speaker 3: think her guidance report was something that they probably were

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Speaker 3: happy about, or maybe they wanted to stock to go

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Speaker 3: down so they could buy more who knows, but she

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Speaker 3: the CFO gave a very pessimistic guidance.

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Speaker 1: Outlook for the second quarter, right, Yeah, and so it

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Speaker 1: wasn't even a full guidance for the entire year.

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Speaker 2: So I mean take that with a grain of salt.

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Speaker 1: But medis here to stay, not going anywhere.

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Speaker 4: Yeah, and we got to reward seeos. To be honest,

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Speaker 4: I'm not going to continue rail on Elion.

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Speaker 2: But yeah, but Jesus Christ children, but the children.

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Speaker 4: He hasn't delivered on some promises, the mouse per gallon

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Speaker 4: that the carr can get at best. I think Dustin

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Speaker 4: went a little bit far calling at the new airon,

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Speaker 4: but math is not mathing.

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Speaker 5: An illegal alien from Guatemala charged with raping a child

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Speaker 2: Sponsored by the United States Department of Homeland Security,